It is never too early to apply for a construction loan. There are many elements that are involved in the construction process that relate to the loan process. Here are some reasons to begin the process of applying for a loan early:
- It takes some time to get together cost figures. The lender for your construction loan will need a definite construction cost before they can even submit your loan. Any contractors and subcontractors you are working with will need to supply your figures for the project. This can take some time and delay your efforts.
- The loan process itself will take time. The application process will normally take four to eight weeks. This includes collecting documentation for income and assets, processing the loan, submitting the loan for underwriting, gathering information on prior conditions, obtaining the appraisal, acquiring the permit approval, and lastly funding the loan. This process can involve anywhere from twelve to fifteen people. Coordinating each step with this many people involves can take some time.
- Along the way, credit issues may arise. It is a good idea to address these ahead of time, so if you haven’t had your credit run recently, it is a good idea to do this for you and the co-borrower. This way you avoid surprises while you’re in the middle of your project. Running your credit early may help to fix any discrepancies or errors.
Contacting ConstructionLoans.com early on in your construction project will supply you the opportunity to see what programs are available to you and how you may qualify. The experience we offer can help to address your issues before major problems arise. We can assess your building’s needs and loan qualifications to save you money and time. It is never too early to begin this process.
If you have any other questions on applying for construction loans please feel free to contact us at 1-800-688-2494.