What steps do you need to take to get a construction loan?

A construction loan involves a lot more careful planning than a standard home loan, which is why it’s a good idea to go through the process with a qualified mortgage broker. Generally, applying for a construction loan involves:

  • gaining pre-approval to buy land and begin construction;
  • buying the land and settling the contract with the lender;
  • selecting a licensed builder and finalising the contract with them;
  • undergoing construction of the home; and
  • completion of the build and move-in day!

Throughout the construction process, your lender can make payments to the builder at specific points. These will need to be outlined in the contract, and if you haven’t had experience building your own home before, you’ll need help to go through this paperwork.

Construction loans require more organisation than standard home loans, which is why you might need a mortgage broker to help you out!Construction loans require more organisation than standard home loans, which is why you might need a mortgage broker to help you out!

How do you find the best construction loan?

There are many loans out there designed to finance building and construction. The best way to find a suitable loan is to consult a mortgage broker, who will compare dozens of construction loans from different lenders to find one that matches your needs.

Please give me a call if you have any questions or are interested in finding out more!