Financial Review Today

We,
Are going to see
The Finance man
Today

Choose
The don'ts and do's
Of our search for a home
To stay

Yes, that's right. Well actually, we just went to see our finance man, Mr. Dickerson from Direct Mortgage Concepts to try and finalise what kind of loan and how much we can also borrow to get our building dreams done. 


Current Situation 

In terms of loan amounts on paper, it will appear that we will get a big chunk of red if we do go out and ask a bank for a loan in our current financial standing. Although we have paid off most of the loan on our current dwelling, we still have a substantial amount owing on an investment property. 

In fact, we can probably just pay off the loan on our current dwelling. However, having cash ready to go is more flexible depending on your situation. In our case, we prefer to keep the cash in hand for now. 

With these in view, on paper, there will be less risk if we sell our current dwelling to release funds into our account, rent somewhere (or stay with in-laws) until the new place is built, then move to the new place. In this way, our "red" financial debt will have a better chance of not climbing to the $1M mark during the transaction. 

This is quite inconvenient as the double move will in itself incur costs as well the rental payments (or contributions to the in-laws inconveniences). So we are trying to do a single move option. 


Possible Options 

Initially, we were looking into a relocation loan. This will be what I described in the previous section. It will involve re-financing all of our loans and possibly a transfer to another bank. Again, a small inconvenience with changing of cards, account management and also automatic payments need to point to the new account(s). 

The second option, which we are leaning towards, is to stay with our current lender. DMC will be helping us to defend our position with the bank and try to get pre-approval for the amount that we are hoping for. It is a bit more than what we expected and thanks to them, we have a preferred option. This will be more convenient, much smoother and obviously has view of loyalty with the bank. 


Here is to hoping that we will get the second option. It is difficult to speak to builders and land releasers regarding what you want when you do not have a solid pre-approval to lean on. I guess it is difficult to commit from both sides in this situation.