Understanding Refinancing with Bad Credit – A 10-Minute Guide
Understanding Refinancing with Bad Credit: A 10-Minute Guide Table of Contents Refinancing your home loan can be a powerful financial tool. It allows you to
If you’re looking for a construction loan, you might be wondering if you need a contractor in order to be approved. In most cases, you will probably need to employ a builder or contractor to help you gain approval from your lender. You will need to submit specific documents that need your contractor or builder’s details, and they may need to assist you with the building plans that your lender will need to see.
Read on below to find out more construction loans and contractors.
A construction loan is a type of home loan that are designed to help people who are beginning or in the process of building a home, as opposed to purchasing an already built property. A construction loan is typically set up as a progressive drawdown loan.
That means that instead of receiving one lump sum in the beginning, you will receive funds for each stage of the build as they happen. Generally, you only have to pay interest on the amount that is withdrawn, rather than the whole loan amount.
Generally, most lenders will want you to have a contractor or a builder by your side when you’re applying. As they will need to see building plans and cost estimations, having a contractor could make the application process easier and more straightforward. Some lenders may lend to you with an owner builder loan, which is when you take on the role of the builder yourself. However, you generally need to be a licenced builder to be approved for this type of loan, and the qualification criteria can be quite strict.
You may find that the easiest way to get approved for a construction loan is to have a contractor ready to assist you with your build, as many of the application steps require your builders and contractors to supply your lender with specific documents.
Unlike the payment structure of a standard home loan, construction loans are progressively drawn-down. This means that you withdraw from the loan as needed to pay for the construction as it progresses.
In order to release the first lot of funds to your builder, you’ll need to provide documents of proof to the bank. These could include:
Once you have given these documents to your lender, they should be able to release the first stage of funds. Each lender is different though and may have a different set of documentation that they need in order to approve you. It’s best to speak with your lender to find out exactly what they will need to see, and when they will need to see it.
To us, you are more than your credit rating. We have helped countless Australians with both good and bad credit ratings to be funded for their dream build. We understand that lending criteria from other lenders are too strict, and can stop you from achieving your goals. That is wrong, and it should not hold you back.
With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.
Our finance specialists can help you find the right construction loan for your project. Construction finance is a complicated topic, but we will find a loan that makes your dream project that much easier.
If you are one of the many Australians finding getting a construction loan difficult, Tiger Finance can make the process simple and pain-free. Call us today for your free initial consultation with one of our loan specialists.
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Our vision is to make it simple and easy for every Australian to get the funding they need to achieve their big life goals.
National Home Loans Group Pty Ltd trading as Tiger Finance | ABN 57 168 971 346
Tiger Finance Credit Representative: Kiara Patricia Halley | Credit Licence: 468465
*Interest Rates: Conditions, fees and charges apply. Interest rates are subject to change and will vary. We cannot guarantee that the interest rate advertised on our website will be the one offered to you. Interest rates offered will be dependant on your situation.
*Consolidating high-interest personal loans and credit cards into a lower-interest home loan may result in significant savings on interest for some consumers. However, this solution may not be suitable or accessible to everyone.
*The approval timeframe is varied. Approval time is subject to change depending on your circumstances or loan type. Processing times may be subject to your lender.