What Can I Do To Prepare For Applying For a Construction Loan?
Being prepared to apply for a mortgage can be very helpful in making the process smoother. Mortgage companies are required to “fully...
I have my own business, is that a problem?
No. It has no impact on the loan itself. It will impact how much income documentation may be needed. Because lenders are required to...
If I pay cash for the property, can I pull equity funds back out?
For timing purposes, occasionally people will purchase a property with cash that they will be tearing down and rebuilding or remodeling....
Is the interest rate fixed during construction?
Yes. The rate is locked in prior to closing and fixed during the construction period. A typical construction period is 12-18 months....
Do I need plans and a budget for a construction loan?
Do I need plans and a budget for a construction loan? Yes. The appraisal on a construction loan is completed based on the plans, budget,...
Can I refinance right after construction?
Can I refinance right after construction? Yes! Since the construction loans are ARM products, many clients will refinance shortly after...
Can I purchase and close on my new property at the same time as the construction loan?
Can I purchase and close on my new property at the same time as the construction loan? The answer is yes. However, depending on how much...
Can I finance raw land or a vacant lot?
Can I finance raw land or a vacant lot? The answert is yes. Raw land can be financed with a lot loan. Lot loans are slightly different...
Why do you need so much stuff?
We in the mortgage industry ask that same question every day. The quick answer is because we do. The longer answer is that out of the...
What is a Construction Loan
A construction loan is a mortgage loan that is used to help finance a construction project of various types. The loan and appraisal is...
