How Do Construction Home Loans Work?
Banks have a slightly different mortgage quote process for setting up construction loans as compared to a regular home loan for an established house. When you buy an established house, the bank extends the amount of money you borrowed in order to complete the purchase and you simply move into your new home. With construction loans, your bank will generate a set of progressively drawn payments that add up to the total amount you borrowed. As your builder builds your home, your bank is sent an invoice for each stage of construction as its completed. Your loan is drawn several times until the builder has been paid, your house is complete and then you get to move in once all these stages are finalised. It sounds complicated, but you dont have to work through it alone. You have the option of working with a qualified, professional Choice Home Loans consultant who will be happy to walk you through the process so theres no confusion.
