By starting the process now, most of the time-consuming paperwork, such as verifying income, assets and credit can be well underway by the time your blueprints are completed.
Knowing how much money you have available will allow you to inform your designer and construction manager of your budget. An experienced builder will be able to assist you in creating the perameters needed to keep the design of your house plans within your budget.
Whatever amounts you indicate must be verified in writing by your employer and/or through other documentation required by the lender. Make certain that all sources of income for both borrower and co-borrower are included.
Planning the right home using the right budget is a very important factor in planning your home. If you have any questions as to what will qualify as income, ask your loan representative.
Money available may come from various sources - current savings and checking accounts, mutual funds, stocks and bonds, equity from the sale of a current home, and most importantly, the (self-created) equity in the new home you are building.
All lenders will require a credit report that discloses all of your current and past credit arrangements. If obligations are shown that were not indicated on your application, you will have to be re-qualified with those obligations included. This may cause delays in your new home planning stage.
Your lender is in the business of making loans available for you project, but from time to time additional information is needed to process your loan approval. Your immediate attention and cooperation will make the job of processing and approving your application faster and more efficient.