Construction Loan with Westpac

[Seaview]

Hi,

Westpac told our broker that our loan application will not go to their valuer until it has council approval. Yet we were told previously that they can give a conditional approval (subject to council approval and valuation) based on signed contract and floorplan.

The problem is that council is so slow I am worried we will have to start loan application all over again once council approve the plans. This may mean having yet another credit check and employment check done. (still amazed we passed the first one). Is there a time limit on details verified and credit checked for approval in principle, which is what we have now.

Any thoughts would be welcome. Especially keen to hear from someone who already got a construction loan from Westpac.

Thanks
Seaview

 

[Evachange]

Hi,

I don't have a construction loan with WBC but as far as I know, (check details) they are not doing pre-approval's anymore. I could be wrong but, maybe someone else here knows better.

Rams could be an option?? They are doing online pre-approvals.

Regard,s

Alex

 

[Rolf Latham]

Hiya

Westpac will do pre approvals for most loans. And they are proper credit approved ones, not the sad excuses for conditionals that some lenders issue.

Be aware though that if you do an AIP, and then convert it 2 or 3 mths later to a full, that new pays etc are required, and usually they will run a new loan decision, thus another CRAA enquiry

ta
rolf

 

[Spectre]

pretty sure we have one on the go at present where they reran the decision but it was due to an 85% no lmi thing and the twits in westpac at adelaide didnt know how to deal with it.
It was chasing the builders letter which was the pain - n'est pas Rolf?

 

[StuartW]

I agree with Rolf. A valuation now isn't any benefit if its likely that council approval will take say 6 months as current approval will lapse.

 

[Kristine..]

Hi,

Westpac told our broker that our loan application will not go to their valuer until it has council approval.

G'Day Seaview

Westpac won't start Progress Payments until they have either the Stamped Plans or the Building Permit.

I have a Land & Construction just about to start drawdown with Westpac now.

The whole application process was run with a signed Contract but only proposed plans and they have just now asked for the Building Permit to be able to commence progress payments.


Lots of Councils are running slow with applications - have you considered a Private Building Consultant? Is this option available in NSW?

I have always found Westpac to be OK with time delays - this particular application was lodged 10th December, 2008 and it is only now at the first (bank) progress payment drawdown

And get your broker to check with their BDM, they certainly should be able to go to valuation with a Fixed Price Quote, proposed plans etc

Hope this helps
Kristine

 

[MichaelW]

Be aware though that if you do an AIP, and then convert it 2 or 3 mths later to a full, that new pays etc are required, and usually they will run a new loan decision, thus another CRAA enquiry

Bugga!

That's my situation at the moment. The Brisbane move has slowed my tender process down so I'll probably be three months into my WBC pre-approval before I have a fixed price contract and am ready to sign the finance documents. At least the pay slips and all that won't be an issue, just the risk of a "new loan decision"...

Should be Ok though.

Cheers,
Michael

 

[Spectre]

G'Day Seaview

Westpac won't start Progress Payments until they have either the Stamped Plans or the Building Permit.

I have a Land & Construction just about to start drawdown with Westpac now.

The whole application process was run with a signed Contract but only proposed plans and they have just now asked for the Building Permit to be able to commence progress payments.


Lots of Councils are running slow with applications - have you considered a Private Building Consultant? Is this option available in NSW?

I have always found Westpac to be OK with time delays - this particular application was lodged 10th December, 2008 and it is only now at the first (bank) progress payment drawdown

And get your broker to check with their BDM, they certainly should be able to go to valuation with a Fixed Price Quote, proposed plans etc

Hope this helps
Kristine

exactamundo