Signing a Provisional quote for a Property Build - anything to worry about ?

Discussion in 'The Buying & Selling Process' started by Geekyebony, 9th Oct, 2019.

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  1. Geekyebony

    Geekyebony Active Member

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    Melbourne
    Hi Guys,

    I am in the process of building a property and i just got a quote from a builder which my mortgage broker needs in order to get a loan pre-approval.

    First question is that, do i, my wife and the builder need to sign that quote before the bank will consider it for a loan pre-approval ? ( going through a broker btw)

    Secondly, is there any possible issue that may arise with the builder if we sign the quote or i'm just thinking too much and should get it signed. Its basically a provisional quote.

    Thanks in anticipation of your responses.

    Geekyebony
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    What did the lender advise ? They will have a policy. I would imagine its all conditional anyway. Ask your broker. A broker may assist to identify a more helpful lender
     
  3. Brady

    Brady Well-Known Member

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    Why would you need a quote before you get a pre-approval?
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No quote needed for finance pre-approval. You just need a rough figure.
     
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  5. Geekyebony

    Geekyebony Active Member

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    Melbourne
    Thanks Everybody...I am a bit alarmed that my broker doesn't know this. I was made to believe that the quote was an absolute necessity before loan pre-approvals can be done. Anyway,i never bothered to sign the quote since it wasn't even a necessity.
     
    Terry_w likes this.