A building loan need a specialist mortgage broker

Building a home is undoubtably – no question at all – one of the most stressful adventures you can consider undertaking.

So many unknowns – how will it all pan out? Does that bench really go with those cupboards?  Will my furniture fit here?

I know in my own first build I focussed on storage, you can never have enough storage – but I ended up with an inadvertent corner and some cramped conditions in my bathroom.

These are relatively small things, we all fear the dreaded call “we’ve hit rock, site costs just blew out”.

There’s enough can go wrong without invoking drama – right? So we pick quality builders with a good reputation and reliable track history. Well I am telling you that you need to so the same with your home loan provider, and your broker.

Some brokers, myself included, specialise in construction loans – I always have a build in progress and I do tens of them every year. I know what I am doing!

Here’s some of my tips to taking the stress out of your building loan:

1. Get a full approval for your land loan, and a pre approval for the maximum you could spend on your build. This way you can secure and settle on your land while you’re waiting to finalise the building quotes.
2. Get quotes for every imaginable extra – and use your imagination! We’re talking driveways, screens, blinds, landscaping, and supply all of these quotes to your broker up front – they can affect your valuation, in a good way!
3. Add into the tender and contract a generous allowance for what the builders call “post contract variations”, for some builders this is upgrades to your electrical items, and others this can be the kitchen. If you have an allowance built into the contract it’s much easier to get a good valuation upfront, trying to come back and increase a valuation is an uphill battle.
4. On the subject of valuations, a broker has access to multiple valuers, this can be handy especially in new estates. If you get an unexpected result your specialist building loan broker will know just what to do.
5. Finally, some lenders are much better at construction loans than others, it’s essential you let your broker guide you in the right direction.

Thats building loans in a nutshell, if you want to know more about my tips for building in general checkout my other blog post over here.