Dear All,
Just quick question, if our mortgage finance has been approved unconditionally, and our condition changed (eg. getting a new job, moving interstate or overseas, losing job, moving out to a new place hence affecting serviceability, etc.), will it void the unconditional finance from the bank? I will settle in 6 weeks time, and my circumstances may change before I settle but I have been granted finance unconditionally by the bank.
Thank you,
Ricky
property_avid | NA
It will affect the unconditional approval; but that doesn’t mean it’s the end- some changes are still within the banks standard.
1. Depend what the change is?
2. Which bankRegards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Apologies but can I jump in on this post. Got a similar query.
Michael, our application for contruction loan has just been approved. But i understand it will still take some few weeks to get the docs from the banks signed and the for the funds to be availabe. We had an agreement with the builder that I can pay for the 5% deposit so they can start with it right away, and he will credit the amount back once bank will have the funds available. With this scenario, it is possible that the construction would have been on the next stages. My question is will the bank still provide for the funds for the previous progressive payments issued by builder even if they have not inspected those construction stages. Because my understanding is bank will normally inspect the construction stage first before issuing the progressive payment for that stage.
Your opinion is much appreciated; before I pay for the 5% deposit.Correct way is for bank to send out the the valuers to do initial valuation; should you jump this step- it’s ok but you should let the bank know BEFORE you place the 5% else it will delay the process…also note the bank will NOT pay you back directly….they are only allowed to pay the “invoice” / builder direct.
But if your read your loan docs; and the”progressive” payment outline; the first payment for the foundation is paid by you most of the time anyway.
Ie;
6 stage progressive payment: ( the % are the amount of the loan on average) — a Valuation is done at each stage, sometimes depending on the bank and the construction amount some step may be skipped in terms of valuation.
1. Preparation – palns, permits, soil test, drive way,connection ets — 5%
this is what you pay most of the time out of your “deposit”
2. Base – Slab, Foundation – 12% — depending on your LVR. you may be paying for this part as well first
3. Frame- House frame —Inspector and surveyor sent out – 10%
4. Lock up- window, locks, roof , insulation – 21%
5. Fixing – Plaster, kitchen, Bathroom , Plumbing and electrical – 39%
6. Completion- Fencing, Site clean up, – 13%Your only 2-3 weeks away from finally release and instruction from the bank…wait it out.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
The builder has included in the fix price the preparation costs. We actually have already done the permits (except the building permit which will be done by builder), including soil tests, pit and water connections.
If it's about 2-3 weeks more to go, I might as well pay for the 5% deposit coz it will take probably about the same time for the builder to schedule the demolition team, clear the driveway and rear, and for the land surveyor to put it the marks.
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