At SW Brokerage, we take care of you at every step of the construction loan process, ensuring a smooth and efficient experience. Here’s a comprehensive guide to help you navigate through each phase of your construction loan journey.
Your first port of call is to sit with us here at SW Brokerage. We’ll run through the steps below to give you a true understanding of how construction loans work. We’ll help you determine what you can borrow, what your repayments will be, and which lender and product best suit your needs, plus most importantly your Cash Flow.
Once we’ve educated you, you can then start the process outlined below.
- Select a Builder
After choosing your new home, your builder will prepare the contract. We will work closely with you and your builder to ensure all necessary documentation and permits are in place for a seamless construction process. Need help finding a builder? We’re aligned with Bold Living and can assist you.
Visit Bold Living for more information.
- Supply Documentation to Your Broker
Once signed, send us your conveyancer’s and builder’s contact details. We will gather your contracts and build specifications, along with any quotes to be included in your loan.
- Supply Variations to the Build Contract
Inform us of any changes to your construction contract as they can impact the valuation, loan approval, and the amount of funds required. Variations not included in the loan approval will likely need to be covered by you.
- Lodge Application
We gather all your lending documents and lodge your application. We will also check if you may be eligible for a First Home Owners Grant and guide you through the application process.
- Settlement and Payment
If your loan includes land, the funds will be released to settle the land purchase. You will need to cover any shortfall before the lender releases funds. Your upfront contribution ensures the funds are processed smoothly. We also coordinate with the builder to obtain the necessary permit pack for the lender before construction begins.
- Progress Payment
Once construction starts, you will receive invoices from the builder, known as “progress payments.” Forward these to your settlements coordinator immediately to arrange payment. Some lenders require specific progress payment forms, while others accept the builder’s invoice directly. Inspections or valuations are needed at the base and final stages, and sometimes at other stages, depending on the build’s cost.
- Have Your Deposit Handy
Any variations not included in the loan or agreed upon after loan approval will need to be paid directly by you to the builder. Construction can be a lengthy process, but your settlement coordinator will guide you through each stage, address any discrepancies, and liaise with the lender to ensure progress payments are made.
- Final Progress Payment
As construction nears completion, allow time for the final payment to be processed while the lender organizes a final valuation. You will need to provide a copy of the Certificate of Occupancy and Building Insurance. We will collaborate with you and the builder to set a handover date.
MOVE IN TIME….
Your Next Project
We stay in touch throughout the life of your loan and are ready to assist when you’re prepared for your next project. Our ongoing support ensures that you’re never alone in this process.
By following these steps and partnering with us, you can ensure that your construction loan process is smooth and stress-free. We are here to support you every step of the way, making your dream project a reality.
So why not contact SW Brokerage today to see if a construction loan works for you? We can even put you in touch with someone from Bold Living to help guide you along the way. With us both in your corner, you’ll be well-guided and looked after each step of the way. Start your journey with confidence, knowing you have a dedicated team supporting you from start to finish. Contact us on info@swbrokerage.com.au or 07 3371 1603
