For those who own a lot, building their dream house is possible through loan financing. The advantages of building your own house is customized the design and features you want and lower the repair cost since you will be using quality materials.
Make sure also to have start up money before proceeding to house construction loan. You will need to pay for building permit, house plan, down payment for the house construction, loan processing fees, etc.
Here are the steps or process of obtaining house construction loan:
- Prepare necessary document to be submitted to your lender. These documents include lot tile to be used as collateral and proof of income such as payslip, annual tax, etc.
- Meet your lender either bank, in-house financing, or Pag-ibig to get pre-approved in order the amount you can afford.
- Decide what kind or type of house you want.
- Choose a contractor or house builder and get quote. Hire a builder with a strong reputation.
- Submit required documents on your lender in order to process your loan and wait for approval. Your lot will be your collateral to your house construction loan. Other documents are house plans and specifications, contractor’s agreement, vicinity map, total house estimates, etc.
- Your lender will visit the site in order to evaluate the construction of house such as the percentage of work. The initial payment of is depends on the work completed.
- The lender will usually pay after each interval of work is completed. It usually four installment payments.