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Construction Loan

Activity of Mortgage Brokers / Help of Mortgage brokers

Activity of Mortgage Brokers

By | bad credit, Commercial loan, Construction Loan, Debt Consolidation, Guarantor Home Loan, Low Doc home loans, Low Doc Loan, Mortgage Brokers | No Comments

Activity of Mortgage Brokers

There are many situation, where you need help of Mortgage brokers. For example, you need:

Suitable loan for you

Your Mortgage Broker must talk with you, answer your many questions. This gives him the opportunity to determine which type of loan is most suitable for you.
You will need to provide documents to support your identity and financial situation. Your mortgage broker will advise you of what you need for your particular situation.
If your mortgage broker has an understanding of your objectives and financial position, he will discuss the various loan products available. A mortgage broker should also provide you with product comparisons and inform you of proposed mortgage repayments and any upfront and ongoing fees.

After that, your mortgage broker will search their database containing hundreds of loan products from many different lenders, including major banks, smaller banks, credit unions and other lenders. This database of Premium Mortgage Brokers includes 40+ lenders. We have access to some exclusive loan products which are not available elsewhere.

Manage the whole process

The mortgage broker negotiates on your behalf with the lenders from the beginning of the process and until the loan is settled. Your mortgage broker will help you to complete the necessary paperwork and liaise with the lender on your behalf. Your mortgage broker is also required to inform you of Internal Dispute Resolution procedure.

The responsible lending obligations require a mortgage broker to:

  • Reasonable Inquiries. He make reasonable inquiries of the consumer about their financial situation.
  • Assess whether the credit product is unsuitable for the consumer and only proceed if the credit product is not unsuitable.
  •  Copy of the assessment. He andgive the consumer a copy of the assessment if requested.

Premium Mortgage Brokers are best specialist in SydneySunshine Coast and Brisbane. We also have a list of most popular questions for Mortgage Broker.

How to choose a Mortgage broker?

What is a construction loan? / Qualifying for a Construction Loan

What is a Construction Loan?

By | Construction Loan | No Comments

What is a construction loan?

Construction loan – is a type of home loan designed for people who are building a home. It used to finance the building of a home or another real estate project. Construction loans are very common for house and land packages and consumers who are completing renovations on their existing home.

It has a different loan structure to home loans designed for people buying an existing home. In Australia, there is a large selection of construction loans.

A construction loan will usually be interest only over the first 12 months. Then it revert to a standard principal and interest loan.

Qualifying for a Construction Loan

Banks and mortgage lenders often use building loans for many reasons. building a house the bank will release the payments to the builder over 5 “progress payments”. The bank will usually send a valuer out to your building site after various stages have been completed. It is dooing to make sure the work is up to scratch for that stage of the construction; then they will release the next payment to the builder. Below are a few tips that you may need to know:

  • Fixed Price Builders Contract – Every lender will require a fixed price builders contract so the cost of the build can not be blown out during construction by poor estimations by the building company. This requirement protect you and also the bank.  Your Premium mortgage broker will explain the details of the contract to you in detail.
  • Detailed Specifications. The lender will also need detail specifications to so the valuer can easily complete a valuation using the plans and specifications before the bank formally approves your finance..
  • Approved Plans – the bank will require council approved plans before they issue approval.
  • Home Value – A few months after construction is complete we may be able to ask the lender to order a new valuation on your completed property. If you are lucky, the value of your finished home may be worth more than the combined cost of the land and construction.

Premium Mortgage Brokers are experts in Construction loan. If you want to know anything else please contact us/a>. You can contact us without leaving home.