If you have finally decided to escape the rent trap by getting a home construction loan to build your very own home, you are already on the right track. Building a home offers many benefits to the homeowners, including government grants that can help you kick-start the construction process.
At Stop Renting Albany, we are on a mission to help people get out of the rent trap and we have already helped many people get a home construction loan to build their own homes. However, many people looking to get a home construction loan aren’t sure what documents they need to get this loan. This reason is why we have put together this article to let you know what documents you need to get a home construction loan, so read on.
Documents you need to get a home construction loan so you can stop renting and start owning
To get approved for a home construction loan so you can stop renting and start owning your newly built home, you have to submit some documents. Apart from the obvious financial information such as your current financial state, your tax returns, and other related information, you will also need to provide additional information in the form of documentation. These documents are as follows:
Homebuilding contract: A building contract, as the name suggests, is a contract between you as a client and the builder. This contract exists to protect the rights and responsibilities of both the client and the builder.
This contract contains things such as how long the construction process might take and the total cost for the build, and other details such as the construction process stages. This contract has to be submitted when applying for the home construction loan to get your loan approved.
Building plan: Building plans are the very core drawing of your home, also called blueprints, that the builders and contractors use as a reference when constructing your home. Another use of the building plans is the calculation of the estimated cost needed to build the house.
That is why you have to provide the building plan when applying for the home construction loan so the lender can understand the nature of the home you want to build and the estimated amount of money needed to construct the said home. So if you are wondering how to get out of the rent trap and already have many lands, getting building plans made brings you one step closer to getting approved for a home construction loan.
Specifications of the home: This document gives your lender an idea about what materials, appliances, and labor are needed to complete the home. The home specifications also help the lender estimate the house’s cost and the amount of loan needed to finish its construction.
If you are one of those people who say I hate renting every time they have to pay dead money as rent, then you should get in touch with us to start your journey to become a homeowner.