Browse Forums Building A New House Re: I'm confused about how construction loans work. 4Jan 15, 2014 9:53 pm Build thread: viewtopic.php?f=31&t=65085 Re: I'm confused about how construction loans work. 5Jan 15, 2014 9:55 pm Build thread: viewtopic.php?f=31&t=65085 Re: I'm confused about how construction loans work. 7Jan 16, 2014 12:47 am building thread: viewtopic.php?f=31&t=65845 Re: I'm confused about how construction loans work. 8Jan 16, 2014 11:40 am Build thread: viewtopic.php?f=31&t=65085 Re: I'm confused about how construction loans work. 9Jan 16, 2014 11:58 am This was 9 or 10 years ago... I had a contract for say rough example - cant really rememember back that far!: $150,000 - building $70,000 - land $15,000 - landscaping $15,000 - flooring and blinds Our mate was a landscaper so we knew we wouldnt be using that quote, he just beefed it up for the bank. Same with the Flooring and blinds, we had it quoted on porcelain tiles and top quality carpets. Same with the blinds. At the end of the build the bank paid the builder, we'd already settled the land and the left over was the figures on the quotes of landscaping, carpets and blinds. Our mate and us did the landscaping for a 1/4 of the "quote" and we had organised with another flooring supplier to do Laminate timber and carpet in the bedrooms, at a much cheaper rate than the quote submitted to the bank. We were still able to draw down on the full approved amount, It was just deposited as a full lump sum. We kept the unused funds as rainy day money, just in case something came up... Sort of like a buffer. We arent doing it to that degree this time, as we have a lot more savings aside than last time! Our flooring quote submitted to the bank is what we're using, same with the deck/pergola and there's probably going to be some wiggle room, some left over in the landscape quote, but thats it. We had the 2nd valuation the day or day before? handover, so none of the carpet/flooring or landscaping was even done then! They just checked the actual building and i'm assuming they just guessed that the stuff quoted would be done... Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: I'm confused about how construction loans work. 10Jan 16, 2014 12:52 pm We are in a similar situation. We have a mortgage for the basic build and a number of fit out items. (Our bank actually requires some fit-out to be included in order to have the final house at a certain finished level). We also gave quotes that were in the middle range of those we had collected... It is important not to over inflate these too much as this can work against you as the valuation doesn't match what you are supposedly paying and the bank or LMI provider (if you need LMI) may reject the mortgage as they feel you are over captalising. Our broker told us that we would have the money available to pay for the items we have included in the contract (these items must be of the quality suggested. For instance if we said we would install solid wood floorboards, we can't change this to laminate or carpet, if we said we wanted reverse cycle air con thoughout, it isn't possible to put in one or two split systems instead etc). That is so that the valuation remains the same, as obviously these details were considered to add a set value to the overall build. Any money that remains, after the final payment is made, will then be deposited into our account to do with as we please. However this will not be released until the bank is satisfied that we have completed all the items that we factored in in the original valuation. My Building Thread:https://forum.homeone.com.au/viewtopic.php?f=31&t=66153 Re: I'm confused about how construction loans work. 11Jan 16, 2014 3:16 pm You will probably find the bank's valuation is much less than the total cost of the build. We ended up having to find some extra money for variations that were done after the loan was approved. So have some money put aside in case this happens for you1 Our build: viewtopic.php?f=31&t=64705 If this is a custom build then I would expect the builder to set out the door frame closer to the wall to avoid the gap between architrave and the wall and or specify… 9 8879 I posted the floorplan on Houzz.com forum and got some really good ideas and advice from people there. Then we reached out to a couple of renovation companies and one… 5 11168 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 5054 |