residential construction loans

with the construction loan, you can raise capital for the purchase of building land as well as for new builds and renovations or for renovating residential or commercial property

Residential construction loans basics

Building a new home for the first time can be confusing and frustrating. firstly, it is important to find or purchase land to build your new home on

You need to get pre-approval from your lending facility. After the pre-approval process you will know the total amount you can afford on the whole project including land, building and landscaping. Remember to allow extra funds for non-budgeted expenses such as overruns, missed deadlines, and construction upgrades.

Apply for Residential Construction loans Tips

Arrange financing on construction process. Once you have an acceptable bid from your builder, bring your bid and plans to your lender to complete the construction financing phase. At this point, discuss the mortgage phase and how the mortgage will affect your future payments and for how long.

Work with a lender that you are comfortable with and keeps the loan in-house. This allows you to contact the same lender for future questions.

Make sure the construction loan allows at least 4-6 draws during the building process and ensure the construction loan charges interest only on the disbursements.