Browse Forums Building A New House Re: Construction Loan Pre-approval 10Sep 06, 2019 10:51 am Cooky Thank you so much for sharing your experience. We were given a formal indication but no actual pre approval as we hadn't selected our builder. Difficult to do with a custom build - I wasnt sure it would get approved by council despite the size being the only non compliant issue. I'm extremely reluctant to sign a HIA contract to find we are then unable to pay for the build. I don't know why our Broker is being so difficult around this. cooky - it does seem odd that your broker is reluctant. My broker is amazing. He was on top of it from the get go. I am in Sydney, if you need broker contact details, happy to share his details. He is also building a custom house at the moment so you'll have something in common If you don't have a Tender right now, that shouldn't stop you from getting a Pre-Approval. Basically, a Pre-Approval is just an indication of how much your borrowing capacity is. Definitely should get one before signing anything! Re: Construction Loan Pre-approval 11Sep 06, 2019 11:01 am ASJ1981 Cooky Thank you so much for sharing your experience. We were given a formal indication but no actual pre approval as we hadn't selected our builder. Difficult to do with a custom build - I wasnt sure it would get approved by council despite the size being the only non compliant issue. I'm extremely reluctant to sign a HIA contract to find we are then unable to pay for the build. I don't know why our Broker is being so difficult around this. cooky - it does seem odd that your broker is reluctant. My broker is amazing. He was on top of it from the get go. I am in Sydney, if you need broker contact details, happy to share his details. He is also building a custom house at the moment so you'll have something in common If you don't have a Tender right now, that shouldn't stop you from getting a Pre-Approval. Basically, a Pre-Approval is just an indication of how much your borrowing capacity is. Definitely should get one before signing anything! Thank you! I've emailed our bank contact to push this forward. My Broker said "we cant get any approval, unconditional or otherwise without DA approved plans and a contract. My suggestion to you is to find the cheapest builder and go with them and once your plans are approved we can get the approval" Gobsmacked. Pretty bad advice. He was great during the land loan process...not sure what is going on now. Re: Construction Loan Pre-approval 12Sep 06, 2019 11:14 am Cooky Thank you! I've emailed our bank contact to push this forward. My Broker said "we cant get any approval, unconditional or otherwise without DA approved plans and a contract. My suggestion to you is to find the cheapest builder and go with them and once your plans are approved we can get the approval" Gobsmacked. Pretty bad advice. He was great during the land loan process...not sure what is going on now. cooky I am pretty speechless with that statement from your broker I have just PM'd you The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20301 The fastest thing a builder will do is bank your cheque, those systems work perfectly with lightning speed, everything else is slow burn. Just the way it is. 1 9567 1 3552 |