I had a sick day, saw a block of land on the internet, made an offer and had it accepted that day. Had no idea about the process so agreed to finance in 14 days, subject to suitable soil test within 21 days and 60 day settlement.
Problem is, we only want to do the finance as land and construction together and fear I have stuffed it up. Key details:
- -land contract signed 15/07 (14 day finance, 21 day soil test, 60 day settlement)
-$10k deposit paid 16/07
-a fixed priced tender allowing the soil and survey tests signed 21/07
According to the documentation provided by the builder:
- -SALES TENDER--soil and survey, site and floor plans to take 2-3 weeks
-CONTRACT--working drawings, specs and contract a further 2-3 weeks after
-bank says allow 1 week to process unconditional approval
1. Do we have no choice but to apply for an extension of finance by many weeks in order to submit the lending application in one hit?
2. In the builders CONTRACT stage it outlines how the 5% deposit balance is payable. Does this mean we submit the full loan application after the SALES TENDER stage? (effectively meaning only a 3 week finance extension)
We don't want separate land and construction applications as there may be transport noise corridor cost increases and the guy on the block next to us says it is an 'E' class soil that required a 'P' class slab. We don't want the final costs to blow out to such an extent that we are left with a land loan and unable to get the construction loan.
Thanks in advance,
dant