Financing Your Project
There are typically two ways to finance your remodeling project; a permanent loan and a homeowner’s line of credit. A construction loan is a short-term loan used to pay the bills necessary for construction while your home is being built. A permanent mortgage loan is activated at the completion of your project. Many banks have a pre approval process to help you get started with both your construction loan and permanent financing.
Pre-approval usually requires:
• Two years federal tax returns and W2’s
• Current pay stubs covering the last 30 days
• A list of current liabilities
Once you and your lender determine what home loan amount best suits your needs, they will provide you with a step-by-step guide to the financing process.