Building your own home is one way to stop renting and finally start owning your very own home. However, buying land and building a home is not exactly easy to do. When you consider the amount of money needed to build a house, it can be a financially challenging task for most people.
That is where construction loans come in, and we at Stop Renting Perth have been helping people get construction loans here in Perth. Construction loans might seem complicated at first, but once you know how they work, it can be much simpler for you to get a construction loan. So, if you are also planning on getting a construction loan, this article will explain how construction loans work, so read on.
Construction loans are your ticket to go from rent to your own home in Perth
At the very basics, a construction loan is a form of home finance that you can get only when you plan on building a home on an empty piece of land. We recommend home loans to people looking to go from rent to having their own home in Perth looking for an alternative to buying a prebuilt home.
A construction loan will cover all the costs involved in building your home, so once we help you get approved for a home loan, you can start building your home without worrying about financial hurdles. The amount of a home loan is given in portions at different steps of the construction process. However, you have to put down a down payment just like a home loan, and this amount covers the initial construction costs, including the price for building materials.
How do payments of construction loans work?
We have helped a lot of people who were sick of renting in qualifying for home construction loans. Once we help you in qualifying for a home construction loan, we will give you an estimate of the cost of building the home, and the amount will be divided into different sections. These sections of payments are as follows:
First stage: The first loan payment of your home construction loan covers the cost of building the foundation of your home.
Second stage: The second loan payment comes in to cover the cost of building the frame of your home, and this loan payment will be used to make the frame, roof, and windows, among other parts of your home.
Third stage: The third loan payment is also the largest payment of your home construction loan, and this payment covers the cost for construction elements that will seal up your home. During this stage, walls, doors, insulation, and other sealing and closing elements are installed in your home.
Fourth stage: The fourth payment for a home construction loan comes in to cover the cost of fittings that go into your home.
Fifth stage: The final payment covers finishing touches, including the cleaning up and polishing that is needed and any additional work.
Ready to go from rent to having your own home in Perth? Just get in touch with us to start building your dream home.