Construction Loans For New Home

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Construction Loans For New Home


Apartment Listing  

If you are planning to construct your new home, and do not have the bank balance to finance the cost of the entire project, do not worry. Construction loans are a great option for future homeowners.

Here are some steps you should keep in mind before opting for a construction loan:

  • Learn about all the options available: Today, construction loans are available for a variety of terms from the 30-year fixed loan to the 1-year interest-only loan that is refinanced into a normal mortgage once the construction is completed. However, this requires a second review of qualifications and two sets of closing costs. Thus, the new ‘one time close’ construction loan only charges one set of fees and closing.
  • Prequalify yourself for the loan: This way you will easily be able to figure out if you can afford the requested loan amount. You will get a good idea of the size of your monthly loan payment, before you purchase the land. The loan officer will need to know all the necessary details of construction such as the rate at which you intend to complete it, the reasons why you want to finance this project and many more. Construction loans are extremely contextual, and your options and rates will be extremely different if you aim to live in your house after constructing it, as opposed to an investor who plans to resell immediately.
  • Look around: Do not opt to take a loan from the first bank you approach, instead consider all the products in the market. Most banks have very few products relating to construction. Instead, if you contact an experienced construction loan broker, your search will be easier.

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Construction Loans For New Home

 
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Home Loans :

Definition-Construction-Loan      Construction loans are sums of money lent to future home owners to pay for the construction of their homes. The completed house serves as collateral. Construction loans are extremely contextual. The lender usually needs to know every little detail about the planned construction before sanctioning the loan. More..



 
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Construction Loans For New Home