Applying for construction loans means understanding the documents any lender will want to see. Here’s a brief checklist to follow.
- Many lenders want to start the process off by understanding the approach to the project. You’ll need to detail whether a general contractor, turnkey builder, or the borrower will be conducting the work.
- A general application can include the personal net worth of the major individuals involved as well as business and individual credit profiles.
- The lender will also want to see a series of drawings and plans that have been approved and completed for construction loans.
- The budget is important. The more detail, the better your application looks.
- The building timeline comes next. The lender will want to see this so they can establish a draw schedule. This is important because it eliminates chances of misunderstandings when it comes to the timeframe for advancing funds at given stages.
Keep in mind this is not a comprehensive list of lender requirements. However, this is a basic framework for the items that will typically be needed for a commercial or residential project.
Every construction project is different. Unique features and time frames will change the kind of lender requirements asked for.
OMJ Mortgage Capital is a commercial mortgage broker located in the greater Toronto area. Our specialties include financing for luxury properties as well as commercial, land, and construction projects. We have successfully funded billions of dollars in loans to all different types of lenders.
We have an unwavering commitment to arranging commercial mortgages through our comprehensive network of lenders. Our priority is to exceed your expectations and help you achieve your business and financial goals. Get in touch with us today so we can partner with you on your latest construction project. We are looking forward to helping your business.
