If you're looking to build a home or to renovate/extend an existing home, there are a range of loan options available to help you have the finance available to fund your building needs as the project unfolds.
Construction lending is a process rather than a one-time transaction. Complications can occur both because you’re buying something that doesn’t yet exist (the home) and/or because the land will need to be individually titled before your lender will provide the finance. Through the process you will need to cover your current mortgage / rental expenses as well as the draw downs of the mortgage through the construction of your new house.
Pre-approval is the most important first step to planning a new home or extension. This is the stage where you will find out for sure whether you can afford to make your dream come true based on your current assets and existing debt. The quality of the lender is an absolute key.
I recommend you only deal with a lender who has a lot of experience in construction financing, with a good reputation amongst the finance industry.
Not all lenders handle construction financing; others handle it, but maybe not well. The best construction lenders provide you with the right options to best meet your unique needs and provide great service.