If you wish to build your first home next year but lack the finances to do so, you may wonder if you qualify for a first-time home buyer loan. If you work hard to improve your credit and manage your current expenses properly, you may be able to obtain a loan to purchase your first home. You must also consider other things about obtaining a loan for a new construction home. Learn more about new construction homes and how to obtain a first-time buyer loan for your home below. 

What Should You Know About Building a New Home?

A new construction home requires you to build it on a plot of land. The land must be safe, sound, and strong enough to support your new home without compromising its safety or integrity. A loan or mortgage company may wish to inspect the land prior to financing the construction of your new home. 

The land must also be zoned, or placed, properly in the community. For example, you can't build a residential home on property zoned for agricultural or commercial usage only. However, you can build a home on land designated for residential and commercial use. You can generally learn more about your state's zoning laws and regulations by contacting a real estate company or new construction home-building company. 

In addition to the requirements above, many loan providers require you to obtain assistance from a building contractor prior to obtaining a loan from them. A contractor can create the architectural drawings you need to construct your home. A loan company needs to see if the home will be constructed properly before they lend money to you.

A loan company may also need to know how much money you need to obtain in order to build your home. If possible, have a contractor calculate or estimate the costs of building your home for you, including the purchase cost of the land you plan to build your home.

Once you meet the requirements, you may apply for a first-time home buyer loan. 

How Do You Complete Your Home Loan Application?

A loan provider may ask you to fax or email copies of your architectural drawings and the names of your contractors to them when you complete your application for a loan. A provider may use the information to calculate the amount of your first-time buyer loan. 

If you qualify for a loan, a provider will contact you to go over the loan and any other information you need to know about it.

Learn how you can obtain a first-time home buyer loan for your new construction home by contacting a loan provider today.