Browse Forums Home Finance 1 Sep 15, 2015 8:50 pm Hi everyone I am freaking out a lot about jumping into my first home buying experience and hopefully someone can help me out with an explanation. I've put a 5% deposit on a block of land and signed the land contract which will turn unconditional on finance in 21 days. The land won't title until around Feb/Mar 2016. I have obtained pre-approval at this stage. I've then given the builder a $1500 deposit and signed a pre-works contract. The builder also gave me template 2009 HIA build contract to read in preparation for the real contract that should be generated in around 1 month. The build contract states that you must get written finance approval within 45 days of signing. My concern is how do you get approval when the land won't be titled. Wont the lender need a land title to work out values and the such? Also won't the approval lapse if the land takes more than 3 months to title? and then you need to re-apply which then affects your credit score. Thanks Re: first home buyer very confused about finance on home and 2Sep 15, 2015 9:23 pm Hi, it's a stressful time especially doing this by yourself. Basically lenders can do an approval on the land without it being titled (and you should do this), the approval can last up to 18m with certain lenders. The build loan can also be unconditionally approved with the contract. You need a good broker to pull this together for you. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: first home buyer very confused about finance on home and 3Sep 20, 2015 5:00 pm Hi lost and Happy, Rebecca is on the button with her advice. In respect to the HIA contract given to you by the builder, ensure you understand if FULLY. There are numerous clauses which should be negotiated before signing (don't be rushed) and if you are unsure, get someone who knows check it for you. May I ask who the builder is and where the land is? CR Partners contractreviewpartners.com.au Re: first home buyer very confused about finance on home and 4Sep 26, 2015 9:16 pm I did the same as yourself, put a $1,000 down on a piece of land in July 2014 expecting titles in April 2015. I had preapproval, once I paid the $1,000 my broker applied to my bank for unconditional approval within the 21 day period. When I got the approval, I paid the balance of 5%. The approval has expired 3 times as my land keeps getting delayed. My broker just reapplies for me each time, as long as I don't loose my job or spend all my savings for the house we aren't expecting any problems. With regards to the build, I paid the builder $2000 for prework, once I have the contract signed I will go to the bank for unconditional approval on the build. Hope that helps. DIY, Home Maintenance & Repair Brilliant - thanks so much for that. I didn't want to start pulling too hard on it if there was some other way it was attached, but yep, it was just the paint sticking it… 2 3174 Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5867 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 57577 |