Time for applying for home loan to moving in

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Forums › Finance and wealth management › Time for applying for home loan to moving in

LostBoyNZ

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#239622 26-Jul-2018 18:52

We're still a few months off applying for a home loan for our first house, but just wondering how long it often takes from applying to moving in, considering a new land and new build, around Christchurch. We'll just imagine we already have land available in mind.

I'm sure it will vary absolutely wildly, but at the moment we don't know if it's usually a few moths, a year, or such.

Thanks!

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Linux

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#2063135 26-Jul-2018 18:59

How long is a bit of string? Your question is sooooo open

John

scuwp

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#2063144 26-Jul-2018 19:04

12 - 18 months starting from scratch, but sooooo many variables. Things always take longer and cost more than you think. Typical build for a family home based on my experience 14 - 18 weeks once you break ground. Smaller simpler house less, larger more complicated home more. Depends on trade availability as well.

Lazy is such an ugly word, I prefer to call it selective participation

Dial111

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#2063154 26-Jul-2018 19:18

We are probably 3/4 of the way through from applying for a construction loan, purchasing land, to now having our house 2 months out from completion. From memory we started the whole application process mid Feb but we had all our ducks lined up from deposit to having land (titled) and house design all ready to go so it was mostly all contracts and lawyers up to the point the slab was poured.

We are building in the Christchurch region too, are you looking at house and land package or design and build? a few things can throw it out a bit longer like applying for a title and council permits.

The general consensus I got from most builders was a build time of 5-9 months weather permitting, currently our build is shaping up to come in just under or on 5 months with only one setback due to weather.

LostBoyNZ

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#2063198 26-Jul-2018 21:59

Thanks very much for the replies :) Completely understand it being a how long is a piece of string question. There's an infinite number of different scenarios. But it does tell us it's not just a 3 month type of thing (which we didn't think it was, but wanted to check).

It'd be great if we could get all our ducks lined up late this year. I'm a student at the moment, ending this November, so I'm sure that will delay things if it takes a bit of time to get a job. I'm self employed in the meantime too though, although I bet that complicates things in terms of getting a loan approved too.

We're probably looking for a design and build, but it's one of those things we'll have to research a lot into. It might end up that all we can afford is a house and land package choosing one of their pre-made plans. That's good to know too though, that it will take a bit longer to get the title and permits.

Just under 5 months sounds like you did really well though yeah!

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Batman

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#2063199 26-Jul-2018 22:07

Buy land, Design & build in 3-5 months???

I was thinking more like minimum 12 months.

mattwnz

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#2063221 27-Jul-2018 00:55

Best person to ask is the developer or whoever you are buying it from, as I am guessing it is a customised 'off the plan house', rather than architect designed for you. If it is an off the plan house, then the council consent process etc, should be faster, as they will likely be following plans that have been used before.

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LostBoyNZ

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#2063317 27-Jul-2018 09:07

More like minimum 12 months? It's looking like that yes. That's what I was hoping to get an idea on with the thread.

I'm absolutely certain we'll get a customised off the plan house rather than a architect, so that's good to know it won't delay things quite as much as it could otherwise.

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alasta

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#2063568 27-Jul-2018 12:37

Cookie cutter 'off the plans' purchases should be easy because you would typically pay an upfront deposit of only around 10% and then the balance on completion.

A project that you are managing yourself is more complicated because you are likely to need to draw down the mortgage to make progress payments to the builder.

Batman

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#2063610 27-Jul-2018 12:51

alasta:

Cookie cutter 'off the plans' purchases should be easy because you would typically pay an upfront deposit of only around 10% and then the balance on completion.

A project that you are managing yourself is more complicated because you are likely to need to draw down the mortgage to make progress payments to the builder.

Yes but you might not the on the top of their hitlist. Imagine 100 people wanting to build ... all want a house by Christmas. Then you need good weather, tradies, plumber to do their bit before electrician, council to sign off before the the gib can go on before the painter can before the ...

minumum 12 months.

Inphinity

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#2063620 27-Jul-2018 13:03

As others have said, tons of factors. We took 10 months from picking a location to moving in - so that was finance, picking & buying a lot, plans & consents, build, move-in. But it was a pretty ready-to-go site - so not a lot of earthworks, and a single-story building, both of which helped with timeframes.

jamesrt

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#2063629 27-Jul-2018 13:31

Here are the timelines for our land purchase/new house build:

1. Start: Jan 2012 "Window Shopping"

2. Land Purchase: Nov 2012 - existing section, title available immediately, but we deferred

3. Builder selection starts: Nov 2012

4. Builder/Designer chosen: Feb 2013

5. Plans agreed/costed: June 2013

6. Bank Finance arrangement: June 2013

7. Settlement on Land (i.e. Loan drawn initially): Sept 2013

8. Construction begins: end Sept/Early Oct 2013

9. Moving into completed house: April 2014.

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pctek

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#2063930 28-Jul-2018 09:58

However long it should take, say 1 year, double it.

There will be delays, problems, stuffups and so on.

better to just buy a house.

LostBoyNZ

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#2063932 28-Jul-2018 10:05

Paying just 10% at the beginning and the balance later certainly has its advantages yes.

Thanks everyone, this gives us a much more realistic idea of what to expect. Ideally we'll have time to get started before I finish studying :)

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MikeAqua

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#2064871 30-Jul-2018 11:13

Home loan these days is usually the fastest part of buying a house.

Mike