It was about 2 years ago we looked at loan form bank to build, we had the land.
All cost related to clearing of land, preparation, council, cost of architect and any related specialist cost are to be paid by the borrower, they would then want to see the approved plans, QS report, quote from builder before they will give you formal approval.
each time a document is sent to the bank, it will then need another. cost at each drawdown as well.
So you will need a good 20% extra for just in case, any cost for overrun, most of the time they will not allow. there is a guildline on when is each progress payment is made.
The land itself, they might only lend 70% rather then the usual 80% as it is considered unimproved. Need to check make sure town water and electricty is in the area as from memory they actually asked that question.
But upon completeion, you can look for refinance (even with the same bank) have an updated valuation, provide the receipt and you can apply for a new loan that cover all cost if there is overrun.
in the mean time collect as many new Credit Card as you can and run only building related expense via the card as then just need to produce the statement to confimr where you have spent the money, just esaier doen the track. But must pay off in full each month so you are not payment a high interest. Also for Just incase the overrun as well.
