Helping finance your new home
ENTERING the real estate market is an understandably expensive journey.
Whether you are buying land to build on or buying new, there are going to be some major costs that a lot of people initially cannot afford.
Fortunately, with financing interest rates at an all-time low, it's also the perfect time for you to get started.
However, it's understandable to get confused when it comes to financing your home building or loan.
For those building on land, according to Real Estate View, you will often be able to apply for two loans from your lender.
This is so that you can buy the land with one standard mortgage loan, and then build your house with a construction loan.
The financing company will then be able to combine these loans together so that it's one large sum to pay off over time.
To be eligible to get any of these home loans, your current finances and credit scores will be assessed to determine any risks of repayment.
The land will also be assessed to see if the amount of the loan adds up to a reasonable amount.
You should also have a deposit amount prepared, which according to Suncorp, most banks will expect around 20 per cent of the loan or property's value.
Before your appointment with a financing company, you will need to gather a quote of the full amount or the actual building contract, a schedule from the builder, the builder's details and council approval documents.
If you're also looking to include more work done on the place, like landscaping or pool installation, it's important to also bring these quotes along with you.
Once your financing is completed and ready, you will then be able to go ahead and watch your dream house come to life.