 TITLE: How Do Home Construction Loans Work? CONTENT: Things to Consider Before Applying for a Home Construction Loan\n---------------------------------------------------------------\nIf you decide to apply for a home construction loan, ask these four questions:\n1.  Is your debt-to-income ratio low enough to qualify for the loan? If it's not, work toward reducing your debt or bumping up your income to improve it.\n2.  Do you have enough money set aside for a down payment? If not, begin saving up to make at least a 20% down payment.\n3.  Where does your credit score stand? If your credit score is below 620, focus on reducing debt and paying bills on time to raise your score.\n4.  Do you have all of the necessary paperwork? A lender may want to see pay stubs, tax returns, bank statements and other financial documents before approving your application for a home construction loan. END