When applying for a construction loan, be sure you're prepared with all the paperwork you'll need to make your case. Not only will you need the basics, like your tax information for several years, you'll probably also need to provide plans for the construction, and possibly a building permit.

Construction loans are ideal for residential needs, especially when you're building a home from the ground up. However, it can be a difficult and scary process to acquire one. It's a good idea to make sure you're pre-qualified for such a loan before you jump right in.

A construction loan includes several facets that you'll need to see to. Home (or storefront) design, construction costs, the cost of the building site itself, and the cost of the financing should all be taken into account when you're applying for a construction loan.