Applying for a Construction Loan
January 20, 2010Applying for a loan is a lot of work and it does take a lot of time. If you are buying a home there are specific stepsthat you need to follow. If you are applying for a construction loan, there are a whole different set of questions that they ask and a different set of steps that you have to follow. Filling out a construction loans application and a regular home loan applicationare two completely different forms.
If you look online many siteshave these forms right on their site, so you can look at everything that you are going to need.All loan applications ask you some basic questions. They will ask your name, address, social security number and your email if you are filling it out online. With a construction loans application, they will also ask if you own land and they will probably want a detailed description of your construction loan project. This will give them an idea of the amount of the loan and where the money will go. Making sure that you know exactly the home that you are planning to build and the cost of the building process, will help eliminate a lot of steps later on.
If you do own land, a construction loans application will ask you all the details on that land. Where it is, when you bought it and how much you bought it for. Many of them will ask you if you have the plans for your new home. In some cases they may ask you if you have collateral. Like what type of assets you have and they will also want to know your credit score. All of these factors will determine if you are able to get a loan or not. No matter what type of loan you want, they always ask your income to debt ratio.Getting a construction loan is much more work then getting a regular home loan.
The construction loans application are much more in depth and require a lot more work on your part. It makes perfect sense that they want to know all the ins and outs of your planned project. If you know all of these things and you have everything you need, it will greatlyincrease your chances of getting the loan. If you haveall of your ducks in a rowahead of time, then they will see that you are serious and that you are ready to move forward on your project.
A construction loan has a whole different set of important questions.