Submitting a development finance application can be nerve-wracking; if you've set your sights on a project and been turned down for the borrowing you need, it can be a huge blow.
The trick is to ensure that all relevant information is included clearly and understandably. The fewer questions your lender is left with, the smoother the application process!
In this guide, we will explain our top tips for application approval. For further advice and assistance contact the Revolution Brokers team on 0330 304 3040 or email us at firstname.lastname@example.org.
Make Sure the Data and Figures are Accurate
It seems obvious, but it's common to use projections and estimates in a development finance application.
However, you need to:
- Use reliable, quantifiable estimates where exact figures are not known.
- Make sure all the figures add up - triple check your sums.
Multiple mistakes on an initial application significantly increase the chances of rejection, so check your data thoroughly.
Present your Application in an Understandable Way
If you are trying to explain budgets and figures, this needs to be laid out in a way that is simple to read. Scribbled notes, jumbled figures and vague descriptions are very likely to result in a rejection.
- Use a spreadsheet to present figures.
- Make sure drawings or illustrations are labelled and marked.
- Spell check your text and ensure it is accurate.
Don't Overstate Your Development Experience
It's normal to want to exaggerate your experience to improve your chances of approval - but lenders will verify any experience you mention. They will usually ask for property details and images, so if you don't disclose that it is your first development, the lender will find out.
False claims on an application will be an immediate rejection.
Be Realistic with your Estimates
As with experience, a lender will check and evaluate everything on your application - including possible sale prices.
If a project looks to have excellent margins, it will be of more interest. Still, the lender will look for the valuations of similar properties in the area, and quickly identify if the projections given are not viable.
Work Out Your Budget Thoroughly
Lenders will need to know the overall build costs - but also how those costs will be spread over the project duration. Break down the costs month by month right from the start, and a lender will have more confidence that you will be able to manage the cash flow.
By following these steps, you present a thorough, accurate and viable development finance application that stands the best chance of approval.
For more support with submitting your application, or identifying the right lenders to apply to, contact Revolution on 0330 304 3040 or email us at email@example.com.