should i do up my house plans, get 2 contractor bid estimates,take out life insuran.,credit ref.then go4loan?

Question

i want to apply for a mortgage loan, and i want to know what steps i must do before i walk into the bank

Answer 1

Get your financial facts together and walk into the bank. Life insurance is not relevant; they'll run a credit report, but you still need to provide the creditor data; if you're trying to finance new construction, they'll want much more than plans. A construction loan is different than a regular mortgage, and they'll have different and very strict requirements.

Answer 2

The first thing you need to know is how much you need to borrow and the projected cost of the property and house you plan to build. What would the value be after completion.

In order to do this you need to have a copy of the plans, cost of construction, plans and permits to do the construction. You will need to know the number of square feet, number of floors, if there will be a pool, basement. Estimated time of completion.

So you need to contact a person in the construction field, most will have an architect to assist in drawing the plans.
Get at least three (3) estimates.

Now once these things have been accomplished you should then get your financial documents you will need to take to a mortgage broker.

#1 One month of pay stubs

#2 Six months of bank statements from each bank you are currently using as well as statements from any stocks/bonds and 401k plan you are enrolled in.

#3. Two years of federal income tax as well as the W-2's

These are only a small portion of the documents you will need to close a mortgage loan,but these are the basic ones. You will be told when to bring additional documents and information when it is required.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

I assume you are looking to have custom home built? Most contractors wont use handmade plans made by a client. They have to be done professionally by a design engineer or architect to ensure that building and municipal codes are followed. there are several Custom-home subcontractors out there, call a couple and they will make your designs for you as well as give you an estimate so you know what to ask the bank for.