What Is the Construction Loan Process?
Any financial process is likely to have complicated elements to it, as well as small print worth reading. The construction loan process is no different, however its reputation for approval is far better than other types of loans, which should be an encouraging fact for home-buyers to feel reassured by.
The process itself can be summed up in 10 easy steps. A basic outline of these steps will be reviewed below, though do consult our home page for more information on each.
Preferably with the help of a financial expert. See our contact form for details on how to contact one of our expert advisers who will ensure you are directed towards the perfect package.
When using our services, this is something we’ll do for you as part of our commitment to responsible financial management. If doing this alone, be sure to have relevant financial documentation on hand, and complete the application to the best of your knowledge.
Your lender will then assess your application, and make a decision based on the strength of it. Your credit score, current debt amount and the viability of your project will all be used to determine whether or not you’ll be a safe bet.
If using our service, your mortgage broker will notify you of your approval, and help you understand what needs to be done to transform it into an unconditional offer.
When land contract, plans and build contract have been seen and deemed sufficient, you’ll be able to move onto the next stage of the construction loan application process.
The Construction Loan Process (Part 2)
Mortgage Insurace may be required if you are borrowing a large proportion of the property value. Once the mortgage insurance is approved, you’ll move on to the next step.
Here, you’ll receive a formal offer from your lender, offering you the sum of money agreed upon during the application process.
After unconditional approval, your lender will prepare the documentation needed before finances can be released. This includes your letter of acceptance, and any terms and conditions your loan may have upon it.
Every project needs the correct insurance applied to it, just in case the unpredictable that nobody expects to happen, happens. To find out the best type of insurance, contact mortgage broker cash.
After the above steps have been completed, there’s nothing left to do other than get started on making your dream a reality. Your loan is now approved, and hopefully protected, meaning you can get to work on what’s important: building your future.
Is a Construction Loan Right for Me?
Only you can know whether or not any type of financing is right for you, but hopefully, taking into account the above information and the rest of the information on our web page, you now have a better idea of how to proceed with your plans.
If you have decided to go ahead with your building plans, a construction loan will likely be ideal for your needs.
How Can I Proceed With Getting My Construction Loan?
Contacting Mortgage Broker Cash to discuss your plans is your best course of action once you’ve decided you’re serious about building your dream home. He or she will be able to help you decide whether a construction loan is the best type of funding means for you, and help you with your application. This will ensure a greater chance of approval for you.
With years in the business, we’ve helped many people like yourself turn their ideas into a reality, and are on hand ready to assist you day or night.