HOW TO GET A CONSTRUCTION LOAN

Monday, October 11, 2010

How to get a construction loan

You want to build and you don’t know where to take money? One possibility is to borrow it from lender. A construction loan can help you solve the problem. However, what do you have to know in advance?

- How long is the money borrowed for? Consider well how you’ll be able to pay the loan off. You can get it for up to several tens of years, possibly get a short-term loan, which you’ll finance by (transform it to) a classical mortgage loan.

- The solvency and the credibility of a company. Think over well where you’ll draw the money from and who you’ll pay it off to. Still it’s true that the best financier is a person, who you have your own good experience with or who is recommended to you by your friends.

- Find out the tariffs. Inquire about fees, which you’ll have to pay in the connection with the loan, in advance, so that you won’t be surprised after. Find out also whether you’ll have to pay the loan off immediately or payments can be postponed until the building of the house is finished.

- Prepare all documents. The person, who will lend you money, will want to know, what you want it for. Have all important documents at the tips of your fingers.

- Verify all possibilities, let specialist to advise you. Don’t let you be taken in by beautiful promises. And don’t forget about insurance.