Browse Forums Home Finance Re: Make Sure You READ Your Contract!! 21May 21, 2015 5:45 pm I am currently going through this process and my bank consultant assured me she doesn't need council approved plans just the plans that are going to council and qoute. So i hand all that over it goes to the valuer and 3 weeks later nothing ....apparently they DO need council approved plans. So angry, feel like everyone is giving me the run around. Hope u have better luck. Re: Make Sure You READ Your Contract!! 22May 21, 2015 6:02 pm What happened with our loan was we had a pre-approval for a total loan amount. We found a block of land we liked and put an offer in subject to soil tests and finance. Once our offer was accepted the bank valued the land and then approved to pay for the land. We had to pay our deposit on this purchase. What was left over of the total pre approval amount was what we could use to build a house. Once we had our plans drawn up etc we had to pay a deposit to our builder to have them sent to a certifier. Once the certifier approved these plans we had to send them to the bank to do the final approval. They valued the house and the land together (luckily for more than we are borrowing as I know others who have not had that luck) then they gave the final yes to go ahead and build. Our bank is CBA so it could be different to how other banks work but we went through a broker as well. It's interesting to read that some places don't need council approved plans to fully approve a loan. We tried to get the full approval but CBA said no we need the council approval. My build viewtopic.php?t=76386 Re: Make Sure You READ Your Contract!! 23May 21, 2015 7:49 pm I see a common theme here... The brokers seem to tell you one thing but in reality the banks want another... I'm with ANZ and it was same as CBA above. I would be confirming with the bank direct not a broker. Re: Make Sure You READ Your Contract!! 24May 21, 2015 7:54 pm Another hot tip only get house and land valued together when you know 100% the house will be started and first draw down within 6 months or you will have to get house revalued again. Re: Make Sure You READ Your Contract!! 25May 21, 2015 9:28 pm All of the banks will give a full approval subject only to the council approved plans - which are provided prior to the first draw down. Normal process is to have the land approved and the build preapproved with the tender. The go to contract and get the full loan approval, subject to the council approval. Then submit to council & start building. Use a specialist broker who specializes in building as it is much more involved. I love it! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Make Sure You READ Your Contract!! 26May 22, 2015 12:14 pm We bought a home and land package but the land will not register until May 2016. We are signing our building contract tomorrow and putting down our 5%. Within two weeks we pay 10% on the land price also for the land put and call. This normal? I have not been asked to provide a finance pre-approval at either contract signing. Building with Fairmont NSW - Carmel 23 Emerald Hills NSW Build Contract signed 23/05 Re: Make Sure You READ Your Contract!! 27May 22, 2015 12:33 pm Shotgun, the onus is on you to have that pre approval done before signing anything or putting a deposit down. From the builder and developers point of view, if you can't come up with the money they keep your deposit and resell the land. No real loss to them. I'd be talking to a broker or bank and getting the pre approval at least so you don't risk them not approving a loan for you when it comes time to pay. Have a colleague that signed without a pre approval 1 year ago and is now in a little bit of a pickle as bank wont approve the size of her loan now that it is time to pony up. Re: Make Sure You READ Your Contract!! 28May 22, 2015 12:35 pm Yes I agree - the preapproval will expire in most cases but I'd want to know I'm looking ok to get the money before I put 10% down. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Make Sure You READ Your Contract!! 29May 22, 2015 12:53 pm Make sure you let them know that your deposit is to be held pending finance. If finance is not approved then your deposit will at least be returned to you. Pre approval, as I am finding out now, is only good if you can use it quickly. I had pre approval and took 5 months to get contract for build. Bank has changed their policies in this time and raised the cost of living buffer so now my pre-approval is pre decline with this particular lender. Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! Re: Make Sure You READ Your Contract!! 31May 22, 2015 2:18 pm Jinx Yeah most of the time pre approval expires before time to draw down, but like bec said, it gives you some measure of comfort that you can afford it. It may in fact be false hope if left too long. Thats our problems right at the moment. We HAD pre-approval, but between then and now the bank has changed their policies which have had a huge impact on what they now think we can afford. Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! Re: Make Sure You READ Your Contract!! 32May 22, 2015 2:23 pm Our broker put our finances through the calculator (the old system and the new, tougher system) several times and said that as we're on track to put down 20% deposit, the finance will not be an issue. He said the same thing, since out land wont register for at least 12 months, there's no point because we would need to have it done at least one more time. Hearing you guys getting the clause entered into the contract just got me thinking. I really don't see there being an issue but you never can be too safe. So I propose adding the clause tomorrow, hopefully the builder will go for it but I see issues coming from them! Building with Fairmont NSW - Carmel 23 Emerald Hills NSW Build Contract signed 23/05 Re: Make Sure You READ Your Contract!! 33May 22, 2015 4:20 pm That's the thing with off the plan, risky as anything can change - and I've seen it happen. There is one lender that issues 18m approvals if all is in place. Depends on the state but I've rarely seen a "conditional on finance approval" clause accepted by a developer for that length. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Make Sure You READ Your Contract!! 34May 24, 2015 12:46 am MrBee I see a common theme here... The brokers seem to tell you one thing but in reality the banks want another... I'm with ANZ and it was same as CBA above. I would be confirming with the bank direct not a broker. Don't throw all us brokers in that category Roomeat Make sure you let them know that your deposit is to be held pending finance. If finance is not approved then your deposit will at least be returned to you. Pre approval, as I am finding out now, is only good if you can use it quickly. I had pre approval and took 5 months to get contract for build. Bank has changed their policies in this time and raised the cost of living buffer so now my pre-approval is pre decline with this particular lender. You are totally correct. There is always a risk with buying either property or land that is due to settle a long way down the track. Bank policies, valuations, financial situations all are prone to change and can leave purchasers in a bind. However the pending finance clause isn't that simple. Put yourself in the shoes of a developer. They are doing a subdivision of say 20 blocks which they have put a fair bit of money on. They aren't going to take a risk on 20 purchasers pulling out of a sale at the last minute a year down the track leaving themselves with a glut of land and no money. Unless it's located in an area where no one will buy, they will likely reject the finance clause and just sell to the next person to come instead. Cheers Tom Re: Make Sure You READ Your Contract!! 35May 24, 2015 7:42 am Well put Tom Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Make Sure You READ Your Contract!! 37Jun 01, 2015 12:54 pm Our process... Put 1K deposit on land to sucure (nearly 5 months ago lol) Put 1K deposit (non refundable) with builder Put another 2K deposit (non refundable) with buiilder Put yet another 6K deposit with builder. Had it written onto receipts that this was now put on hold and no funds spent until we had unconditional finance. We now have unconditional finance so have now let the builder know to proceed. We DO NOT have council approved plans to get to this stage. We WILL need to provided council approved plans to bank.. but that's just a formality. We already have unconditional. Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! Re: Make Sure You READ Your Contract!! 38Jun 16, 2015 9:57 pm Just to follow up on this. We had settlement on our block today. Bask has paid out on this and we STILL don't have council approved plans. Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! Re: Make Sure You READ Your Contract!! 39Jun 16, 2015 10:42 pm Roomeat Just to follow up on this. We had settlement on our block today. Bask has paid out on this and we STILL don't have council approved plans. Of course they did? Block is seperate to house you can buy a block and not have house plans for 20yrs if you really wanted to? Bank won't draw down any money on construction loan until council approved plans is what we have said.. Re: Make Sure You READ Your Contract!! 40Jun 16, 2015 10:51 pm It's all one loan. I don't have separate loans Cheers, Paul (& Lisa) Parkhill 36 by ClarendonHomes in Coomera Retreat H1 Build Thread And Blog Building Blogs List - Go Ahead And Add Yours!! In my opinion just a few more indoor plants and you're done. It's already a lovely space, you've managed a classic style without being too cluttered and that creates a… 1 19556 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16568 Not sure who you're building with, but I moved in recently to a 11month scheduled, 8 month actual build on the South coast/Illawarra NSW 3 5918 |