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.
Here is what our Finance Broker, Joseph from Calibre Lending has to say:
With years of experience I’ve helped many clients with their home loan needs. I understand the local property market and the needs of first home buyers, those who are looking to refinance their existing loan and property investors.
First home buyers
If you do not have the knowledge and understanding of the process of arranging your home loan, don’t be concerned. My job is to find the most cost-effective home loan option for you. I will review hundreds of loans from dozens of lenders and will work with you throughout the process from interview, to lodging the application. I’ll liaise with the lenders to keep you up to date with how the loan is progressing all the way through to settlement. You may be pleasantly surprised at the cost of buying your first home when compared to what you may be paying in rent.
Calculate your mortgage
Calculate an estimate on what your mortgage repayments could be and learn how to save money through making extra repayments.
Whether you need to move, are looking to reduce your repayments or fix your loan, or need to renovate your existing property, I would like to sit down with you to assess your home loan needs. Competition in the market is strong at the moment and with the recent reductions in interest I’d be surprised if I could not find you a better home loan deal.
The world post GFC has made investing in the share market volatile and unpredictable. The good news for investors is that the rental property market will remain tight for the foreseeable future. If you would like to find out how rising rental yields and the relative safety of investing in property could help you, feel free to contact me at any time.
We specialise in:
- Home Loans
- Investment Loans
- Commercial Loans
- Construction Loans
- 100% Home Loan
- Low Doc
- Car finance
- Equipment Finance
- Paid & Unpaid Defaults
To discuss your property finances, contact Calibre Lending today!
0405 536 596