How Long Does a Construction Loan Appraisal Take?
Obtaining a construction loan takes several steps. The process is similar to the home loan process in many respects. Existing homes and proposals for new ones require an appraisal. Lenders issue financing for purchase and construction projects on a loan-to-value ratio. For example, first-time homebuyers can obtain between 80% to 110% LVR. It depends on their financial circumstances. The homebuyer might request a $500,000 mortgage. What they obtain depends on the value of the property among other factors. It works similarly for construction loans.
A construction loan appraisal can take between two to four weeks to complete. Since nothing exists on the land, loan teams will evaluate the land and the market. The time it takes to complete the appraisal also depends on the location of the appraisers.
Mortgage House follows the same process when owner-builders and investors apply for our construction loans. Our loan specialists have access to proprietary tools to help them evaluate the applications promptly.
The appraisal process also involves additional steps such as:
- Fund disbursement timeline
- Understanding the potential costs of the project
- Verifying land ownership
Owner-builders and investors can discuss their financing needs for construction projects with our Mortgage House team. Plus, individuals have access to our online resources. For example, owner-builders can explore their mortgage choice options before the construction loan becomes due.
Construction Loan Appraisal Conclusion
Although the construction loan appraisal takes between two to four weeks, Mortgage House loan specialists work to keep the process at a steady pace. Contact our team today.