Making the decision to build or renovate your own home can be a very exciting time.
When you are constructing a home, you don’t require the entire loan all at once – you will most likely need to pay in stages. This is great, because it means that you will only be paying interest on the money that has been drawn down.
The bank usually arranges an inspection at each of the construction stages where payment is required, meaning that you won’t pay for work that hasn’t been completed.
In order to qualify for a construction loan, there are several requirements that must be met, including:
– The signed building contract with a licensed builder must be for a fixed-price
– Copy of builder’s Insurance Policy
– The building plans must be stamped and approved by the appropriate council