Your finances

Getting your finances in order in the early stages of building a new home is really important. Having worked with many different clients over the years, CSB Homes has collected resources and information to make this part of the process as seamless as possible.

How to get a construction loan

Getting approval for a construction loan is a different process to applying for a standard home loan on an existing home.

The first thing you will need to do to ensure a smooth application process is to present the lender with professional plans for your property. A property appraiser will then go over these plans to determine the expected value of the property when completed.

This is because when you apply for a construction loan, the lender considers the expected value of the property upon completion of construction as well as the total amount required to borrow in order to pay the builder.

Once this has been done, the lender will then ask you to approve a loan offer for the property.

You will then have to make a deposit, as you would with most other types of home loans. This acts as a security at this stage of construction, and a larger deposit will represent your commitment to your lender.

For each stage of the construction process listed earlier, you’ll have to confirm that the work has been done, is complete and sign a drawdown request form and send it to the construction department of your lender.