If you are looking and deciding to build a Custom Home, most likely you will need a Construction Loan. A great home builder will assist you in securing a construction loan for your custom home project. Knowing what you can qualify for on a mortgage is a big part of the puzzle regarding building a new custom home. A good builder will often recommend to clients that if they haven’t already done so, to make sure they get pre-qualified for a mortgage. That will allow them to arrive at a reasonable home budget. A good builder will be able to recommend several lenders they have worked with or will allow you to use a lender you already know. Determining this initial budget should be the first step in arriving at a lot and home design that will work for you. Good custom builders are well-networked and can involve a lending team that can get your custom home deal funded in a smooth manner. Many banks right now are not doing construction loans, so it is important that you touch base with your builder and make sure he works with lending institutions that are doing construction loans. All construction lenders right will give preliminary approval based on a budget but will make the final approval contingent upon the appraisal. There are also many things the lender will review, including your credit score and your income before making a decision to loan you the amount requested. The lender will require a deposit or a lot to substantiate the construction loan. Typically the deposit or lot must be approximately 20 to 25 percent of the loan value. The lender will typically lend up to 70 to 80 percent of the appraisal value. Appraisal values can be the final reason for a declined construction loan, so just be aware nothing is “a sure thing” in these times. In order to get an appraisal you need plans, specifications and a budget. And to realize all these requirements-Homechoice Planners expertise is really best for you.