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Building Your Dream Home in Kentucky

Building Your Dream Home in Kentucky

Building your dream home in Kentucky from ground up, your own plans, and being able to choose every item in the home down to the faucets and light plates, can be a wonderful experience. It also can be a costly experience if you don\\\'t have the right residential new home construction loan to help you afford this dream. Below are some requirements that you\\\'ll have to plan to secure ahead of time before you apply for your Kentucky construction loans. Being prepared will help you get your construction loan approved when you are ready to build.

The Land

Before applying for a construction loan the land must already be purchased and titled in your name. Though some loan companies do offer land purchase loans as well, it is a separate loan and not included in construction loans. If the land is purchased on a loan remember that your total loans need to be repayable within the means of your income.

The Home Plans

The application process for Kentucky construction loans is slightly more detailed than a regular mortgage loan application. In the latter, the collateral is able to be appraised so the loan company knows what is being secured. That is the type of information that you need to provide to the loan company. Since you are building, they need to know that the new construction will be completed with no problems from acquisition of materials to permits for all phases of the construction.

Besides owning the land, you\\\'ll have to have your plans created. They should be buildable plans. You\\\'ll need an architect to draw those to your specifications and within the guidelines of your county or city. 
You will also need to secure a builder. The builder will be able to complete the cost estimations, including permitting costs, that need to be submitted with your Kentucky construction loan application.
If you believe you are credit worthy for a large loan, or jumbo loan, include every aspect in the construction loan application including any landscaping, detached garages, or pool bungalows for example.

Your credit worthiness, the amount of your loan, and the preparations you make ahead of time may all effect your construction loan rate. To keep your dream home out of financial fiasco, talk with a Kentucky construction loans advisor at the onset of your preparations.