Construction Loan Applications: What Do Lenders Look for?

Getting a construction loan is going to be different than trying to acquire a traditional mortgage loan. Here are some of the things that a lender is going to look for when approving someone for a construction loan.

Land Ownership

When you are trying to get a construction loan, you are going to need to own some land in most cases. The lender likes to see that you are the owner of the land that you plan on building on. It will be very difficult for you to get financing to pay for the land and the construction of the property in one loan.

Blueprints

When you try to get a construction loan, the lender is also going to want to see some construction plans. The lender wants to see that you have chosen the design of your house and that you know approximately how much it is going to cost. The more detailed that you have in these plans, the better chance you have of getting approved.

Contractor Information

The lender is also going to want to know details about the contractor that you are planning on working with. They are going to want to make sure that the contractor is reliable and that their estimates can be trusted.

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