Building a new home from scratch is not a cake walk. Construction loan is distinct from other loans available for purchasing existing properties where you receive the loan amount all at once, but since the construction loan are project based you will get the loan amount bit-by-bit as you move to the next level in the construction phase. During the construction period, you will be liable to pay interest only payments and at the final stage of construction your loan amount will change to variable rate loan that you mentioned in application.
When you apply for construction home loan there are few essential things that we scrutinize to streamline the application process for you. The checklist covers:
- Proof of ID- any one of the id proofs such as driving license, boat license, birth certificate, pension card, utilities bill or Medicare card.
- Expenses- a detailed expense statement must be to submit to lender such as school fees receipt to shopping bills, utilities etc.
- Income- Income proofs such as last two pay slips, Letter of Employment specifying the duration of working period, your gross and net income. In case you are self-employed, bank ask for recent two months income tax statement and tax assessment notice.
- Asset- last 3 months bank statement, details relating to shares or superannuation.
- Liabilities-if you have any loan repayments, you must provide latest 3 months of loan statement. An up-to-date statement must be submitted in case of car or personal loans, credit or store cards.