Browse Forums Home Finance Re: Signing contract before getting loan 2Sep 23, 2009 11:24 am Hi Beebob, I am by no means an expert in this area but we are also with CBA and our mortgage broker has advised us that it is all about the valuation. For us this determines how much (80%) we can borrow without the mortgage insurance (which in some instances can be quite horrific). My understanding is that they probably could extend the loan as long as you can service it etc but they will charge you a fee to re-jig the amount. As I said - not an expert..... L Re: Signing contract before getting loan 3Sep 23, 2009 11:39 am I'm in the same situation as you BeeBob. Though I have a tender (Burbank) which has everything on it though I believe there will probably be some extra added later after the land titles and soil test is done (I'm fixed site costs around 8.5k) so any extra I believe I may have to pay myself cash, or ask the bank to adjust the amount. Theres no final drawings or anything, but generic drawings of the house. I believe this will be enough for the bank to value, and if not they can just wait until we get the final drawings. You don't need formal approval from bank to sign the contract, just pre approval I'm sure. Re: Signing contract before getting loan 4Sep 23, 2009 11:54 am We waited until we had preapproval before signing the contract, but the guy from the bank said we had to have a signed contract before they could issue the loan. They sent someone out to value the place before preapproval. We already owned the land outright so don't know whether that changes things. We now have a loan but still no house plans, although we did have a conceptual plan with the contract. We will have a lot of PC items which will have to be funded from our own pocket if we go over the budget allowed in the contract. HTH Kylie getting a home loan 5Sep 23, 2009 12:25 pm Hi Beebob, yes it does not take too much guessing to know that you are going out on a limb by signing a building contract before you have a bank valuation. Also all conditional loan approvals will have "subject to acceptable property" as a condition. Having said that this happens quite often although it is not recommended. We often see home buyers applying for a home loan after buying a home at auction. Re: Signing contract before getting loan 6Sep 23, 2009 1:06 pm Hi Beebob, We used our first tender to get uncondition approval from the bank.I asked our builder (same as yours) to put in provisional alowance for carpet,tank,septic and then deleted it in our final tender and will get all that done through elsewhere. As for upgrades,tiles,studio m i had a budget and stuck to it,yes we have to pay for these things out of our own pocket but we only got what we could afford. Im happy with what we got. kkatt ,i pm you more info Re: Signing contract before getting loan 7Sep 23, 2009 1:36 pm kkatt: wouldn't cba only pay our builder for the carpet, tiles, etc because that is what they valuated? Our tender is roughly the same price as what I am expecting to lend but there are many items taken out and others put in that will go into our final tender. However we did include tiles, carpet and driveway in this initial tender. We have also removed this and will get it done ourselves Villina with Trend facade Sydney Re: Signing contract before getting loan 8Sep 23, 2009 2:33 pm Beebob kkatt: wouldn't cba only pay our builder for the carpet, tiles, etc because that is what they valuated? Our tender is roughly the same price as what I am expecting to lend but there are many items taken out and others put in that will go into our final tender. However we did include tiles, carpet and driveway in this initial tender. We have also removed this and will get it done ourselves We had it as a provisional allowance and our broker told us to give the bank our quotes from the carpet place etc with our builders pak How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11928 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 19108 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16565 |