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Consruction loan credit credit checks

Discussion in 'Property Finance' started by Moist, 14th Nov, 2015.

  1. Moist

    Moist Well-Known Member

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    Hello,

    Does anyone know if lenders check your credit file each time you make a progressive drawdown on a an already approved construction loan? or just at the beginning before you start building?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Just at the beginning for the one I'm currently doing.

    Valuer visits prior to every progress stage payment to ensure its done, though.
     
  3. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    At application - the progress payments are handled by the construction teams who just verify works completed and then distribute funds as necessary. Would be very nasty otherwise!
     
  4. Moist

    Moist Well-Known Member

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    So just to confirm, each drawdown would not leave a separate enquiry either? CHeers
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Nope, otherwise people would have like 6 hits per dwelling they built and no one would ever be able to get loans again.
     
    Moist likes this.
  6. Moist

    Moist Well-Known Member

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    Do lenders know if you proceed with an inquiry? or just that you made an inquiry?
     
  7. tobe

    tobe Well-Known Member

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    Historically just made an inquiry, however some lenders are slowly starting to report more information.
     
  8. Moist

    Moist Well-Known Member

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    Which lenders might be reporting more information?