So you’re thinking of building a new home? Getting finance is one thing, getting the right finance is another.
There are lots of pitfalls along the way and we at VFG know them all and can help you avoid them.
Here are just 20 things you should know:
- Save thousands! Do your sums right and you can save on costs by arranging your settlement and construction in just the right way. We can show you how.
- Give yourself time. What with statutory approvals and waiting for your working drawings and contracts to be prepared, it can take up to eight weeks to get finance approval.
- Some lenders will only give you a loan for a ‘complete’ house and land package. In other words, the house must be completed with landscaping, floor coverings and window treatments.
- If you want to choose your own finishing touches, like carpets and curtains etc, make sure you choose a lender who will allow you to do just that. Some won’t.
- Some lenders will let you use a revolving line of credit to build your home, leaving you in control. Do you know who? We do.
- Be careful out there! If your finance isn’t structured correctly you could end up paying double loan fees. Check with us before you sign anything.
- Don’t get caught having to fork out for extras such as water tanks, sheds or septics. These can be allowed for in your loan application. We’re only a phone call away. Call us.
- Not looking forward to renting while your new home is being built? Did you know you don’t have to rent? At VFG we can show you how some lenders will give you a discounted home loan rate so you can stay put while you’re building your new home. This avoids double moving costs, hunting for a decent rental place (one that allows pets), paying bonds, wasting money on rent and disrupting your children’s schooling.
- Want the security of a fixed interest rate? Did you know there are some lenders that won’t fix the rate while you are building?
- Want to minimise your loan repayments while you’re building? We can show you how.
- Be careful with the ‘variations’. Those little changes you make at pre-start might have to be paid for out of your own pocket if you don’t get the right loan. And if you’re unable to provide written evidence that you have the finance for those variations within a set number of days, the builder can terminate your contract. We can show you how to avoid it.
- Did you know you can build a home with no deposit? Call us, we’ll tell you how.
- If you buy a block of land with the intention of building at a later date, you can avoid unnecessary re-financing costs if we make sure that the lender will fund the construction as well.
- Some lenders will give you a loan for the land, but not for the construction of your new home.
- With some lenders the size of deposit they require depends on where you want to build your new home.
- Not all deposits are the same. Some lenders want bigger deposits that others. They can vary from 0% to over 30%.
- Your home loan can be arranged before you sign any contracts. Or, if you prefer, you can find out the maximum amount you can borrow before you even start looking for a new home.
- With a little help and guidance from the construction finance experts (that’s us) your home loan can be tailored to suit your particular needs, and with a minimum of fuss, so the whole process goes as smoothly as possible.
- Need a little extra? While you’re organising finance for your new home you can also slip in a little extra for a holiday or new car, etc. Anything’s possible when you seek our expertise.
- Why not build two homes while you’re at it? We can show you how to get your finances right, and how to do it.
At VFG we do more than just organise the best home loans; we’ll be your partner helping you to achieve your future financial goals.
