Real Estate Construction #Loans
Many people get confused when looking for #home loans when they set out to build their dream home.
In many cases it may be wise to get a short term bridge #loan to get construction started, and then turn that loan into a permeant loan once construction is complete. You will find most lenders can do both, but those who specialize in bridge loans or building loans are typically less. It will be more paperwork for the consumer, but it is not unusual for consumers to save thousands if they take the time and energy to manage it themselves.
If a loan exceeds $417,000 in most states it is considered a Jumbo Loan, and it is not unusual for banks or lenders who do conventional or FHA loans to have different rates on their #jumbo loans. In-Fact lenders who specialize in Jumbo Construction Loans typically have different processes and rates. (Typically Less)
Top 10 Real Estate Construction Loans tips:
- Get rates from 5-10 lenders
- Don’t always take the local banks advice, shop around
- Be willing to do the paper work, it will turn in to SWEAT EQUITY in the long run
- Ask your builder who they have used
- Check with your insurance agent, they may do banking now too since laws have changed
- Buy your land cash, and leverage it as your down payment for the loan.
- Don’t over extend yourself
- Compare your rates every year