The idea of building your new dream home can be both very appealing and very exciting. If you are deciding to build you new dream home, there are a lot of things you need to consider prior to commencing your building project, for example, you may have to decide:
>> Do you want to demolish the existing home you live in andto https://syanetsugaiheki.com/ re-build a new home?
>> Do you want to purchase vacant land and construct a new residential dwelling on the purchased land?
>> Do you have ready cash available to cover the construction costs?
>> Do you have to get a Construction Loan (also known as a Building Loan or Construction Mortgage) to fund your building project?
>> If you are a first home buyer, you will have to find out about the Government’s First Home Owner Grant Scheme
Once you have decided on the above-mentioned factors, you will have to start your work on construction home loan or real estate finance which is secured by a mortgage on the property being financed.
Lenders/credit providers have different construction time frames and drawdown schedules that they allow for construction loans. However, most are similar, and here is a quick synopsis of how a construction loan works:
>> The lender/credit provider will fund the loan amount required by you to cover the cost of purchasing the land and for the building construction costs
>> He/she will break down the loan amount into progress payment amounts drawdown, which are made to your builder as each stage of construction is completed
>> He/she will require the construction of your new dwelling to be completed in the short-term (usually from 6 months to three years)
>> He/she will take required real estate security by securing a mortgage on the property being financed