Author Archive
What You Need to Know About How Construction Loans Really Work
The loan process you follow when searching for a construction loan has some similarities to that of obtaining a regular mortgage. You will still be judged on your income, credit, savings and monthly debts just like a regular mortgage.
However, with a construction to permanent loan, there are a few additional factors that lenders consider. […]
Building a Home? You’ll Need to Know Your Insurance Requirements
When you are building a new home, you will need insurance to protect yourself while the home is under construction. If you are hiring a licensed general contractor, he will most likely have some insurance in place to cover the bulk of the requirements. However, if you are going to be an owner builder and […]
Nine Key Credit Factors that Could be Damaging Your Credit Score Right Now
Do you know the main credit factors that affect your FICO credit score? If you don’t know these nine key factors, you could be unintentionally damaging your credit score and chances at better financing terms.
Before discussing the Credit Scoring Factors, please keep one thing in mind: do not make any major changes to your credit […]
Today’s Credit Scoring Basics and the Effects on Construction Financing
At one time, not too long ago, there was no such thing as a numeric credit score. Your credit report either showed that you paid on time or you didn’t, and that was that. You were approved if you had a good rating and were denied if you had a bad rating.
Times have changed. […]
The Construction Loan Timeline and the Number One Mistake Most People Make
The number one mistake, hands down, that most people make when building their home is not allowing enough time to get through the process, especially for those people who are acting as an owner-builder and building without a general contractor.
Building a new home, and obtaining a loan to do so, is not as simple […]
The Construction Appraisal - What You Need to Know Before Your Loan Gets Denied
The appraisal is just as important to your construction loan qualification as your income, assets and credit. The appraisal for a home to be built is even more important than an appraisal for a home that already exists. For a construction loan, the appraiser will do what is called a “plans and specs appraisal,” meaning […]
The Ultimate DIY Project: Owner Builder Construction
If you enjoy working around the home and doing various DIY projects, then maybe you’re ready for the Holy Grail of DIY - building your own home as an owner-builder. By eliminating the costs of a general contractor’s overhead, you will save tens of thousands of dollars on your next home. And it’s not as […]
Who Are the People Involved in Your Construction Loan Process?
Whether you are building your home as an Owner Builder or hiring a General Contractor, there are several people that will be involved with your loan process in addition to the loan officer with whom you choose to work. Knowing the roles of each of these people will make your loan process flow smoothly and […]
Are You Pre-Qualified or Pre-Approved? Knowing the Difference Can Save You a Lot of Time and Money
Nearly everyone who has ever searched for a mortgage has been asked if they would like to obtain a “pre-qualification” or a “pre-approval.” In many cases prospective home buyers are told that they “need” a pre-qualification before they can even make an offer on a home. Typically, this is required by an over-zealous real estate […]
Shopping for an Owner Builder Construction Loan: The Features You Need to Look For Before Building
Most new homes in America are built by builders or developers who build the new home with their own money or lines of credit in order to sell the finished home to the new customer. The new buyer simply obtains a regular “purchase money” loan and buys the house.
This is the simplest form of […]
