Builder approved by bank

[Snoopy]

Cba have said finance would be possible subject to valuation which I understand and builder to be acceptable to the bank - what do they mean by that; I though any licensed builder would be ok as long as they don't have tribunal orders and cases

 

[westminster]

Cba have said finance would be possible subject to valuation which I understand and builder to be acceptable to the bank - what do they mean by that; I though any licensed builder would be ok as long as they don't have tribunal orders and cases

Generally they don't like the teeny tiny builders, they prefer a builder with a solid history who they know will complete the job and not go bust half way through the build.
It doesn't have to be a massive builder just not anyone dodgy or inexperienced

 

[Longrass]

Never heard of a bank refusing a builder. They wouldn't know how to check. Might be a different story if the builder in a Sole Trader with a name like "Macka the Chippy" or "Slaughters Shed Building"

 

[Peter_Tersteeg]

The question is subjective to the type of deal. If you're building a single property or a duplex, it's not going to be an issue, they'll simply value the land and construction and move from there.

If you're building a 4+ unit development, they'll want to have a lot more confidence in the builder.

 

[Snoopy]

The question is subjective to the type of deal. If you're building a single property or a duplex, it's not going to be an issue, they'll simply value the land and construction and move from there.

If you're building a 4+ unit development, they'll want to have a lot more confidence in the builder.

Thanks for your comments - building 6 t/h. Bank is ok with 3 short listed builders who are all smallish. It's just the uncertainty that the conditions add that makes it hard. Asked for pre approval on the builders before I make my final decision and sign contract. I have used a very large builder previously who got into cash flow problems and dragged the job out. It's about working with builders where you have built a long term relationship if you can

 

[Peter_Tersteeg]

6 townhouses is a commercial deal, so one of the major points of assessment for a finance application is the ability to actually manage the deal to a successful completion within a budget and time frame. In this sort of scenario the builders resume becomes important.

 

[Aaron_C]

With a commercial loan there is no such thing as pre-approval...