I had been doing some research. The areas that I was looking to buy a land to build a house seems to be pretty high in demand. So, we are asked to put a refundable $1000 initial deposit to take the block off the market, and then sign the contract with an initial deposit of 10% of the value of the land after two weeks. 10%! These lands seem to get titled in more than 6 months time, some in 2018!!!! It's crazy! And I am confused. 1. Do we need to have the loan approved by the time we sign that agreement for the land? I feel that is the case, because the pre-approval does not necessarily mean the loan gets approved as far as the internet is concerned. Or is it just that the borrowable amount could be lower than what the pre-approved amount? (say you asked for 400K, and you got it pre-approved, but eventually the loan got approved for only 375K for whatever reason.) I feel that we should always ask for 10% more than what need. 2. I heard from my friend that a loan usually has a 3 to 6 month effective period. If that is true, by the time the land gets titled, the loan is rendered ineffective. What the heck! What are the chances that a loan which was once approved, does not get approved again without any changes to living circumstances? Can it happen? If it can, that's just so unfair. How can someone get a loan in a situation like this? Are we expected to risk our money like that? 3. And he also said we shouldn't put too many loan applications because it can eventually get your applications rejected. Is there a truth in that? Some of the brokers I spoke to cannot give me a realistic figure (doesn't have to be accurate, but say +/-10% off figure) without putting through a pre-approval. I feel that those brokers are no good because if they are going with a pre-approval without giving me a figure, they have chosen a bank which doesn't suit us but them. 4. I believe we need a conveyancer to go through the particulars of the contract before signing, right? I don't have one yet. At what stage do I need one? I feel there are so many things that can get us a burnt hole in the pocket by trying to own a home.