Browse Forums Home Finance 1 Feb 13, 2013 8:26 pm HELP!!! We have fallen in love with a house and land package by a particular builder here in Central NSW. The block is the right size and we love the plan as is. They are at slab level and are happy for us to choose colours and design the kitchen bathrooms and anything inside. We want to exchange contracts so that we can confidently have control over what's being built. We got a pre-approval from our bank 2 months ago and have gone to them for a final approval. But they have advised us that they can only valuate the house when it is finished and then approve the loan if all is well. Can't they do a valuation of the plan at this stage?? If not how can we get involved in this build (eg be able to have upgrades)-Obviously the builder would want certainity before he does what he wants. Could we apply for construction loan instead even though the house is at slab level already? (We are first home owners so have no idea how this all works) Re: Financing a house & land package already under construct 2Feb 14, 2013 6:35 am Hi Elberta, With all the banks that i deal with they do not consider a house currently in construction as an acceptable security for their lending policy. They will only fund either at the start of construction (vacant land) or past "lock up" stage which is when the properties structure is complete (walls and roofs are done). This is a bit of a catch 22 situation, the only way I can see that you would have control is putting a non refundable 10% deposit which would mean you are committed to this property hence would allow you control on the finishes. BUT you would only do this if you have Formal Approval or 100% confident of your own situation. Its a bit of a chicken and egg situation. There are situations where some banks can assist when the builder goes under and someone else takes over but we are looking at lower lends here most likely under 80% or just lending against the land value. Re: Financing a house & land package already under construct 4Feb 14, 2013 11:09 am Hi elberta, I know it may be time consuming but is there the possibility of maybe finding vacant land elsewhere yourself of a similar size and having the builder build to the same plan on that? Would give you control and you would be able to obtain finances beforehand. Cheers Tom If your patio is going to be 35 sqm then that's going to need Council Approval. The fact that they previously approved your 25sqm patio will be irelevant 1 5509 Yeah my reasoning is just that those house posts are designed for vertical load not lateral. I just didnt want to risk interfering with the existing house… 4 11545 you need to make an application to your local council for this as they are the approval authority for driveways cheers Simeon 1 7095 |