Are you interested in mortgage construction? There are two types of mortgages that you can choose from: Construction of a mortgage settlement and progress utilizing a construction loan.
Construction of mortgage solutions.
You must apply for this loan when you buy your home from a builder who qualifies with a fixed price after the building is finished.
There are two types of this loan:
All-in Construction Loans: This is a simple loan that offers you one level for the construction and financing process that comes in the end. When you take this loan, you need to pay it in one year. You must note that you have to pay a penalty if you discuss the time limit.
Purchases plus improvements: This is the one you get when you buy a house that needs to be cared for properly. The contractor needs to continue to make the improvement you ask for it and you just have to accept the building as soon as you are satisfied with repairs.
Both of these construction loans have a number of features:
Builder must have a place where the house will be built
Builder can ask for money only when the house is 100% complete.
Lenders may require rating before, during, and after construction. This is to ensure that the house is worth the amount pawned
You need to make a down payment – which can be made in a series of installments
Because loans are almost similar to the property mortgage resale, mortgage agents do not require administrative fees to regulate this type of financing.
Before you are loaned, you need to present a number of documents to the lender. These documents include:
A copy of the building contract that has been signed by you and the contractor
House Plans and Work Pictures
Site plans that show legal descriptions and property dimensions
Assessment showing the final value of the house after construction
Progress Attracting Construction Loans
It’s ideal when you plan your home construction using your own general contractor. You submit funds at three different loans: when the building is 35-40%, 65-70% and 100% complete. You must note that the loan interest rate is higher than traditional mortgages.
When applying for a loan, you need to present a number of documents that include:
A copy of the land contract
Resume that confirms that you have good knowledge of the construction process
A copy of all sub-contracts that confirm construction costs.