Ready To Build? Key Documents for Lender Approval

If you're planning to build a new home in Coffs Harbour, Sawtell, Macksville or anywhere on the Coffs Coast, getting approval for your construction loan is a key step. But before lenders give you the green light, there are several documents and details they'll want to review. Here's a breakdown of the essentials:

1. Building Contract or Tender

The first thing lenders will need is your building contract or tender. This contract provides the total cost, payment schedule, and the terms agreed upon between you and your builder. It is crucial because lenders need to verify the financial scope of your project.

Why It’s Important:

• It provides a clear agreement on costs and timeframes.
• It shows the lender a structured plan of what they are funding.

2. Detailed Finishes and Specifications

Lenders will also ask for detailed finishes and specifications. This document outlines the materials and quality of finishes you’ve chosen for the build. It includes everything from flooring, cabinetry, and paint colours to appliances.

Why It’s Important:

• It helps the lender assess whether the property’s value matches the loan amount.
• It ensures all specifications align with the building contract.

3. Building Plans

The building plans are a crucial element that includes the architectural design, layout, and structure of your future home. These plans provide lenders with a visual and technical understanding of the project.

Why It’s Important:

• Ensures the property is constructed according to local building regulations.
• Allows the lender to confirm that the build is financially viable.

4. Details of Any Variations to the Contract

Throughout construction, there may be changes or variations to your original contract. These could be upgrades, layout adjustments, or additional features. Lenders need documentation of any variations to ensure these changes don’t drastically alter the overall budget.

Why It’s Important:

• It helps the lender reassess the cost and value of the property if changes occur.
• It ensures the loan covers these changes if necessary.

5. Quotes for Non-Contracted Works

If you're planning to add features outside of the building contract, such as sheds, landscaping, fences, or pools, lenders will want to see separate quotes for these non-contracted works.

Why It’s Important:

• Lenders need a full picture of the project costs.
• Allows them to determine if you need additional funds or if you’ll cover these costs separately.

Final Thoughts

Whether you’re planning to build in Nambucca, Yamba, Maclean, Grafton, or anywhere along the Coffs Coast, being prepared with the right documents and information is crucial for a smooth loan approval process. By having your building contract, detailed finishes, plans, and any quotes for additional works ready, you ensure that lenders have everything they need to assess your project.

Contact North Coast Lending
Email us at reception@northcoastlending.com.au for expert guidance on securing your construction loan and navigating the building process.

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