The Gruen Eco Design blog about how to convert your dream from an energy efficient home into a reality.
The 20/20 House Part 30
Contract Is Signed & More Delays – The Joys When Financing A Home
Our journey to our dream home sometimes feels like it is never-ending. Just when we had everything sorted with the builder (Contract signed, Start date sorted and to be the 10th of May) we have been thrown another curve ball.
The learning out of this: stay in close contact with your mortgage broker and never assume anything…
As some of you might know, the construction of our passive house has been a long time in the making. And we had so many discussions with our mortgage broker that I cannot even remember them all. We knew we were good to go, everything was pre-approved. Or so we thought…
But, when I called the mortgage broker last week to tell him excitedly that we had finally signed the contract. He said:
“Sorry, but you are too late.”
I almost fell off my chair when he explained why.
If we had signed the contracts at the end of March, all would have been fine. But now, since we are in April / May, the bank requires the tax return from 2020. And surprise-surprise, we hadn’t even started on the tax return yet. Since our new home and getting everything finished for the building permit was our main priority.
The builder’s contract and his warranty insurance were the last thing missing. Wrong!
The last stumbling block is now our finance.
And, thanks to covid and everything that went on last year the banks are being extra careful and are requesting more information than ever. Especially when you are self-employed. Which means, once we have received the tax return it can take 20 – 25 business days for finance to come through.
As you can imagine, there was a bit of chocolate involved on that day to help me recover from that news…
We spent the following days, or rather nights, after the kids were in bed, putting together all the things for the tax returns. Yes, plural. Our 2 private returns as well as business tax return.
But, given the complexity of it all it could take 2-3 weeks for our tax agent to complete.
Oh dear. I just don’t want to deal with more delays. But it is what it is.
Meaning we now have to start paying with our money, to keep things moving. And then get the money back from the bank later.
Little side note:
Not sure if you were aware. But there is a real shortage in construction materials. Especially structural timber. So if we don’t order and pay for certain materials now, they will not be here and available when we need them.
As it now stands, the Sips panels might arrive even before our finance is approved….
It never gets boring.
Stay tuned and wish us luck!