Building your dream home is an exciting journey, but before your lender approves your construction loan, they’ll need specific documents and details to ensure the project is financially viable. If you’re planning to build in areas like Ipswich, Logan, Caloundra, Red Cliffe or Caboolture, here’s a helpful checklist of what lenders typically require before moving forward with your home construction loan.
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.
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.
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.
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.
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.
Being well-prepared with these documents will not only speed up your loan approval but also ensure that you don’t run into any funding issues during construction. Lenders need confidence that the project is thoroughly planned and that all costs are accounted for, from the main structure to any additional features you’ve planned.
Bribie Island Lending is here to help you navigate the process and ensure you’re prepared for every stage of your build. Whether you’re building in North Lakes, Narangba, Morayfield, or Toowoomba, get in touch today, and let us help you prepare for a smooth building process and help bring your dream home to life.
Contact Mark – Mark@bribieislandlending.com.au
We are based on the beautiful Queensland coast, between the Sunshine Coast & Brisbane and we offer a complimentary home loan broking service.
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Thinking about building your dream home? Lenders need specific documents like building contracts, plans, and detailed finishes before approving your construction loan. Bribie Island Lending helps clients in Caboolture, North Lakes, Toowoomba, Caloundra, and surrounding areas prepare for a smooth building process.
Building variations such as flooring choices, extra power points, and kitchen finishes can increase the cost of your home construction. Bribie Island Lending helps ensure your loan covers these potential changes, allowing you to plan for variations in advance. Whether you're building in Ipswich, Logan, Redcliffe, or Caloundra, make sure you understand your full costs before committing.
Before your lender releases the final payment for your home or renovation, three steps are required. Bribie Island Lending works with your lender to ensure everything runs smoothly. Learn more about how we support you through each step of your homeownership journey.
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