Browse Forums Home Finance 1 Jan 30, 2013 9:02 am So we've been pre approved for our land and construction loan subject to valuation which we were all like yippee! about and then we'e told we need council approved plans and the land contract and the building contract to give us full finance. At first I was like I guess that's fine but then it becomes clear that what we now have to do is hope that the land owner is willing to wait for us to get plans approved at council on his land (he would have to give written permission) and a building contract drawn up before we will get finance. The bank have basically packaged it like a Home loan and not a seperate land and construction loan so won't let us buy the land without the house ready to go. Has anyone heard of this before? Blog http://tobuildahomeimprobable.blogspot.com.au/ Settlement Apr Council Jul Contracts Dec Earthworks Dec Frames Jan Trusses Feb Roof Feb Windows Mar Re: Building loans, does my bank know what it's doing? 2Jan 30, 2013 9:13 am FYI It's in nsw and they don't usually do land contracts 'subject to finance'. Blog http://tobuildahomeimprobable.blogspot.com.au/ Settlement Apr Council Jul Contracts Dec Earthworks Dec Frames Jan Trusses Feb Roof Feb Windows Mar Re: Building loans, does my bank know what it's doing? 3Jan 30, 2013 9:20 am My understanding is that is how a construction loan works, well that's how ours was done. We put an offer on the block and then had the plans for the house done and building contract. We took that to the bank and got finance approved. We then settled on the block. We didn't have to have council approval but the bank won't release the funds to the builder for any work they do until they have proof of building approval and building insurance. Our owner was good and let us extend our finance and settlement dates. The other option is to get a loan for the land and then do the loan for the build later, but if you don't have the 20% deposit you can get stung with loan mortgage insurance. I'm in WA, so may be slightly different. Our offer was all subject to finance. Good luck! Re: Building loans, does my bank know what it's doing? 4Jan 30, 2013 9:43 am See that's my problem is that my plans must be council approved and my offer can't be subject to finance. So basically I can submit plans to council and dump like 5 grand into the whole thing only to have the bloke sell the block to someone else. I have no security because they won't release the land money until I've been through that process. Blog http://tobuildahomeimprobable.blogspot.com.au/ Settlement Apr Council Jul Contracts Dec Earthworks Dec Frames Jan Trusses Feb Roof Feb Windows Mar Re: Building loans, does my bank know what it's doing? 5Jan 30, 2013 4:11 pm Not to worry! Not that anyone was particularly, but the lady at the bank rang me back finally and said she is going to try and get the money released for the land as kind of a separate loan so we can secure it before we go to council. I was getting worried in the middle there. Looks like we're buying some land! Blog http://tobuildahomeimprobable.blogspot.com.au/ Settlement Apr Council Jul Contracts Dec Earthworks Dec Frames Jan Trusses Feb Roof Feb Windows Mar Re: Building loans, does my bank know what it's doing? 6Jan 30, 2013 5:35 pm Was coming in to say our bank is going to let us do it the way you wanted to (& are now)doing Re: Building loans, does my bank know what it's doing? 7Jan 30, 2013 5:40 pm I'm just so confused as to why they didn't just do it that way in the first place...lol Blog http://tobuildahomeimprobable.blogspot.com.au/ Settlement Apr Council Jul Contracts Dec Earthworks Dec Frames Jan Trusses Feb Roof Feb Windows Mar Re: Building loans, does my bank know what it's doing? 8Jan 30, 2013 5:42 pm yeah who knows hey! Someone new making a mistake for all we know. Re: Building loans, does my bank know what it's doing? 9Feb 05, 2013 1:22 pm The loans should be separate- Land loan settles first than the build loan later on...unless the bank officer/broker structured the loan as a package and submitted both loans together that way ( a costly mistake...) Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au I had an old shower unit that broke on me and when I took it off, there were only 2 water pipes, instead of the normal 2 water pipes and a shower head pipe. S o I… 0 36934 The DIY project can be broken into two major steps. Planning and Design and Construction. Both of these steps are as important as one another to ensure you give… 0 5149 Hi group, have some damage to the door frame and skirting board. It's a side door to the laundry area. Only has a security door. I had a termite inspection (note drill… 0 5050 |