How Long Does Construction Loan Underwriting Take?
A loan application goes through several channels. That’s why it takes four weeks to three months to complete in some cases. The larger the amount, the longer the process takes. For example, it takes a few hours to process a Mortgage House car loan application; a home loan application takes much longer. The underwriting process involves a team of financial experts who assess risk. Loan specialists gather all the financial documentation from applicants. They create a docket and send it to the underwriting department. Then, the team verifies the information, finances, and property appraisal.
Construction loan underwriting involves a few extra steps. For mortgages, the property already exists; for construction projects, lenders only have vacant land to work with in the beginning. They must assess the market. Most construction projects in Australia reach completion even if they experience delays and require additional funding. The lender must decide if they can handle these types of factors.
Mortgage House loan specialists employ proprietary tools to help them start the ball rolling on construction loan applications. Our underwriting teams use them too. The goal is to render a decision and potential loan terms in a reasonable timeframe. We work with owner-builders and investors. Our experience helps us take on projects that the banks see as riskier propositions. We also help owner-builders roll their loan into a mortgage as the project reaches completion.
Construction Loan Underwriting Conclusion
Mortgage House works to keep the construction loan underwriting in a reasonable timeframe. To start your construction loan application, contact our loan specialists today.