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Loan offer received, can the builder start?

  • 09-08-2021 4:32pm
    #1
    adocholiday
    Registered Users Posts: 1,916 ✭✭✭


    Hi all,

    I've just received a loan offer for a mortgage topup for a home extension/refurb. We're moving lender as part of this if it matters. At this point is it ok to give the builder the go-ahead to start? We have the funds for the first phase so we don't need to wait for drawdown for that, but is it still too soon in the process to start or do we need to wait until the money has been formally released regardless?



Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,363 Mod ✭✭✭✭Jim2007


    An offer just that, neither side is under contract obligations and offers can be withdrawn, although it is not normal.

    None of us have a crystal ball, so we can’t say for certain what you should do. The worst outcome would that the offer would be withdrawn, you were unable to get another offer in time for the second phase and had to press the pause button. How would you feel about that, what would the reaction of your builder be?

    if it were me, I’d wait until I had the signed contract from the bank.



  • #3
    adocholiday
    Registered Users Posts: 1,916 ✭✭✭adocholiday


    https://www.boards.ie/discussion/comment/117731763#Comment_117731763

    Thanks Jim, that was our thoughts too, that we're still a bit away from being 100% ready to kick off. The issue is that the builder needs to start soon or he'll have to drop the project, he has other projects lined up so he can't let the timeline slip beyond a week or 2 especially coming into the winter. Between a rock and a hard place it would seem, we either postpone the project for who knows how long or push ahead knowing the risk and hope that there are no issues with the bank.



  • #4
    El Gato De Negocios
    Registered Users, Registered Users 2 Posts: 7,072 ✭✭✭El Gato De Negocios


    https://www.boards.ie/discussion/comment/117734664#Comment_117734664

    We commenced a new build yesterday and like you, are at loan offer stage. We cannot get first drawdown until the first build stage is complete and we are funding that. I have spoken to the bank and they advised that once we have the final few bits needed such as mortgage protection cover, there will be no issue with getting the drawdown.



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