How to apply for a construction loan?

When you apply for a construction loan, you get the money on the proposed finished value of a property, the construction of which has not yet begun. You need to make any lender acquainted and convinced of the entire picture to start the loan approval process. You would also need some standard credit documentation.

We help you get the best construction loan quickly.

• The full application package
• Final plans and specifications for the home-To obtain an appraisal that will reflect an estimate of the value of the property at the time when construction is completed.
• Purchase contract for the lot - For settlement statement from the title company. this is needed if you have already purchased it
• Property profile - a description of materials to be used
• Line Item Cost Breakdown from the builder - we supply the forms
• Builder's construction contract – the builder/contractor will supply it you
• Copy of the Builder's/Contractor’s license
• Builder's statement and/or signed authorization for credit rating

Additional costs
Other costs involved besides construction loan usually vary. These typically include closing costs, fees and special insurance requirements. Note that Construction-to-Permanent Loan usually include on-site costs, off-site costs, closing costs, interest reserve, contingency reserve and lot purchase or value.

When should you pay for a construction loan?
We do have collaboration with various lenders offering an interest reserve on construction loans. Through this, we ensure that our clients do not have to pay from their pocket until the loan is approved. Once the loan is approved, our lenders integrate an interest reserve account within the loan amount. We ensure that there are sufficient funds which can carry you through the construction period.

Does your payment cover principal and rate of interest?
This typically depends on the type commercial loan you apply. You may have interest only payments on incremental funds drawn out before the completion of the project, and in that case interest would be charged only on the amount of funds used at any given point and time.