Get the free Construction Loan Checklist

A checklist of necessary documents and information required for applying for a construction loan, including various personal, financial, and property-related documentation.

How to fill out construction loan checklist

How to fill out Construction Loan Checklist

1. Gather all necessary documents including income proof, bank statements, and credit reports.
2. Research and understand the terms of the construction loan.
3. List down the details of the construction project, including the estimated budget and timeline.
4. Contact your lender and request a Construction Loan Checklist.
5. Follow the checklist line by line, including details such as contractor information and project plans.
6. Attach any required documentation as specified in the checklist.
7. Review the completed checklist for any missing information or errors.
8. Submit the checklist and documents to your lender for review.

Who needs Construction Loan Checklist?

1. Homebuyers looking to finance the construction of a new home.
2. Real estate investors planning to build or renovate properties.
3. Contractors managing construction projects that require financing.
4. Lenders assessing loan applications for construction projects.

People Also Ask about

What is the typical term for a construction loan?

Construction loans are short-term loans with a fixed term, often around one year, aimed at covering the period of construction. Repayment process: Soon after receiving their mortgage funds, traditional mortgage borrowers begin making regular monthly loan payments that include both principal and interest.

What are the steps for a construction loan?

Step By Step Guide for Construction to Permanent Financing Step 1 - Initial Discussion. Step 2 - Apply for Financing. Step 3 - Submit your Contract. Step 4 - Loan Underwriting. Step 5 - Appraisal. Step 6 - Loan Closing. Step 7 - Construction Phase. Step 8 - Permanent Financing.

What is not covered in a construction loan?

For example, a construction loan doesn't usually cover the home furnishing aspect of a home, although it may cover things like permanent fixtures throughout the walls of the interior and necessary appliances, such as fridges and washing machines.

What are typical construction loan terms?

Construction loan terms typically last from 12 to 18 months, but they can vary based on the lender and project. During this time, you'll only pay interest, not the amount you borrowed. It's important to work closely with your lender during construction to stay on track with your timeline and budget.

What are the repayment terms for construction loans?

Most local lenders require a 20% to 25% down payment for a construction loan, however, Premier Bank only requires 10% down payment for a construction to permanent loan. Some people also may want to use their land as a down payment, which can be done, depending on the equity and value of the land.

How long are most construction loans?

However, borrowers do not have to pay the construction loan off at the end of 18 months. Instead, the construction loan becomes a traditional mortgage, giving borrowers 10-30 years to pay off the debt.

Do you need 20% down for a construction loan?

Most local lenders require a 20% to 25% down payment for a construction loan, however, Premier Bank only requires 10% down payment for a construction to permanent loan. Some people also may want to use their land as a down payment, which can be done, depending on the equity and value of the land.

For pdfFiller’s FAQs

What is Construction Loan Checklist?

A Construction Loan Checklist is a document outlining the necessary steps and requirements for securing a construction loan, aiming to streamline the application process.

Who is required to file Construction Loan Checklist?

Typically, borrowers seeking a construction loan are required to file the Construction Loan Checklist to ensure that all necessary documents and information are provided.

How to fill out Construction Loan Checklist?

To fill out a Construction Loan Checklist, borrowers should gather all required documents, complete the checklist by providing detailed information, and ensure accuracy before submission.

What is the purpose of Construction Loan Checklist?

The purpose of the Construction Loan Checklist is to guide borrowers through the loan application process, ensuring compliance with lender requirements and increasing the likelihood of loan approval.

What information must be reported on Construction Loan Checklist?

Information that must be reported on a Construction Loan Checklist may include personal financial information, project plans, budgets, timelines, contractor details, and any relevant permits.