You know you want a new home, but if you’ve shopped the Lincoln Market lately, you’ve probably noticed that there aren’t as many houses for sale as there typically would be. With few options available, it is easy to get frustrated as you struggle to find a house that will feel like home to you. Before you throw in the towel, consider building. When you have the right builder paired with the right lender, construction can go quickly and smoothly. Here are some things to look for in a lender:
Local Decision Making.
When you’re building, one of the most important considerations is keeping the project on time. Lenders who have decision-makers in the city/area where you’re looking to build will likely provide more responsive service and flexibility. Ask the lenders you’re considering if they can approve you for a construction loan within 24-48 hours.
Staying on budget is one of the most important parts of the building process. To avoid surprises at the end of your project, it’s important that you have a lender and builder who communicate well with you and each other. Some lenders will monitor the draws from the builder and conduct on-site inspections. This helps to make sure the builder’s costs are consistent with the original bids. Ask your potential lenders if they’ll provide these services free of charge.
Fast Monthly Draws.
Getting paid on time keeps builders happy, and happy builders keep your home moving toward completion. Look for a lender who can pay your builder within 24 hours and keep your project moving. As many as 30 different subcontractors may be involved with the construction of your new home (electricians, roofers, framers, plumbers, etc.). Subcontractors often have several different projects going at the same time. If they haven’t been paid for a while on your project, they might make your project less of a priority, which will cause your home to take longer to complete, costing you time and money.
If you’re ready to explore building a home, I recommend getting pre-approved before you start looking at model homes and locations. You don’t want to get your heart set on a home that you can’t afford. Once you know what you qualify for, you can begin shopping locations and builders in your price range.
To learn more about the different loan options available, click here.