It will depend on each bank, however it is necessary to have a land, which has feasibility of drinking water and sewerage. On the other hand, it is necessary before designing a pre-evaluation to know the amounts of approval by the bank in order to develop a project that fits the budget. After that, the project is entered into the construction management, and with the approval plus a budget for the work, the self-construction credit is requested, which works as follows:
The client contributes the advance of approximately 20% directly to the builder. As the project progresses, the builder makes payment statements according to the physical progress of the work. The bank sends an appraiser on a monthly basis and releases payment statements according to the advance in bullet credit format to the client. At the end of the work (with the municipal reception) the bank consolidates all the bullets in a mortgage loan.
You can read more on our blog, in the article “Everything you need to know about loans and financing.”