Many buyers wish design the house of your dreams even more so at this time when the inventory is limited to 4 months of sales and it is difficult to identify the property that fits your expectations.

 

This inventory limitation created by the market can be solved using the construction loan, the which provides the buyer with a house design tool Of your dreams.

 

The construction loan allows the buyer to combine the financing of the lot, the construction and mortgage in a single loan. A loan advantage for construction is that you can lock in the interest rate by start of the process before start construction.

 

The loan process for construction is similar to that make for a purchase traditional; starts with pre approval. Then he buyer must work with a contractor or builder to whom the lender or bank must approve and evaluate the plan construction, costs and the loan structure under your parameters.

 

The contingencies of the construction is generally calculate between 5-7% of budget to be added to the loan, after this comes the loan closing and starts construction on the lot chosen one. Another feature of this type of loan is that during the construction stage no payments will have to be made anymore what interests will be added to the amount of loan.