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Ashley  P

WA 6035

Feb 18, 2018

Ashley  P

WA 6035

Feb 18, 2018

Feb 18, 2018

Hello. Purchased land after selling our 1st home. Paid a deposit of 56k on land valued at 265k and now want to build our house on the land with construction price of 406k. Thought we had pre approval by our bank who our current loan on the land is with, only to be told the suburb our block of land is within now requires min 10% lvr and not prepared to merge the loan of the land and intended build construction. So we told them to jam it where the sun doesnt shine. We spoke to another broker and without making a formal application to any lenders he sought up front valuations only to have them lowball us with valuation around 70k under construction cost. This we found out was because our intended builder didnt include approx 90k of promo items into the building contract, pcq or adenda. We're seeking Valuation from our builder for all items included in this promo to enhance finance approval from a lender thats not going to give us a loan thats over 5-5.5% taking advantage of us because of the unusual situation. Please note we paid $58k on the 265k if land****.the construction cost is 406k****.total cost 671k minus 58k deposit ==613k plus mortgage insurance... separate savings of nearly 30k but not too keen on dipping into that as its the money intended to finish last bit of house. My wife earns 25k Annually and myself $125k with combined income over $150k annually. We have no credit cards, no personal loan or car loan debt...we spend approx 2k monthly on all living expe****. there a bank who will give us a go without taking advantage of us and will give up front valuations without making formal finance applications to be rejected which will give us poor credit ratings

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Morris

1 year ago

Hi Ashley, Ok...your situation is not strange to me, there are a lot of policy variances between one lender to another. Based on the information provided and without knowing the details and exact location and size of your land, the following will have to be confirmed first: 1- land in Yanchep must not exceed 8 hectors as most lenders will only lend up to 80% for land above the 8 hector size and no funding available for land above 50 hectors, unless I take you to a none conforming lender. 2- sense you already own the vacant land, I will do your construction as an improvement loan, which means that we can get a valuation based on the home and land value not just the building contract valu****.this will factor in all features and inclusions in the house that will determine the final value of the house based on the current market and surrounding suburbs performance. I can also get your refinance and construction under the same package which means that we can go up to 95% LVR including LMI. You are currently on 91.5%LVR and we need to allow between 2-3% LMI Costs which can be capped onto your new loan. I am confident that your scenario is achievable and will not lodge your application prior to completing a full credit assessment and valuation to confirm your chances of a successful outcome.

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Lawrence

1 year ago

Hi Ashley, Thanks for the detailed description. On the face of it I will be able to obtain an upfront valuation, match you with a suitable Lender and also structure the loan to minimise your Lenders Mortgage Insurance contribution. Please contact me if you wish to discuss your options.

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Tania

1 year ago

Hi Ashley, I have accreditation with over 30 different lenders. I’m confident we can get a solution for you. Please call me to chat further

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Russell

1 year ago

Hi Ashley. With the information given (thanks for the detailed synopsis) I believe there should be a suitable resolution for you. I'm very happy to look at this with my 30+ lenders and ensure the valuation and policy stacks up prior to any credit enquiry. Please make contact and I'll get some further information from you to ensure i understand fully your requirements and situation.

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Michael

1 year ago

Hi Ashley there is a way we can utilise the $30k and get the house finished. Please contact me on find a broker to discuss further.

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