When you are busy planning the construction of new homes and lining up prospective buyers, the last thing you have time for is reviewing new home construction loans. Don’t just assume that all lenders are alike, because if you choose incorrectly, you could be paying for it with your time and money. Be sure to inquire with the lending institution some of the following points when you are in the market for new home construction spec loans.
* Convenience is the name of the game today with new home construction loans. Your lender should be able to close on the loan within 30 days of the papers being in order. If you are buying several lots on a property, the lender should be able to line up all the closing in a row.
* Don’t be afraid to give the lending institution a list of concerns you have at the start. Better to get the answers now than to discover at closing you are paying more than you bargained for. Start by asking about retainage hold-backs, builder approvals, and what type of draw schedules are available.
* It is important that you only have one loan originator to be dealing with during the entire new home construction loans process. If you are only dealing directly with one originator, then you only have one relationship to worry about. One relationship means that your needs and all concerns will be handled more efficiently through the entire application and closing process.
* One of the things you should be considering is that the lender offers in-house financing. The more of the processes that can be conducted with the same group of individuals, the faster the entire new home construction loans will move along.
* Don’t be afraid to show up to a prospective lender with a list of your questions or concerns and expect clear answers. This is your chance to get all the details in writing so that you are not surprised at closing. If the lender balks or is slow to address your concerns, then there are plenty of other new home construction loans that are being serviced in your area to consider.
As you can see by all these tips from ConstructionSpecLoans.com, not all new home construction loans are alike. By taking the time upfront to make certain everything is in order, you will have a more streamlines closing that will result in the building of more homes in a timely manner.