One thing to remember when you are shopping around for financing of your new home construction spec loans is that not all lending agencies are alike. Don’t get lured in by commercials with paid actors or by fancy marketing ploys, it pays to take the time up front to do a little research on the lender you will be doing a considerable amount of business with. Keep in mind some of the following the next time you are in the market for new home construction financing. Here are some points from the professionals at ConstructionSpecLoans.com:
- It is so important to be working with one originator when you are in the business of building new homes. Once you develop a relationship with the one lender, future transactions get easier as the lender begins to better understand all of your needs and how you run your business from day to day and well into the future.
- You only have one initial meeting with the lender, that is the time to get all your questions answered. The new home construction loans lender show be clear and transparent about everything so that all your concerns are addressed and you have no doubts. Be sure to ask about the financing being done in-house as opposed to getting another agency involved.
- Mention to the new home construction loans agency about how multiple land purchases are handled if on the dame lot. The better lending institutions will be able to line up all those closing one after another so you are not being burdened with having to show up to closings scattered all over the month at the convenience of the lender.
- Inquire about how the loans are underwritten. If the lending institution is dealing with a third-party underwriter, you want to know that up front. The reason being is that these outside agencies tend to slow down the application process to the point it will negatively impact your business. Slow construction approvals mean that your competition is getting the jump on new land while your underwriters drags their feet.
- Be sure you get a solid answer as to how long it takes for the approval process to complete. The more reliable lending institutions will be able to complete the closing within 30 days of all the plans and final contracts being in place.Now you see the differences in new home construction loans and why it is so important to take the time up front to get answers to your numerous concerns.