Ready To Build? Key Documents for Lender Approval

Building your dream home in areas like Kincumber, Davistown, or Erina is an exciting journey, but before your lender approves a construction loan, there are essential documents they’ll need. To help you get prepared, here’s a list of what lenders typically require:

1. Building Contract or Tender

The first and most important document your lender will ask for is the building contract or tender. This contract outlines the agreed costs, terms, and timeline between you and your builder. It provides essential details about the total cost of the project, helping the lender determine how much financing you'll need and ensuring that the construction will follow legal requirements.

2. Detailed Finishes and Specifications

Lenders will want to know exactly what kind of materials and finishes will be used in your home. This includes details on flooring, paint, cabinetry, and fixtures for rooms like the kitchen and bathrooms. Having a clear list of finishes and specifications helps the lender ensure that the loan amount aligns with the expected property value.

3. Building Plans

Your lender will also need the full set of building plans for the property. These detailed architectural drawings show the layout, dimensions, and features of the home. Lenders use these plans to assess the scope of the construction and ensure that the project aligns with the value of the loan you're seeking.

4. Details of Any Variations to the Contract

During the construction process, changes or upgrades may occur, known as variations. If you’ve discussed any variations with your builder—such as additional rooms, upgraded materials, or design changes—lenders will need to know about these. It's crucial to inform them in advance so that they can factor these adjustments into your loan and prevent any funding shortfalls.

5. Quotes for Non-Contracted Works (Sheds, Landscaping, Fences, Pools)

If your dream home includes additional features like a pool, landscaping, fencing, or even a shed, lenders will need separate quotes for these items. Since these are often not included in the main building contract, you’ll need to provide a breakdown of the costs for any non-contracted work. This ensures that all aspects of the project are covered in the financing.

Preparing for a Smooth Building Process

It’s crucial to have all these documents in place before applying to ensure your construction loan is approved without delays. At Central Coast Mortgages, we guide clients from Saratoga to Avoca Beach through the process to make sure you’re fully prepared. By providing your lender with these key documents early, you can avoid potential roadblocks and keep your project on track.

Final Thoughts
Getting ready to build is a major step, and having the right documents is essential for securing a construction loan. From Gosford to Terrigal and beyond, Central Coast Mortgages is here to help you navigate the process and ensure you’re prepared for every stage of your build.

Contact Katrina – Your Local Construction Loan Experts
Email: katrina@centralcoastmortgages.com.au to discuss your construction loan today!

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