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Tips For Buidling A New Home - How to Make Sure the Process Runs on Time and on Budget Getting a Construction Loan The typical construction loan is a temporary financing that supplies the borrowers and their contractor with the money to construct a new house. The construction loan in some cases will only cover the actual building of the house, and not the procurement of the lot on which it will be put up. Construction loans are riskier for the lender. The general practice is for the temporary construction loan to be refinanced with a “permanent” mortgage loan, upon completion. A new construction to permanent loan
program combines the construction and permanent financing of your project.
You qualify for the loan once, lock in the permanent rate, sign one set
of loan documents and have up to 12 months to complete the construction.
For the duration of the construction period, interest is charged only
on the funds that have been paid out. The permanent loan period starts
when the project is finished. Criteria
for Choosing a Builder If you pick a lemon of a developer, not only are you likely to suffer
during the building and closing of your new house, but you’re likely
to have long-term problems after. You have several choices. You can choose
a large local developer, with successful developments around the area.
Or, you can find a small builder, who often has everything riding on a
single development. Avoid Home Design Fads Finding
the Lot that Works for You The Construction Process |
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