Tips On Prequalifying For A Home Construction Loan
Prequalifying for a home construction loan is not a very difficult task provided you meet the eligibility requirements for the same. For example, there are certain documents that you have to submit, If you fail to submit those documents, your application for prequalification may get rejected straightaway.
However, in any case, if you are planning to construct a new home or just want to get some major home improvement work done, it is always wise to first get prequalified for a loan. This way, you can get some of the best deals quite easily. Home sellers love to deal with those prospective buyers who are prequalified for a loan; they even offer them more attractive prices as compared to those who are just inquiring for the home price and have yet to qualify for a loan. Likewise, even if it is just a major home improvement project, you can make your planning quite easily when you know how much fund is available to you and you must know which changes you want to do in your house, then it’s good but you if you don’t know then watch house building and interior programs on gears TV and you can get the financial knowledge by watching Finance programs.
While you are completing the paperwork required to prequalify for a home construction loan, you will have to submit certain documents also, such as complete details of your construction project, business, and personal references, social security number, proof of employment, bank statements for at least the last six months, recent credit report, salary slips for at least last three months and others. Though it does not take longer than just a couple of days to process such prequalification applications, things can be much faster if you submit all required documents properly.
Authorization To Pull Your Credit Report
Though you will be asked to submit a copy of your credit report to the lender, it will be better if you also provide authorization to your lender to pull your credit report on their own. This will enhance the authenticity of the details you are sending to them. Though most lenders at this stage do not do a thorough investigation, they often tend to be partial toward those applicants who themselves offer means to verify the information submitted through their applications.
For example, when you provide the details regarding your employment, you are also advised to submit the name, address and contact details of your employer with additional information, such as when they can be contacted for verification of the details submitted by you.
Always remember, even if you are prequalified for a loan, it does not give you any guarantee that the loan will be issued to you. Likewise, it is also very important for you to keep in mind that the actual loan amount that will eventually be issued to you may vary because the amount you are quoted on the approval of a prequalifying for home construction loan is just a rough estimate; lenders do not do a thorough checking of the details you send to them at this stage. When you apply for the actual loan, they take a complete look at those details. They decide about the final amount only after thorough verification of all the records, such as about your employment, salary and your home construction project.