Construction and finance
Designing and building a new home from ground level is a challenge in itself. However, when you must take into consideration the financial issues and meeting the demands of contractors, then you could need some qualified professional help along the way. Mortgage brokers are not only highly qualified but also possess a unique expertise and experience regarding financial issues related to building projects, in particular, construction loans.
Experience is a priceless commodity, and for you to achieve your goal of building a home, you do need financial support in the construction stages. Your mortgage broker provides different areas of expertise including loans that will provide you with necessary cash during various construction phases. You are given access to quality financing facilities, thus eliminating concern about having readily available cash for crucial materials and labor. An added bonus is that during the construction process, the financial aspects are cared for on your behalf, enabling you to concentrate on your new home construction.
Your construction loan
The obtaining of a construction loan involves discussing the project with your broker, and once your personal information has been given, the process to help you secure a mortgage begins. You can be offered options relating to single or 2 unit residential property loans, which are ideal for single-detached or semi-detached dwellings. On approval of your loan, during the project building phase, you will be given multiple advances that provide you with much needed financial assistance by way of the construction loan for your project during building.
A qualified appraiser will upon each building stage being completed, provide a progress report, which will effectively release the next payment of money for your continued construction process. There are various options available to you, including self-build, contractor and builder financing, and with potential availability of financing for as much as 95% of the Loan-to-Value (LTV) ratio.
You do have options when negotiating a construction loan such as selecting interest-only payments during the construction phase, which means your payment will be less during the construction of your home! This may be to your advantage should you already be making monthly payments on a previous building; for example, a condo dwelling while your new home is being built.
Your professional broker will explain in easy-to-understand terms the loan procedure and be available for advice during the entire project.
To find out more about construction loans, contact our brokers at Mortgage Guys. We are happy to assist in any way we can, beginning with an initial consultation. Let us find the right construction loan for your new home build needs.