Browse Forums Home Finance 1 Nov 05, 2014 5:16 pm Hey guys Im a first home buyer and I am thinking of choosing this house with a smaller builder My family are going to help pay for some things like the heigher ceiling and upgraded kitchen appliances I originally thought it would be a good idea to pay for these 2 items separate to the builder as my family will pay and I wont pay interest with the loan etc But I told the builder Ill pay separate and he said: Why are you paying for these 2 items separate? From a bank valuation point of view, it's better to show upgrades like these 2 in there, instead of things like cavity sliding doors, stone to bathrooms, upgrade to breakfast bar, that don't really add value he may be right but I want to know why? Can someone explain this? Re: Include inclusions/upgrades in quote for Valuation? 2Nov 05, 2014 10:20 pm If it's not included into the fixed price contract than the cost will come out from your own pocket ..ie can't be borrowed from the bank at the initial stage. So do you have that extra upgrade cost in cash? Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Include inclusions/upgrades in quote for Valuation? 3Nov 10, 2014 6:45 pm I absolutely agree, show the bank everything, you don't have to borrow more but if its included in the valuation it could even get you out of mortgage insurance territory (if you're there now). The only note to this is the lender will want you to prove you can cover the full contract cost, so you might have to get your family to confirm in writing what they're going to give you. Not a big deal. The more the valuation comes back at the more comfortable the lender is, they work on "loan to value ratios", that is, the loan amount that you're borrowing as a percentage of the value of the home. So if your loan stays the same and the value goes up the % your borrowing goes down and the lender gets happier to approve! Good luck - let us know how you go! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Thanks. There are plenty of builders around my suburb. I'll make sure to do some door-to-door knocking, or note their building details on the temp fence. 4 4737 hey there! π so, itβs kinda common for standard drawer depths to be around 500mm since most cabinets use this size to fit the usual runners… 3 20890 I was being kind to the builder. With the amount charged for the upgrade the builder is probably charging closer to 100% margin. There are a few variables as I… 5 14303 |