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How to Qualify for a Construction Loan

How to Qualify for a Construction Loan

construction loan

A construction loan provides the money needed to build your dream home.

Building a new home is an exciting event in your life. Once you’ve made the decision to build a house, you first have to qualify for a construction loan. Follow these suggestions to ensure you get the best construction loan possible.

• Know what’s available: There are several different loans available which range from 1 year to 30 years. One of the most popular loans available is the ‘construction to permanent’ loan. This loan has only one set of closing costs. Do your research about which loan is right for your situation.

• Research: Research online for the best mortgage lender and rates. The internet offers valuable information about lending institutes. Visit the sites of the lenders and research what they offer.

• Pre-qualify: Pre-qualify for the loan before you hire a building contractor so that you can find out exactly how much you will be able to qualify for and what your payments will be. This will help you set a budget for building your dream home.

• Check your credit: Make sure your credit report is in good shape. You should check your report 3-6 months before applying for a mortgage. If there are any errors, it will take time to have them removed.

To learn more about construction loans visit the lending professionals at Midland Mortgage Corporation today.

Posted Aug 23, 2012 by Midland Mortgage Corporation