A Construction Loan is a short term loan that is used to help finance the cost of a building or real estate project. The loan is designed to cover the costs associated with the project before obtaining more long-term funding. Once construction is completed, many people refinance this loan into a permanent mortgage.
Typical Items Needed for a Construction Loan:
- Loan Application
- Borrower Authorization
- Bank Statements
- Picture ID
- Loan Submission Form
- Home Owners Insurance
- Mortgage Statement for Payoff Information
- Purchase Agreement (Contract)
- Construction Budgets & Plan
If Corporation:
- Articles of Incorporation
- Bylaws
- Statement of Information
- Form W9
If LLC:
- Articles of Organization
- Statement of Information
- Form W9
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