What do you require for review on a residential construction loan?

TIPS ON RESIDENTIAL CONSTRUCTION LOAN - here’s what you need to ask for preliminary review and to have an overall understanding of the project/ borrower and exit etc. 

1. Where is the property?
2. Budget 
3. Drawings 
4. Who is the GC/ experience in building similar asset
5. Timeline for completion
6. End use of property 
7. As is and end value - do you have an appraisal ?
8. When did you purchase and what was the purchase price?
9. Annual property tax amount and is it up to date? 
10. Current mortgage balance , who is the lender, maturity date and is it up to date? Mortgage statement even if it’s old. 
11. Loan amount request 
12. What are you looking to build - how many sq ft, bedrooms, washrooms, storeys, garages?
13. Will there be a finished basement ?
14. Income details- approx annual income / sources of income for all borrowers. 
15. If the property is under a company’s name - provide the articles of incorporation. 
16. If self employed - provide recent 6 month business bank statements 
17. Do you owe any income tax? If so, how much? 
18. Do you own any other properties ? If so have the borrower complete your DCR 
19. Recent equifax report for all borrowers - you can pull it online at www.equifax.ca however the broker or lender will pull credit if proceeding. At this stage it is best that you pull it online as it does not affect your credit score. If you cannot then with your consent the broker or lender will. 
20. Where will you reside once construction commence ?
21. Do you have Permits in place or what is the city position ?
22. How much did you spend to date for soft cost and what has been done? 

Hope this is helpful for agents and the general public who need to understand what is required at the initial stage when inquiring about a residential construction loan. 

WE DO FUND ON THESE TYPE OF LOANS. 

CONTACT [email protected] or call 6474949885 ext. 107