By Mark J. Donovan
To obtain a home construction loan you will need to provide a complete construction package to the lending institution. The complete construction package consists of detailed engineering drawings, a build schedule, a material list, material and labor costs, contractor names, and an expected schedule of payments.
Usually you need to own the building lot outright in order to obtain a home construction loan. Also, often banks hesitate in providing construction loans to homeowners, without the involvement of a licensed general contractor.
A home construction loan can frequently be converted into conventional mortgage loan after the home has completed construction. Make sure you check with the lending institution on this option before deciding upon them. You could save yourself thousands of dollars in closing costs and interest rate payments.
To learn more about home Construction loans and how they work see: New Home Construction Loans.
For more help on building a new custom home, see HomeAdditionPlus.com's New Home Construction Bid Sheet. The New Home Construction Bid Sheet provides you with the knowledge on how to plan a custom home building project, and what to look for when hiring contractors for your new home construction. It also includes a detailed cost breakdown table and spreadsheet for estimating your own new home construction building costs.
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