- NT RudolfMember@nt-rudolfJoin Date: 2012Post Count: 1
I should start off by saying that this is my first post but have been coming to this site for a while and think it is full of valuable information.
This may be a silly question but at which point does a valuation come into play when building. Can a valuer look at a block and a house plan and give a basic valuation off that then you can use that figure when applying for a loan or do you need to wait until it is completed then get it valued to adjust your loan from there?
MattTheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
They will value the property when you apply for a construction loan. They do this by looking at the Building Contract to see what is the included, finishes, etc.
Shahinfredo_4305Participant@fredo_4305Join Date: 2009Post Count: 336
I thought they just take the building contract price?TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271wilko1Participant@wilko1Join Date: 2010Post Count: 510
After council approval for the dwelling is granted, when you apply for the construction loan.
Make sure you get the approval for the construction loan with your valuation on completion done before you make any changes to fixtures and fittings. By this i don't mean you can suddenly say your not putting in the huge wall tiles that you told the valuer you were putting in on the plans.
Ie you might decide that paying the building company 5k for floating floorboards of a substandard quality is not worth it and you wish to do yourself. Because if you didn't include these when applying for the construction loan. the valuer will see the house as not being complete or require you to supply quotes for the new floorboards. which gets a little bit more complicated for banks then a single building contract comprising everything.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Just be careful with your choice of lenders as you will be amazed at some of the lending nuances.
One lender i can think of will only do a construction loan if the plans specs etc are given to them at the same time with the land application (of course they don't tell you that and will do vacant land loans) and another major lender will do a construction loan if the Building quote includes everything from blinds, to fencing landscaping etc.
Who wants to nominate their choice of blinds and curtains up front ……i ask you.
Yours in Finance