Browse Forums Home Finance 1 Jan 04, 2012 9:52 pm I need to pay for both land and house separately. For the land, 10% of the land price around $26000 needs to be paid around Feb, the rest $240k needs to be paid around April. For building the house, 10% the cost around $24000 needs to be paid around Feb, the rest $220k needs to be paid in 20% several times after June. My parents will sponsor me $100k within one year. According to my case, I am able to pay for both 10% by myself. Should I apply for home loan before the 10% payment or before paying the rest which I need mortgage? Thanks for your help. Re: How to process home loan when building my own home? 2Jan 04, 2012 10:08 pm Hello, To put it simply, apply for your home loan before you pay the 10%. This just gives the bank/lender/broker time to process and get the best deal for you. Usually the seller's agent will require finance approval by a certain date anyway..... The more time you have up your sleeve, the better. This is coming from someone who works in the finance industry.... So I may be slightly biased Re: How to process home loan when building my own home? 3Jan 08, 2012 11:47 am From the time frame it sounds like your buying a land and house package ( builder owns the land) - and the land is waiting for sub-division...ie not yet registered? From the banks point of view- you need to have the 100k or the depoist amount in your bank account from the day you sign the contact- they will not accept a "in-flow" of cash... in case some problems happens half way - ie your parents having financial issues and can no longer give you the $$ or the money is delayed etc... The bank most likely will not approve a land loan by itself it needs to include the fixed price building contract as well and you need to be able to finance them both at the time you apply. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: How to process home loan when building my own home? 4Jan 08, 2012 10:24 pm Thanks guys. After carefully thinking about my situation, I decided to borrow money for the land only. I will borrow up to 80% of the land value. I will try to pay off the construction cost progressively. Thank you for your help. Best Regards, Hao The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19096 I apologise for any confusion, but your understanding is correct. We approached our situation differently based on advice from… 11 53198 Thanks very much! And would the landscaper/contractor generally involve the engineer or is that something the client would do? Thanks for your help 2 10019 |