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Based on your individual situation, your lender can explain your options. Eligibility and requirements will be based largely upon financial and credit history. Please keep in mind, there are loan programs available that allow borrowers to buy or construct a home with small down payments. In addition, our lenders will look at any existing debts you may owe and your down payment amount. To pre-qualify, you must demonstrate that your income will cover loan payments, closing costs and other loan expenses. BankWest requires that you pre-qualify for your permanent mortgage before the interim construction loan is considered. The first step in building your dream home is meeting with your BankWest lender to determine how much you can borrow for your construction project. The mortgage will be paid back monthly for a period up to 30 years. Once your home is built, a permanent loan or “mortgage” will be made to pay off the interim loan.It is important to work closely with your lender during this time to assure a smooth transition between loans. Interest is paid monthly on this loan and it has a maximum term of 12 months. The initial interim construction loan allows for advances or “draws” to pay for building expenses during construction or remodeling.Your financing package will actually include two separate loans. Step 6: Closing on Your Permanent Mortgage Step 5: Locking the Rate on Your Permanent Mortgage

Step 4: Drawing From Your Loan and Monitoring Outstanding Balances

Step 3: Closing on Your Interim Construction Loan Step 2: Choosing Your Contractor, Building Site and Floor Plans Step 1: Pre-Approving Your Permanent Mortgage With this in mind, we are sharing these six basic steps to securing a BankWest construction loan and ultimately converting it into a permanent mortgage. The key to a positive home-building experience is understanding the construction process and how a construction loan works.