custom home builders spring

custom home builders spring
Thank you for your wise decision to build and / or a contract to build your dream home! If you have a solid design and construction practices wisdom to find the decision for one of the most profitable and enjoyable experience in your life!

One of the most important aspects of home construction is the construction loan and the structure! In the last 3-5 years, owner builder construction loans have come a long way and despite the subprime mortgage crisis and credit problems, there is still much money to lend to owner builders! From a vantage point lender, construction loans, some of the lowest risk, best-performing loans for the lender because the people who build a house in general, love these houses and are more likely to live at home longer than non - owner-built house! So the first thing you want to understand is that the banks really want your business! (Provided you have good credit and assets!)

Qualifying for a construction loan is really not much different than for a standard real estate loans, but there are some additional considerations that you need to think about. Things like the total cost, the type of home and whether you have supervisory Builder or not. I suggest that at least you pay for a builder of record, which supports and / or manages the construction, trade and project for you. They also want to identify and collect all of your income, checking and other data so that you are well prepared for the application process.

There are (2) primary types of construction loans:

# 1 - Interim construction loan - this is a short-term loans must be refinanced, or paid on the completion of the construction. The downside to this particular loan is that the costs are higher, close, because you have two separate accounts and they are higher risk, because you can not lock the interest rate on your loan at the end. The primary benefit for an interim construction loan is that it allows you to pull (or accessing the equity and get cash) after the completion of the dwelling. In most of these states will have a home equity line of credit. Personally, I only advise, access to equity, if you have a significant appreciation since the beginning of the construction and / or you have the investment of revenues in good low-risk cash flow producing property!

# 2 - One-Time-Close construction loan - this loan is fast the industry standard because of its many advantages, which the loan. For starters, this loan has no interest rate risk, as you can the interest of the day on which you are, and that rate can be booked as much as 1 year in advance! (Big advantage!) Another great advantage compared to the interim construction loan agreement is that the one-time close loan has only 1 close, so you only have to pay closing costs once! When structured properly, you can roll all your soft costs (soil tests, surveys, engineering & plans) in the loan as opposed to pay in advance out of the bag!

Now that we know what the (2) are the primary options for financing our Custom Dream Home, you can take a look at some tips and strategies, mindful of how you go about planning your project. Now there are several owner builder construction loan programs that literally give you the money and leave you / your own custom Dream Home builder without control! (some states have requirements Builder) I personally recommend against builder building without supervision, unless you are a builder himself, because the loans that they normally very expensive and do not offer the possibility of a time of close, so that you end spending several thousand U.S. dollars in additional interest and costs, the lender could have been saved! I also recommend against this because it is an extreme level of financial risk and responsibility to build a house if you have never built a house before!

Here are a few other considerations to save money consciousness in relation to construction loans:

1. Structure your loan so that you no payments during construction!
2. Add the "float-down option in the lock the interest rate, so that prices fall, if during the construction phase you can enter the new lower rate!
3. Confirm your building schedule with your builder to ensure that you have enough moves. (pulls = check payments)
4. Be sure that a survey completed when the home construction has been completed. (the mortgage will need it!)
5. Always extra time to make the interest rate lock period, the construction always takes longer than planned!

A (5) above tips could you thousands and thousands of dollars and a bunch of headaches! I have seen people lose a lot of money and time, because no one these basic common owner builder construction loan tips! But on the other side are well equipped with this information, but only scratches the surface of the full scope for the construction of your Custom Dream Home! In my practice I see people who take the time and invest in their training and I also see those who throw caution to the wind and ignorantly jump in head first without instructions! Months later, the results are always to show that the cream rises to the top and those who are not yet fully equipped himself, hired a professional team of experts and followed her advice appear to have had lackluster results at best and a major financial disaster on Worst!

I wish you the best for building your Custom Dream Home!

Tyron C. McDaniel, author of the exclusive "how to Custom Dream Home for Less Money! "Owner Builder has been in real estate since 1999. As a construction loan Expert, Real Estate Agents & Real Estate Developer Tyron has helped a number of clients save thousands of dollars and realize HUGE equity gains when planning and constructing their Dream Home. Tyron's expertise in Custom Dream Home Financing and design consultancy is in high demand with clients from around the country. For a very limited time, Tyron with his forthcoming "Owner Builder Custom Dream Home Planning Guide" (A $ 39.95 value) for free (only for a limited time), so hurry on http: / / MyDreamHomeforLess.com /