Browse Forums Home Finance 1 Mar 11, 2014 8:52 am Hi, Maybe a dumb question but we've got to start somewhere! We found a block and a design we like, but in order to finance the block & construction we need a building quote. Is it normal to have the quote drawn up before putting in the offer on the land, or to ask for a long enough finance clause to get the quote done & build+construction loan agreed? The only other option seems to be doing two loans, which I'd rather avoid, in case of valuation problems (not expected but we're pretty cautious people). Or am I missing something! Cheers, Mike Re: Land, tender, finance - which order to do them in? 2Mar 11, 2014 4:54 pm My understanding is that you will need to do them separately because you will need more than just a quote for loan approval - im fairly sure you will need an actual contact (either preliminary or final) and with some banks council approval. I think at this point you would be best to place the block on hold and get the engineering plans to your builder for their feedback. Then if you went ahead you would be placing a deposit on the block and settling that first. I guess it also depends on your builder and how quickly they can put it together for you but ours took 2 months to get from signing up to preliminary contract. Unless the block is not titled yet - that is different.We are waiting on our block to title so we are applying for the combined land and construction because we are already under contract with our builder. Maybe you need to check with your broker what is the best way My build thread: viewtopic.php?f=31&t=70636&p=1161767#p1161767 Re: Land, tender, finance - which order to do them in? 3Mar 11, 2014 11:05 pm A bit if a catch 22 situation with construction loans. Lenders won't approve loans without fixed price building contracts and builders won't do any plans, drawing, quotes without having some sort of deposit first. You could try to find out what your borrowing capacity is so that way you have an idea if you're wasting your time or not. Then if within your budget, approach the builder and go through it with them. Cheers Tom Re: Land, tender, finance - which order to do them in? 4Mar 23, 2014 6:13 pm freemike Hi, Maybe a dumb question but we've got to start somewhere! We found a block and a design we like, but in order to finance the block & construction we need a building quote. Is it normal to have the quote drawn up before putting in the offer on the land, or to ask for a long enough finance clause to get the quote done & build+construction loan agreed? The only other option seems to be doing two loans, which I'd rather avoid, in case of valuation problems (not expected but we're pretty cautious people). Or am I missing something! Cheers, Mike Best if you have the building quote ready, so you know the valuation on the building quote is ok and the loan will be approved...but i know this is not possible most of the time; so if you have a "rough idea" on the construction cost or if you can get a preliminary quote on the construction cost than you can apply for 1. Full land loan 2. pre-approval on the construction loan + have a buffer for the construction loan in case the valuation doesn't stack up....this will you will be ok with both loans looking at worst case scenarios( you would kick yourself if you end up with a land loan and not get approved for the construction loan...) Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au I am new to this forum so please bear with me. An NCAT order was breach by our neighbour regarding a retaining wall dispute. He is the owner of a building company and he… 0 2198 you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 54680 Hey. Head to a metal and decide on which profile you will use first. Profiles with larger corrugations can greatly change the appearance of the color in different… 0 3357 |