How to obtain financing for the construction

Are you interested in a construction mortgage?
There are two types of construction mortgage that can go all the way: the construction of the mortgage and the progress of print jobs.

Construction Completion mortgage

You must apply for this loan with the purchase of a qualified home at a price fixed at the completion of the building constructor.

There are two types of loans:

All-in-one construction loan: is a simple loan that offers a single rate for both the construction process and the funding that comes last. When you take this loan you have to pay in a year. You should note that you must pay a penalty if the time limit is exceeded.

Buy more improvements: is what you get when you buy a house that needs to be addressed. The contractor shall continue to make improvements to ask him / her to do and you must accept the building once you are happy with the improvements.

These two construction loans have a number of characteristics:

The manufacturer shall possess the land where the house will be built
The manufacturer may request the money when the house is 100% complete.
The lender may require an assessment before, during and after construction. This is to ensure that the house is worth the mortgaged amount
You must make a payment, the decline can be done in a series of payments
As the loan is almost similar to a mortgage on a property for resale, the mortgage broker does not require administrative costs to organize this type of financing.
Before receiving the loan, you must submit a series of documents to the lender. The documents include:

Copy of construction contract signed by you and the contractor
Plan of the house and work plans
Site map showing the legal description and size of the property
An evaluation which indicates the final value of the house after construction
I progress draw construction loan

This is ideal when you are building your own home using your own general contractor. To apply the funds in three different stages of the loan: when the building is 35-40%, 65-70% and 100% complete. Note that this loan rates of interest are higher than a traditional mortgage.

When applying for the loan you need to present a series of documents including:

Copy of the land
A resume that confirms that you have a good knowledge of the construction process
Copies of all subcontracts confirm the construction costs.