Jul 10, 2017 12:05 am
Just had a quick question in regards to applying for a construction loan.
My wife and I have land that settles in December 2017. Where we will probably start paying this land loan around Dec 2017- Jan 2018.
We are looking at locking in prices with Metricon for 8 months from September this year, where we want to start building in May 2018.
My question is, if we plan to build in May 2018. When would we need to start applying for a construction loan? And when would we need unconditional approval for the construction?
Can we wait till April 2018 to get unconditional approval for the construction? Or do we need this from when we pay the first holding deposit?
Help would be much appreciated
Re: Time Frame of when to apply for construction loan?2
Jul 10, 2017 11:23 am
Generally approvals last around 90 days now, most often you would want to be ready to rock as soon as you settle on the land which means getting the approvals done in advance.
Do you have conditional approval for the build - approval that says you could potentially borrow that much subject to the valuation being ok? I would be getting this done ASAP so no nasty surprises. That said, lending is changing rapidly so you may still want to get the unconditional approval ready a little sooner than you mention so you have time to make any changes if necessary.
Best of luck with the build
Property crazy expert mortgage broker, love building new homes!
Two Red Shoes mortgage broker
Re: Time Frame of when to apply for construction loan?3
Jul 10, 2017 3:51 pm
There are some lenders that will allow you to construct your property and drawdown a loan up to a year after land settlement. So if you have all the drawings, contracts, etc with land settlement in Dec/Jan and you know it will be finished by the following Dec/Jan, then you can get it organised and unconditionally approved the same time as the land even if the start build time is a few months down the track.
Phoenix Loan Consulting
www.phoenixloans.com.au | Ph: 0409 799 372
Sign in or Join to reply to this Topic
DomoKBConstruction loan pre-approval expiryConstruction loan pre-approval expiry
Thanks for your replies everyone. Yes you are all correct, the bank wants the final contract price. They said if the pre-approval expires before we get the final…
LN28Deck Construction - Allowing for future Pergola constructionDeck Construction - Allowing for future Pergola construction
Hi, If you are building the deck first we will generally run the posts up for the patio and incorporate these as part of the deck. That is the preferred method as you know…
Met_LibertyVerveHybrid Steel Frame vs Wood FrameHybrid Steel Frame vs Wood Frame
Hello Thanks for your response. By Hybrid I meant Steel wall frames with timber roof trusses. Evidently the wood roof trusses allows for tiled roofing. Thanks
KaziWhite frame or Chrome frame Downlights ?White frame or Chrome frame Downlights ?
Chrome looks better hence it's more popular. Also a bit more expensive Building Ambassador 41 Wisdom Homes DA 17 Jan 2018, Slab 19 Mar 2018, Frame 20 Apr 2018, Bricks…
bankHow long do the estate's "design guidelines" apply?How long do the estate's "design guidelines" apply?
Ours are ten years, but there was no penalty outlined so I'm not sure what they could do. We'll be planting our tree as far from the house as possible.