Is loan approval needed for new builds?

ButtermilkJa

Registered User
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660
Quick question... is it possible to place a deposit on, and then sign contracts on, a new build
without having approached a lender for loan approval?
 
It is possible if you have enough money to cover the 10% deposit but it's not advisable. If you can't raise the funds by the time closing comes around you'll lose your 10%.

Can put a booking deposit down (same is refundable) and try sort out finance prior to signing contracts. Better option altogether.
 
Thanks for that. I know what you mean but I already own an apartment and was going to put a deposit on another one (off plans) that wont be ready for 2 years. By that time I will be able to sell my own and have enough saved to see the whole thing through. I reckon I will have enough to put the 10% down initially without loans as well.

I just didn't want to go through the whole mortgage application process right now if I could avoid it. I just didn't know if it was a legality that you had to have mortgage approval or they wouldn't sign the contracts.
 
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