Q & A: Construction Loans and Building Projects
Q: When do you apply for a Construction Loan if you have decided you are going to create your own building project? Does it depend on the size of the project? When is the right time to apply for your construction loan?
A: It’s never too early to apply for your Construction Loan. There are many things to consider and it takes time to pull all the details together.
Things to consider:
Type of property / project you are wanting to construct
How much is the land worth?
How much is the build worth?
How much will the finished product be worth?
How much will it sell for?
Will you make a profit?
Before applying, you should have considered these points and found documentation to support your figures. This can take time, and it is always better to be over prepared than to have to delay your application because you haven't considered all aspects.
We suggest speaking with your lender as soon as possible so you know how and what to prepare.