My house build journey : Stalled by Bank Bureaucracy

If you would like to get more context into this article, please feel free to read the previous articles

  1. My house build journey : Location
  2. My house build journey : Design
  3. My house build journey : Building permit
  4. My house build journey : Technical Consultation

I had 3 more steps to complete and I could get the (Start Message), but unfortunately it wasn’t just 3 more steps.

Having lived in Sweden for about 10 years, I completely forgot that things come to a stand still during July-August. But that was not the big problem. Responses were delayed but I still managed to get some offer quotes from different companies. Almost close to finalizing the foundation contract. The quote from the company who was offering to do most of the work turned out to be out of my budget. So, finalized the first CLT contractor whom I have been having a long email conversation for close to about a year now. He has been very patient in answering questions and also agreed to do the secondary (for insulation) framing part as well which will make it easy for the insulation company. I also had visited some of the constructions that they had done. I also managed to find a good offer for spraying (cellulose) insulation.

All that I needed was to get the bank to approve (building credit loan) but I was unpleasantly surprised. The bank that I had hoped for, took a U-turn and said that they don’t provide for (shared contract form). But when I had spoken to them many months ago, I had clearly explained it was and explained how the construction will be done. They were positive at that point and had given the (loan promise) then. The person who I spoke many months has moved to a different role now and I was directed to another colleague. They setup a meeting with the local office. The local office say that is higher risk than . This is understandable but debatable. They cite instances where one of the customers had gone along path and they had paid in advance and contractors didn’t coordinate and it ended up with more costs than expected. But based on this instance, it would be unfair to say that the only solution to that problem is for which they will offer .

They didn't even take time to look objectively into my (production calculation) or who the contractors are, or whether I will be having ( for CLT frame which is the major part of the house) and or that will be assembled in 5 days or that contractors will be paid in stages after certified inspection (from another company).

I started searching on social media if there were any other people in the same boat as me but to my surprise, there were similar boats, but their boats were sailing. The same banks which rejected for me have given loan to other people and guess what they also have the .

When I questioned about this, they came back saying that the information found on social media is not reliable and they cant comment about other customers. They also cited another reason as they had given to one person because he had a lot of experience in construction and building a house for himself. (I think I know whom they were referring to, because that was the person who suggested me to check with this particular bank).

So, something is not right and I don’t understand why :(

I have a few more banks to try then I will run out of banks. Then I will have to probably look for contract which could potentially mean

  1. Expensive, because they usually take about 10% of the production cost and probably use their contractors which could drastically increase the budget up by around 1 million SEK.
  2. No flexibility to influence the construction design and details, if at all it is allowed, it will be at a premium.
  3. More compromises like possibly no CLT.

I really don’t know, but let’s see what happens.

Status at the time this article was first published.

Days left for final inspection: 229 days

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