Browse Forums Home Finance Re: Does Bank require building permits before full appproval? 2Sep 01, 2009 3:37 pm http://buildingatfreeling.blogspot.com/ Building at Freeling Estate Adelaide MKII WE ARE NOW OFFICIALLY FIRST HOME OWNERS AND WE BUILT A NEW HOME FROM SCRATCH Re: Does Bank require building permits before full appproval? 12Oct 13, 2009 8:50 pm Hello Everyone, In my experience as a lender and broker I have found that formal approval can be obtained without having full permit approvals. Plans and specs are a definate must in order for the bank to arrange valuation etc. These are provided to the valuer who in MOST cases will look at it and come back with.. Land purchase price = X dollars and the construction contract = Y dollars therefore value is X+Y. In some cases they will be slightly different but rarely. In order for full approval banks need to check 3 main areas. Income/Employment, Credit report, Valuation/Security. If these 3 add up. All is good for formal approval. Income and credit report are done up front and are the simplest. Valuation is based on the land plus the specifications/construction contract/plans. Provided that the Council Approved plans are the same as those submitted for valuation then there is usually not an issue. Realistically your builder SHOULD reasonably know what they can put on your block of land prior to council submission. After soil testing and engineers workout in order to put the contract together they have a pretty clear idea of what will be allowed and what wont be. To go into CBA alone. They require only 'Tender' as they put it .. laymans terms a construction contract/specs etc. to go to unconditional approval. However, prior to issuing their commencement letter they require the council approved plans and insurance notifications etc. Regards, Trent Hi Kristy Around $1.7-1.8m or around $4,600/sqm. if you PM me your email I will send you a break up in a spreadsheet so you can get an understanding of the costs for… 1 758 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 9180 Building a fence now will help limit people dumping rubbish and soil on your property. Many houses in suburbia on small lots have fences up before a build. I moved into a… 1 3570 |