There Are Many Ways To Get Construction Financing For Custom Homes Or Buildings, But Some Lenders and Investors Have More Favorable Terms Than Others. Let GIS Help You Find The Loan That’s Best Suited To Your Project.

Let GIS Assist You In Acquiring The Right Funding For Your Construction Project

Our team has a broad range of experience in assisting our clients as they work through the process of getting construction financing. As you approach your project it is good to know what to expect.

While lenders and investors may vary in terms of the paperwork and types of work you have to do to apply for funding, here are some of the steps you can anticipate as you apply for your funding.

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GIS Will Help You Identify The Types Of Loans And Lenders That Offer The Best Terms For Financing Your Custom Home Or Building Project

Over the years our firm has worked with hundreds of lenders. Lenders often have similar requirements, but lenders also tend to specialize in different types of loans, and our team is familiar with the variety of loan types and the options that might be most beneficial for you. Therefore, we recommend that we visit with you prior to your formal application for funding. We can help you identify the right kind of loan for your situation, and also provide you with the necessary paperwork that the lender is likely going to require in order to receive approval.

Some financial institutions do not offer loans for new construction, remodels or renovation projects. We keep a list of local banks, credit unions, or other lenders and investors willing to provide funding for new construction, remodels, renovations and even on difficult critical area sites.

Evaluate Your Financial Standing And If Necessary, Fix Any Issues That May Be Negatively Affecting Your Credit

Your lender will look at your credit history and your credit score. What they find can impact both whether or not you are approved for a loan and can also affect your loan terms as well as your interest rate. It is best to check your own credit prior to your application and make sure that any issues that are negatively affecting your credit are resolved.

How To Prepare For The Construction Financing Process

In addition to looking at your credit score, your lender will ask you for documentation regarding your current financial standing. This may include documentation of your budget and ongoing expenses, as well as money or investments that can satisfy their need to evaluate your credit worthiness and terms.

Lenders may follow similar guidelines, but they are also in competition with one another. Once you have gathered the necessary documents to illustrate your financial health, lenders will be able to begin communicating the amounts you can borrow, and the rates and conditions of the financing. Be aware that custom building projects usually involve two types of loans: one for funding construction and another to fund that loan into a standard mortgage. There are several options to consider, including a construction-to-permanent loan.

In order to get a construction loan, your lender will want to see that you have your property ready for construction. We have experience and can help you with site evaluation and acquisition. Before purchasing land we can help you make informed decisions, ad we encourage you to invite us to help you through this process. Our team of experts can help you secure lending, find the right real estate agent/s, help you identify and prepare your land, select an architect, and have a plan ready for lenders to review.

Of course lenders require that you have formal plans and paperwork before they are willing to fund a new building project. We will work with you to put together a blueprint and outline a budget and schedule. We will help you put together documents that provide all the relevant details. The more specific your plan, the better your chances of getting properly funded. Our involvement can actually help you get better terms. The lender will look closely at your plans and financial history, but they will also examine our work history, our insurance, and check our references. When they see how thorough GIS is in our preparations and planning, they will be able to provide you with the funding at terms that are advantageous for you.

Once we have completed all of these initial preparatory steps, we will help you apply for your construction loan. Your lending institution will conduct a formal review of your plans, your credit history, and evaluate the proposed construction project to determine if it is something that they are willing to fund. Depending on the loan offer you receive, you can choose to accept the loan or take your proposed project to another lender to see if you can get better terms.

Construction loans are specifically to fund the construction of a building. Once the building is complete, your construction loan will likely be due. Usually our clients will transition from a construction loan to a standard mortgage. Many lenders that provide construction loans also have the option to roll your construction loan into a mortgage loan – whether the mortgage is FHA, VA, or a conventional mortgage. The advantage of using this kind of loan is that you only have to pay closing costs once.

Use The Loan To Fund The Build

Once your construction loan is funded, you will be able to make draws from the loan in order to pay for the building project. Your lender may send officials out to inspect the project, or they may require reports regarding the progress of the project. Our detailed and itemized financial reports are what you need to keep your lender in the know regarding your project. Most construction loans only require that you pay interest on the amount withdrawn on the account each month rather than requiring you to pay interest on the entire loan amount. The careful management of cashflow can also make your project run smoother and save you money!

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