Browse Forums Home Finance 1 Apr 19, 2012 1:20 pm Hi, I will try & cut a long story short haha (no easy feat for a typical essay writer!!). My hubby & I have put down a deposit on our block in Drouin, VIC for $8,350 which was 5% of the total block price, it is expected to settle in April 2013. We are also going to be putting down a $2,500 deposit with the builder we have chosen (Hotondo) so that we can get the contracts drawn up and signed before the end of this financial year as we've been told by a lot of people that the FHOG will be ending - which for us would be $26,500 we can get to put towards our house!! Now. The tricky part you probably thought was coming. We have a part ix debt agreement on our credit history, and it will still be there until 2017 - its not yet paid off but we're going to be borrowing the money off hubby's dad who has offered to lend us money to help us out. We have been told by both a bank manager AND a really good mortgage broker that they are very confident that we will get the loan for the block if we save up the 20% deposit (less 5% which we've already put down) and pay off the debt so that even though it is still on our credit history, it will show it as being settled alot earlier than necessary. I dont see why they would go to the trouble to look into it all for us & give us that information if it wasnt true - what would they have to gain from leading us on. We shouldnt have any problems saving up the money - hubby works in the mines in WA and brings home a good wage (although we'd be a lot better off if we didnt have to put money away to allow for his weeks off but its still better off than we were before!) so we'll be putting $700 away a week for the next 12 months to make sure we have met the criteria we've been told to. I guess we've still taken a risk though as $10,000 is a lot of money to lose if we dont get the loan - so I'm wondering what can be done if none of the major banks will lend to us.....whether it would be worth going through someone like Liberty finance even though I've heard a lot of bad things about them - and then refinancing later on. Doing so would be a backup plan - the final option to desperately stop us from losing all that money. Some may call us stupid for taking such a big risk without having a 100% guarantee that we would get the finance, but I guess its only a slight risk from the advice we were given and if we didnt take the plunge and we found out it could have been done we would have been kicking ourselves. And if we lose out because we took the plunge then we'll definitely be kicking ourselves! But if it pays off it will all be worth it lol. Plus, the banks wont give us a pre approval as they only last for a short period of time - and the subject to finance on the block runs out THIS Saturday. Now what I am confused about - a) What possibility do we have of firstly getting the loan if we do save up the extra 15% for the deposit and paying our debt off and b) Will we definitely still get the FHOG if we sign up with our builder before the end of this financial year (in case it ends which we've been told it probably will) even though we wont be going to the bank to get a loan for either the land or construction until next year? And construction wont be starting until at least October 2013? I've bee told conflicting evidence from the builder, the bank and the sate revenue office so I just wanted to hear from other people to see if all you have to do is just sign that contract and that there are no building time restrictions and; c) When do we go and speak to/pay for a conveyancer?? We would prefer a conveyancer over a solicitor as it is a little cheaper. Should we be doing it now - or before we signt the building contract - or when we apply for the loan??? As a first timer with noone to get advice from (as they've never built) its all just a little bit daunting haha. Thanking you very much in advance for your help!! Kimmy87 Re: First Home Buyer Here - and Confused!! 2Apr 19, 2012 5:42 pm Can't answer a and b but the answer to C is the conveyencer manages the buying of the land which you will need completed before you start to build. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: First Home Buyer Here - and Confused!! 3Apr 19, 2012 9:54 pm Thanks Bashworth, any help is much appreciated =) I keep getting conflicting advice on all my questions so I guess I'm just going to have to keep asking LOTS of questions to find it all out......part of the learning process I guess =) Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5864 If this is a custom build then I would expect the builder to set out the door frame closer to the wall to avoid the gap between architrave and the wall and or specify… 9 8306 So it looks like we finally have some movement on site! Definitely later than expected, but I'll take any progress at this point. I'll drop by over the weekend to get… 5 27716 |