Cindy Del Rio, Negosentro.com | Now people apply for low doc building loans or development loans from the banks and private lenders. However, it is not an easy task and people need to fulfill each loan eligibility criteria before applying for the loan. In this regard, you can take help from the brokers and they will arrange the low doc building loans for your construction. Else, you can check the eligibility criteria of different lenders and then apply through their official online loan application portals.
How much loan the lenders can provide for the construction?
In case of low doc building loans, the leading lenders shall provide maximum 80% value of your property and the cost of the construction. However, it depends on your property value and the nature of your construction. You need to appoint licensed builders for the building loans, because no lenders shall provide you single amount for your construction without verifying the license of the builders.
Then you need to submit all your property documents along with your financial statements. In this case, you need to submit your bank statements, account letters, income proof, residential address proof, and citizen proof to the lenders. Apart from that, you may require submitting your credit statements also. The lender or the bank will check your documentations and then they will disburse the loan according to your property value.
- You need to produce papers of the licensed builders with home warranty insurance documents for the loan.
- If you are a self-employed professional, then you need to submit your financial documents along with your income proof to the lenders.
- You can apply for the low doc building loans for several construction purposes like for building your duplex, granny flats, weekend or for holiday homes and for small development to your property. However, for the home extension, you need to apply for separate loans.
- You need to submit several documents for low doc building loans including your tax returns, copy of building contract and construction tenders, approved building plans, specification of construction plans, building permit and construction certificate, builder’s insurance and builder’s public or risk insurance papers.
In this case, you can consult with loan brokers and they can arrange all your documents and fulfill your borrowing criteria. They have good tie ups with leading private lenders and banks. Moreover, they can compare the rate of interest and choose the best loan for you.
How to get low doc building loans for bad credit scorers?
If you have a bad credit score, then it is impossible to borrow the low doc building loans from the leading banks, because they will check your credit score and they cannot provide loans for negative or poor credit scorers.
In this case, you can take help from private lenders. If you approach them positively then they can disburse your loans. Bad credit score depends on several factors like if you did not submit your last tax returns then it will reflect on your credit score, similarly, if you did not make your previous repayments then it will reduce your credit score.
Therefore, if you haven’t submitted your tax returns in last year then you need to pay the return and wait for the loan for next one year, because this return will reflect on your credit score on the next financial year. In this case, you can approach to the lenders and they can provide you the loan based on your account’s letter and income declaration.
So, build your dream house and apply for the low doc building loans for your construction process. It has many benefits.