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Building Tips and Traps To Avoid Home Loan Issues

Insist on true fixed price contract

Many builders say they offer fixed price contract but then have so many basic items missing from their final pricing that often you may be forced to increase the price just to cover these essential items that are so called extras with some builders.

Grady Homes actually does have a genuine Fixed Price Contract with all of your inclusions and build requirements because we don’t like nasty surprises, and we’re sure that you don’t either.

Take your time on the details for your home

It is strongly recommended that you deal with a builder that is willing to take the time with you in the early stages to go through all aspects of the home so if any changes or special items are required then this can be included in your final pricing before fully applying for finance.

It is important not to rush this stage because if you make changes to the home that affect the price after applying for finance, before taking ownership, you will have to pay for these changes yourself when the home is complete.

Ask how long will it take to provide construction documents?

Ask your builder this important question once you have made any required changes and are happy with the initial price estimate provided. Avoid any delays obtaining full finance approval without these documents.

Many so called “local builders” only have a very limited local staff of sales people and have to outsource much of the behind-the-scenes work to other companies or have to send to a head office in another location.

We have seen many clients at their wits end due to the time delays from dealing with builders in this situation, on some occasions almost missing out on their dream block of land as a result.

The Grady Homes team of consultants, draftsmen, builders, tradesmen and support staff are all based in Townsville. We have all the contact details you need to reach them right here on our website for whenever you need them to ensure your building experience is a prompt and smooth one.

Why is a guaranteed build time important?

Again this is one of those things that many builders say they offer, but only a few truly deliver in our experience.

It is vital that your home is built in a timely manner. During the construction period you will be paying interest only repayments on your home loan whilst you may be still paying rent. These interest only payments are much less than your full loan repayment initially but increase as the home is built. The highest amounts are towards the end of the construction phase and are often at higher interest rates.

We suggest asking the builder to give you some assurances around this to avoid unnecessary stress and that they have penalties in place to compensate you.

Grady Homes has a guaranteed 5 month build time for the majority of our home construction projects. If we fail to deliver on time, we pay YOU for every week we are delayed!

“You get what you pay for”

Price is obviously a key consideration when making such an important decision as to build a new home. It is equally as important to ensure you are getting true value for money and are not over focused on simply getting the cheapest price.

From our experience with dealing with home loan clients for over 10 years, it is clear that all home builders are not created equal. We recommend that you ask your builder about the above mentioned points and also about things like their builder warranties and process for warranty requests, i.e. do these have to be referred to a head office somewhere else or can you speak to a local person to have these items addressed quickly.

We have dealt with many clients that have let us know that the sweetness of what seemed to be a good deal at the time was quickly soured by very poor after sales service from the builder they chose. A recent client regretted using a particular builder after finding out that their home structural warranty is non-transferable which will be a draw back in the future if they decide to sell the home.

For more construction and home loan advice, contact our Home Loan Hero – Rob Frew – from Salt & Pepper Home Loans.

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