The thought of building your new home from the ground up can often be daunting and quite off-putting. Where do I start? Who do I talk to? Will this take years to do? The short answer is no. Depending on what your intensions are, the size of the land you plan to build on and of course, your budget, the construction process can be as little as 6 months. Building a house is actually a very exciting process and is something you’ll never forget. And it’s easier than you think.
Peter Bisby from Redink Homes Midwest has shared with us the 11 steps for building a home with one of their House and Land Packages.
1. Speak to a Building Consultant
Contact your local builder who will then direct you to one of their Building Consultants who will meet with you to discuss what your building intentions are. Your Building Consultant will be there to help with the entire process of your building project. So the first step is to get the ball rolling, work out what sort of home you are after and how big you are planning to build. This will give the Building Consultant a rough indication of what your expected budget will be.
2. Establish a budget and obtain finance pre approval
Once you have established your budget and have indicated what you are willing and able to spend, you’ll then need to check if your lender will approve your loan before you choose a block of land and start planning. Dennis Smallwood from the Mortgage Gallery gave us an insight of the process of getting finance pre approval and the criteria that must be met.
Generally, mortgages require a 5% deposit that must be saved over a minimum of three months. When meeting with a mortgage broker, you’ll need to bring any bank statements or documents in with you to prove that you have saved that amount over the last 3 months and are capable of paying off the loan. Dennis explains that you generally have to be employed for over 6 months to be considered for pre approval, although every lender is different, so the time frame may vary. All applicants must be over 18 years of age.
If you’re at the stage of getting finance pre approval, The Mortgage Gallery is more than happy to assist you. If you meet the criteria, you can be pre approved in just a week.
3. Choosing a block of land and making an offer
Once you have got finance pre approval, your Building Consultant will then present you with a range of blocks that are available. Once you have carefully selected an ideal block of land, you’ll then need to make an offer and if it is accepted, you’ll need to notify your Building Consultant and your bank afterwards.
4. Arrange a settlement date for the block of land
Once you have made an offer that has been accepted, you'll have roughly 28 days to obtain finance approval. The settlement date is approximately 28 days after this, the date which the bank pays for the land and it is yours to build on. It is important to keep liaising with your builder in the case of a house and land package. A settlement agent will help process all this for you.
5. Have the builder test the soil prior to the settlement date
Once your offer for the block has been accepted, you'll need to contact your Building Consultant straight away. This gives the builder enough time to order a contour survey and a soil test in order to product working drawings and contracts before settlement date. This is one of the most important steps when building your home. Your builder will then enter you into a preliminary agreement before you sign a contract.
6. Work out when you would like to move into your new home
It’s very important to plan ahead and make sure that nothing will get in the way of your building plans over the next few months. Once you have planned ahead and have worked out roughly when you are planning to move in, your Building Consultant will work with that time frame to make sure that their contractors are available for the job and it is built on time.
7. Choose a design from the builders range or design a custom home
Your Building Contractor will have a range of house designs to choose from. This is a very exciting step when building your home, because it’s the first step towards reality and you can get a clear picture of what your house will look like.
8. Get approval from the local authorities
The builder will then seek the appropriate approvals from the local authorities to start building. Once you are happy with your plan and the design of your home, your lender will then take this to the bank and organise a loan. A loan can only be granted once all the designs and plans have been organised. This will give the bank an idea of exactly how much money to loan you.
9. The construction begins!
Once the local authorities have granted approval, it is now time to start building your home! You do not have to pay the whole amount in one hit. Instead, the bank pays it as a progress payment claim, which means, the bank pays as you go. The construction of your home alone takes an average of 6 months.
10. The builder will keep you updated on the progress of construction
The builder will liaise with you throughout the construction process and keep you updated and meet you on site to view the progress of your new home.
11. You’re ready to move in!
Once you’re happy with the final product, it’s time to get the keys and move into your new home.
Redink Homes will help you every step of the way when building your new home and can help you choose a House and Land Package that’s right for you. Some packages include everything needed for a home, including blinds, paintwork, tiles and more. So if you prefer to do some of these things yourself or want the builder to take the hassle away and do it for you, Redink Homes have a package to suit you and your budget.
It may seem like a lot of information to take in at once, but you’re not doing it alone. Your Building Consultant will help you every step of the way and will make your building experience as easy as possible. To find out more about House and Land Packages, speak to Peter Bibsy from Redink Homes Midwest. Or if you need finance pre approval on a property, speak to Matt Gething from the Mortgage Gallery Geraldton.
Redink Homes are open Monday – Friday from 8:30am – 5:00pm
Phone (08) 9920 8999
They’re located at Suit 1, Champion House, 87 Marine Terrace, Geraldton
The Mortgage Gallery are open Monday – Friday from 8:30am – 5:30pm
Phone (08) 9964 4770
They’re located at 67B Forrest Street, Geraldton