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Get The Home Construction Loan You Need

Understanding the borrowing process of obtaining a home construction loan before you begin will increase your chances of getting it.

First, for your home construction loan, make a list of your income that includes:

  • Monthly Income-Wages before taxes or deductions
  • Monthly Income-Investment income before taxes
  • Monthly Income-Income from rental properties
  • Monthly Income-Other Income
  • Choose Your House Plan

Next, list your payments:

  • Monthly Payments: Auto Loans
  • Monthly Payments: Student Loans
  • Monthly Payments: Rental property loans ($0 if refinancing)
  • Monthly Payments: Other payments (*Include only loans that won't be paid off in 10 months)

Now note:

  • Other Monthly Debts: Alimony
  • Other Monthly Debts: Child Support
  • Other Monthly Debts: Credit Card Payments
All of this is information your lending institution will want.

Use the loan mortgage calculator below. Plug in the amount you think you want to borrow. Choose your interest rate. Then decide how many years you want to make payments. You can then see how much you'll pay over the life of the loan. Look at how much principle and interest you will pay. This information may make you rethink how much you want to borrow. There's an old saying, "He who truly understands interest lends money - doesn't borrow it." Use the free loan mortgage calculator tool to help you determine your goals!

Credit Check

One of the first things a lender will want to do is check your credit. In the beginning when you are doing your preliminary loan shopping, let the loan officer know you do not want your credit pulled yet unitl you have chosen a lender.

If you pull your credit too many times, it will lower your credit score!

Wait until you have two or three good lender candidates. Apply to each within a few days time period. Generally, this will be counted as "one" shopping period and not lessen your score.

Checking your own credit does not lessen your score. You are entitled by the Federal Government to one free credit report per year, but it doesn't include your score.

Visit FICO Score & Credit Report or another good credit agency and find out what your score is.

Your score has an effect on what interest rate you can get, which can save or cost you thousands of dollars! Your monthly payment will be affected as well, higher or lower, again depending on your score. And a higher credit score will increase your chances of getting a loan.

Gather and review all this information. Fill out a loan application in private. Try to look at it objectively, like a loan officer will. I you think it might need work, then spend a little time cleaning up your credit, paying off some credit cards, or what ever it takes to turn your dream into a reality.

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