Building a home is one of the great Australian dreams. Too often though buyers will sign contracts with land agents and builders to build their home only to have their dreams dashed when their home loan is declined. To avoid this, Building Loans Australia recommends that you first obtain a special Construction Pre-Approval.
What Is A Construction Home Loan Pre-approval?
Unlike a standard pre-approval, a construction home loan pre-approval is made subject ONLY to the valuation of the property you buy. A standard home loan pre-approval is made subject to a complete check of the mortgage application and valuation.
How Much Does It Cost?
Pre-approval is free and lasts for three to six months. If you come to the end of the pre-approval period and require an extension, you will need to confirm there are no changes to the application and submit updated confirmation of earnings (e.g. payslips).
What Can I Use The Pre-approval For?
A construction home loan pre-approval can be used for:
- House and land package
- Vacant land
- Building only (if you already own the land),
- Building two units on one title
What To Do Next?
Pre-approval is the best way to ensure that you will have access to the mortgage you require when it is needed. If you are considering building your own home, contact Building Loans Australia to arrange a free construction loan pre-approval. Our mortgage brokers are experts in construction loan policies and procedures, and will ensure pre-approval is made with the best deal for you.
