Browse Forums Home Finance 1 Mar 11, 2012 9:19 am We're in the process of drawing up loans for our build that should start in the next 2 months. Our broker has mentioned that we are required to gain quotes for driveway/landscaping/curtains/fencing, to provide to the bank (B@nkW3st) I feel bad calling up a trade & gaining a quote for a house that doesn't yet exist, for a service we'll probably never use. We have an amount of cash set aside in another account for all of the above to be completed, and we are going to do the landscaping ourselves, fencing quote will not be accurate as we'll be splitting it with 3 other neighbours. I believe it's all to do with the evaluation? We have a 30% deposit towards this build/land. Is this normal? Has anyone else had to gather quotes? Built the Seaview 36 with Rawson Homes - Read about it on my blog http://lamaisondemorgan.blogspot.com.au/ Quotes required for mortgage on a new build? 2Mar 11, 2012 12:16 pm You normally only require quotes if you are seeking finance for these items. If you are only looking at a 70% LVR then the house and land valuation should cover it shouldn't they? Some things are worth waiting for. Re: Quotes required for mortgage on a new build? 3Mar 12, 2012 7:30 pm What Kyrton said ^ If you dont require or don't want/need the bank to finance landscaping and fence then there is no need to obtain those quote; if anything apply for an 80% Lend on the land and build and this will provide you with an 10% buffer for any short falls + fence and landscaping Cheers Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Quotes required for mortgage on a new build? 4Mar 15, 2012 9:14 am We have just gone through all of this, our broker advised that we should place allowances in the building contract for bank finance and then the builder will do post contract variations so you get the money at the end from the bank. Then you could just pay the amount of the mortgage I assume. We got a quote for timber flooring and carpet and then added an allowance in to contract. We also did this for the driveway. They wont finance things such as drapes as they dont add value to a property. Good luck with the build Smorgzzz! Re: Quotes required for mortgage on a new build? 5Mar 20, 2012 12:59 pm We too have our construction loan through Bankwest. Our broker told us that we had to get quotes for a minimum of turf, driveway and floor coverings as Bankwest doesn't class a house as 'complete' unless those items are completed. For example if you default on your loan and they need to sell the house quickly at minimum those things should be complete. We included the quotes for each item and if we get to the end of our build and decide we don't want to use them or have our own cash to pay then we don't need to use it but we will still have the funds sitting there. If you have your own cash now to pay for the items then you should still get quotes and that way the value of the item is included in your overall value and because you are funding them yourself you have more equity in the property then. It wasn't until we sat down with our broker and he explained it all that we understood so I hope i've helped! Re: Quotes required for mortgage on a new build? 6Mar 20, 2012 3:47 pm Marcoola - thank you!! You've explained that a lot better than our broker did! We've asked our builder to do up a quote for us, I'm sure it'll be ridiculously expensive!! Built the Seaview 36 with Rawson Homes - Read about it on my blog http://lamaisondemorgan.blogspot.com.au/ Re: Quotes required for mortgage on a new build? 7Mar 21, 2012 11:40 am You're more than welcome, glad I could help! Within 10 minutes of me posting that yesterday our broker called and said Bankwest wanted quotes for fencing and window coverings before they would sign off on the loan so I was in a mad dash getting that organised yesterday afternoon! All sorted now but just another thing to be aware of! We didn't do any of those finishings (not even floors) through our builder as we knew they would charge through the roof. Bankwest will pay the final payment to the builder and then distribute the funds to our floor people, driveway guy etc so if you can be bothered chasing quotes that may be a cheaper option for you rather than through the builder? Em Re: Quotes required for mortgage on a new build? 8Mar 21, 2012 6:25 pm Thanks! Our builder has written up a tender for us which came through today. Built the Seaview 36 with Rawson Homes - Read about it on my blog http://lamaisondemorgan.blogspot.com.au/ Re: Quotes required for mortgage on a new build? 9Mar 24, 2012 8:40 pm What did you guys have to present to your bank in order to gain approval for your loans? Just the tender? Or did you have to go beyond Tender stage before the bank would approve the loan? My broker reckons the Bank will want the fixed price contract and will want the driveway/floor coverings/turf included for LVR purposes. I'm a little hesitant to go beyond the stage of the initial Tender though as the next step is another $4000 on top of the $1000 we paid for the Tender. I wish the bank would give us the nod based off Tender + Quotes for Driveway/Floors etc. Re: Quotes required for mortgage on a new build? 10Mar 25, 2012 8:12 am We have pre-approval for a set amount, and our build comes in under that. We are waiting on the building contract to come through this week to set a figure in stone with the bank. The variation for the finishings won't be in the contract, it's a separate price which is just to satisfy the bank. We have already paid $10,750 to our builder for the tender, and DA process. Built the Seaview 36 with Rawson Homes - Read about it on my blog http://lamaisondemorgan.blogspot.com.au/ Re: Quotes required for mortgage on a new build? 11Aug 16, 2012 1:52 am we got a quote for timber flooring and got finance for that and the build contract. my broker neglected to mention that you have to go with the original quote. we are coming to the end of our build and wanted to change to laminate, our broker says if we do that cba will revalue and possibly it will come back low in the current market. if he'd told me that was the case i'd have researched better in the first place! anyone have experience with this? Our build with carter grange: http://bojarkus.blogspot.com.au/ Re: Quotes required for mortgage on a new build? 12Aug 17, 2012 2:02 pm Most banks will want more than just a tender price as it doesn't provide a fixed price nor does it provide the progress payment schedule that the banks must ensure is within the HIA guidelines. If you can get the tender with the progress payment schedule as an annexure you could give this a go but usually a tender is prior to soil tests which forms the basis of your earthworks, footings and slab costings. You would hate to have a surprise of an additional $20k in foundations once the soil test was done. Talk to your builder as they will most often try to work within what the bank needs and what they can provide. Some banks are adamant on requesting a fixed price building contract and some aren't. If you have plenty of deposit and strong employment then your finance should not be a problem. There are some banks we can order upfront valuations so we know where the valuation stands prior to lodging an application. If its low then we simply go elsewhere without affecting your credit file with unnecessary credit enquiries. Hope this helps. Not back peddling at all. You seem to have issues with comprehension my friend. Guy fcked up, he's considering being dishonest with his bank and hiding it. It will end… 21 12571 The irony. I'm starting to wonder if this a Bimguys second account. 84 29371 Like with any service, they don't have to compete on price. They know the market rate for a particular service and offer it for a relatively same price. I am not a sparky… 1 3704 |