As a custom-built home builder, we can’t also inform you exactly just how clients that are many arrive at me personally with concerns about receiving a construction loan. They hear or read online that construction loans are harder to have than regular mortgages, or that the procedure is extremely tough.
You so it doesn’t need to be hard or complicated, so long as you’re dealing with experienced experts who know very well what they’re doing.
We’re fortunate enough to have Dino Paone from Santander Bank to simply help us de-mystify the procedure. Dino has been kind enough to respond to several of the most questions that are common have from prospective home builders.
What’s the difference between finding a regular home loan and getting a construction loan?
Finding a construction loan is really nearly the same as finding a regular home loan. The differences that are main:
- Construction loans need more documents, such as for instance plans, price sheets and builder agreements. A listing of needs will soon be supplied for your requirements by the loan provider.
- Construction loans require more dialogue that is upfront lender expertise.
- Construction loans could be more tough to be eligible for in some instances once the customer happens to be having to pay a home loan or lease while simultaneously holding the construction loan and costs that are related. Read more “A job Interview with a Real-life Mortgage Professional”