Landmark Homes Builder

lazymonkeygod · 17-07-2012, 03:53 PM

Is it true that Landmark requires you to have a preapproval from the bank before they can build for you and that the preapproval cannot be based on the condition that you are going to sell your current home? If that's the case, then what if by the time you sell your home they no longer have the lot that you had your eyes on? Where do they expect you to stay if it takes them 6 months to build your new home? Can this be their actual policy?

Alex.L · 17-07-2012, 03:59 PM

Think of it this way, if your place doesn't sell and you can't actually handle both mortgages, they now have to sell a house built to your specifications. It just makes sense for them to require an approval.

lazymonkeygod · 17-07-2012, 04:13 PM

But that's why the builder has a non refundable downpayment of 20% before they start building...if in the end the buyer can't get the loan then they lose out the 20%.

Alex.L · 17-07-2012, 04:18 PM

Right, but the builder isn't going to only build 20% of a house.

They need to be assured that you will be able to close and take possession when it's ready.

kcantor · 17-07-2012, 05:06 PM

^
^^
landmark's construction lender probably also requires the purchaser's unconditional preapproval in order to finance the construction of the home so landmark is probably only "passing on" that requirement to the purchaser...

17-07-2012, 03:53 PM	#1
lazymonkeygod First One is Always Free Join Date: Jan 2008 Location: Edmonton	Landmark Homes Builder Is it true that Landmark requires you to have a preapproval from the bank before they can build for you and that the preapproval cannot be based on the condition that you are going to sell your current home? If that's the case, then what if by the time you sell your home they no longer have the lot that you had your eyes on? Where do they expect you to stay if it takes them 6 months to build your new home? Can this be their actual policy?

17-07-2012, 03:59 PM	#2
Alex.L Addicted to C2E Join Date: Oct 2007 Location: Edmonton	Think of it this way, if your place doesn't sell and you can't actually handle both mortgages, they now have to sell a house built to your specifications. It just makes sense for them to require an approval. __________________ Y.E.S.S. Fundraiser - http://tinyurl.com/yessdonate Maker of Something Edmonton - http://tinyurl.com/YEGFRAME

17-07-2012, 04:18 PM	#4
Alex.L Addicted to C2E Join Date: Oct 2007 Location: Edmonton	Right, but the builder isn't going to only build 20% of a house. They need to be assured that you will be able to close and take possession when it's ready. __________________ Y.E.S.S. Fundraiser - http://tinyurl.com/yessdonate Maker of Something Edmonton - http://tinyurl.com/YEGFRAME

17-07-2012, 05:06 PM	#5
kcantor Addicted to C2E Mr. Reality Check Join Date: Mar 2006 Location: Edmonton, Alberta	^ ^^ landmark's construction lender probably also requires the purchaser's unconditional preapproval in order to finance the construction of the home so landmark is probably only "passing on" that requirement to the purchaser... __________________ really just cranky, miserable and disagreeable on principle but happy to have earned the title anyway; downtown arena fan; edmonton 2017 world's fair and edmonton indy supporter; proponent of "*edmonton works*"

17-07-2012, 04:13 PM	#3
lazymonkeygod First One is Always Free Join Date: Jan 2008 Location: Edmonton	But that's why the builder has a non refundable downpayment of 20% before they start building...if in the end the buyer can't get the loan then they lose out the 20%.