construction loans for in process builds

As you might have guessed from the name, it involves putting up the external walls, doors, roofing, windows and other components that will allow you to ‘lock up’ your property.įunds required: Approximately 20% 4. The lock-up stage is when the exterior of your home begins to take shape. This will take approximately one day for an average, single storey property and between two to five days for a two storey property.įunds required: Approximately 20% 3.

With the slab laid, the builder will now focus on erecting the skeleton of your home. Once the slab has had time to cure, builders will also connect the plumbing and drains.įunds required: Approximately 15-20% 2. Here, the concrete slab which will make up the foundation of your home is measured and poured. Slab: This is the first stage of the construction process. Upon completion of each, you’ll have to submit all the relevant claims, invoices and receipts to your lender. The construction process is typically divided into five stages. If your application is successful, your bank will then give you a loan offer and hand over any other documents that might be required as part of your loan agreement. Further valuations will likely take place as your home is being built.ĭon’t forget to include any quotes for any out of contract items you plan to purchase, such as fencing, bathroom tiles and landscaping, otherwise the appraiser will not include them in the valuation. This will help your bank determine how much to lend you.

That means your credit score, income, expenses and any other debts you might have will all come under scrutiny.Ī property appraiser will then estimate the value of the property - including land - as if the build was complete. Just as with a traditional mortgage, your bank will comb through your finances to make sure you can comfortably service a loan. These include the builder’s contract, building plans, the schedule of finishes and specifications, and all relevant insurance policies. The council permit must then be submitted to your bank, along with a few other documents (detailed below). This is usually handled by your builder or architect. Before you can apply for a construction loan, the plans for your new property will need to be approved by your local council (or an authorised agent acting on your council’s behalf).

Construction loans for in process builds