STEP 3 – Pre-qualification and Project Budget
Once your Loan Consultant has the required credit, income & asset information, and has determined creditworthiness, you will receive a pre-qualification letter. You will need this letter for your land purchase offer, if you are purchasing land.
Your Total Project Budget will include the purchase price or pay-off of the land (if applicable), plus all costs for the land improvement and the construction of your home. This is a turn-key project for your builder and no self-help is allowed.
Your Loan Consultant will discuss what funds will be required at closing:
- *Closing Costs
- Homeowners insurance policy
- Property taxes (if applicable)
*In some situations your builder may be able to contribute funds towards your closing costs.
Construction interest payments will be required during the course of construction, except on VA OTC Loans. You will be required to make monthly, interest-only payments during construction and up to completion.