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Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    Hi all
    my question is about procedure. We are about to build a house, we bought the block in Dec with a construction loan, before we started the deal the bank told us that there was enough funds avail for the house too. Now we have done the prestart with the builder and its time to cough up the finance. we rang the bank today and they told us to submit a new application….is this normal?
    I feel like we’re really getting messed around here.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Phil,
    This is very strange, as it sounds like you had a construction loan in place when you purchased the land,
    did you get unconditional approval on the construction loan from the bank?
    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Victoria

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    unconditional for the block, for the house they sent me a letter asking for contract, building permit (the builder says finance first, then permit), builders insurance (finance first again)and a home owners warrent( again finance first says builder)
    I dunno …

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Phil,
    In this case the problem may be with your builder,
    The Bank will need contracts, insurance etc before they will commit to a construction loan, another condition to be aware of, the construction period is usually Twelve Months,
    Regards
    steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Victoria

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    the builder has produced the contract, and all they need is a letter saying that the money will be available, butt covering so they don’t go too far then find out they won’t lend the money, like a pre-approval I guess.
    The builder is part of J-corp- the biggest builder in Perth, and they say they’ve never seen those conditions from a bank before. by the way the bank is Xplore Capital, heard of them?
    And is the 12mth building time a problem?
    Thanks for your help Steven

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Phil,
    It sounds like they have you over a barrel, You have two choices put in another application or try another lender, It would also be a good idea to check Xplore capitals construction period, conditions,
    The builder should have insurance contracts etc you won’t get a construction loan without these,
    The loan will be drawn down in stages, so check with Xplore on inspection fees,
    If I can help let me know, Good luck Phil let us know how you get on.
    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Victoria

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of Mama2MiaMama2Mia
    Participant
    @mama2mia
    Join Date: 2003
    Post Count: 115

    Hi Phil,

    We had huge problems during the initial stages of our land loan and construction loan also……i’m a little confused by your situation but we had to do 2 seperate loans (1 land loan and 1 construction loan) when we applied (by the way, we weren’t told this….because i specifically asked the bank if we were going to be charged any additional fees for when we start building and they said no when in fact the construction loan was a completely new loan combined with the land loan hence another application fee and mortgage stampduty etc was charged again).

    When we had everything organised with the builder we went to the bank and said the house is going to cost us “x” amount, we have “y” money of our own that we can contribute hence only need to borrow “z” amount from the bank for the construction of the house. Our builder said he couldn’t start until he got confirmation from the bank that we were going to be lended enough money to cover the costs of the contract and would not start until he got that confirmation. That confirmation took at least a week for us to get because they have to go out and do a valuation etc.

    After this, a new loan was drawn up for the combined land loan and construction loan so from what i understand from your post, i think the same happened with us and we’re with ANZ.

    Hope this helps.

    Kim

    Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    tnks Steven, I spoke to a diff. person yesterday and they said they would send a letter giving confirmation of the funds.
    Kim – same situation I think, the builder is frustrated because they build 000’s houses per year and they havn’t seen this problem before. About the new application, I realised that the first one has expired – they only last for 3 months and buy the time the block was settled…well you know.
    thnks for support guys

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Thats great news Phil, Well done,
    Regards
    Steven

    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Victoria

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

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