Middle Aged (35-54)
Note: Transcripts are generated using speech recognition software and may contain errors.
There's a lot for a customer to get their head around when it comes to borrowing for the construction of a new home or renovating an existing one. A construction loan gives customers access to the money they need as each stage of the build is completed. Here's what a typical customer construction loan journey looks like. Step one. Apply for the conditional pre-approval. Once pre-approved, the customer can start planning the construction with their budget in mind. Step two, she's a qualified builder. The building contract sets out the cost specifications, terms of construction, building inclusions and a progress payment schedule once signed, the builder will submit the plans to the local council for approval. Step three, finalize the construction loan application. We'll work with the customer to turn their pre-approval into a formal application with all the required documentation such as building contract and a property valuation on approval. The customer will pay their builder a deposit. Step four, get building. Once the customer receives a commencement letter from us, the build can begin. It happens in five stages, slab frame lock up, fit out as each stage is completed. The fielder will provide the customer with an invoice which they forward to us along with an update to their progress payment indicator or PPI form, we'll then complete the relevant checks ensuring that PPI has all the relevant information and signatures on it to match the loan docs. We then release funds from the customer's construction loan for progress payments. If the cost of any of the building stages blows out. The customer is responsible for covering the shortfall. So it's important that they don't make too many late changes. Step five completion. Once completion is achieved, the customer can move in and enjoy their new home. Their home loan will also revert to a normal home loan.