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CONSTRUCTION LOAN
Providing the best LDMB CONSULTING & ADVISORY to customers.
CONSTRUCTION LOAN
WHAT IS CONSTRUCTION LOAN
A construction loan is a short-term loan used to finance the building or renovation of a home or other real estate project. These loans are typically used for a period of one year, after which the borrower must refinance into a mortgage or repay the loan.
CONSTRUCTION LOAN
TYPES OF CONSTRUCTION LOANS
1. Construction-to-Permanent Loan:
This combines a construction loan with a mortgage. After the construction phase, the loan converts into a permanent mortgage without the need for a second closing.
2. Stand-Alone Construction Loan:
This is a short-term loan that covers only the construction period. After completion, the borrower must secure a separate mortgage to pay off the construction loan.
3. Renovation Construction Loan: These are designed for renovating or rehabilitating existing properties, covering the costs of repairs and improvements.
CONSTRUCTION LOAN
CONSTRUCTION LOAN PROCESS
1. Pre-Approval:
Initial assessment of your financial situation and creditworthiness.
2. Submit Plans and Budget:
Provide detailed construction plans, budget estimates, and builder information.
3. Loan Approval:
The lender evaluates the project and approves the loan.
4. Draw Schedule:
Funds are released in stages as the construction progresses, based on a pre-agreed draw schedule.
5. Inspections:
Periodic inspections ensure that the construction is proceeding as planned.
6. Conversion or Repayment:
Once the construction is complete, the loan either converts into a permanent mortgage or is repaid in full.
CONSTRUCTION LOAN
TIPS FOR SECURING A CONSTRUCTION LOAN
1. Choose a Reputable Builder:
Lenders are more comfortable with established and reputable builders.
2. Prepare Detailed Documentation: Comprehensive and detailed plans and budgets help in the approval process.
3. Maintain Good Credit:
A strong credit score increases your chances of approval and better terms.
4. Save for a Down Payment:
Be prepared to make a substantial down payment.
5. Understand the Terms:
Fully understand the loan terms, including the draw schedule, interest rates, and repayment conditions.
CONSTRUCTION LOAN
PROS AND CONS
CONSTRUCTION LOAN
PROS
CONSTRUCTION LOAN
CONS
- Customizable financing tailored to your project.
- Interest-only payments during construction.
- Can be converted into a permanent mortgage.
- Higher interest rates compared to traditional mortgages.
- Stricter qualification requirements.
- More complex and involved application process.
CONSTRUCTION LOAN
CONCLUSION
Construction loans are a vital tool for financing new builds and major renovations, offering flexibility and tailored funding options. However, they come with stringent requirements and a detailed application process, so preparation and a thorough understanding of the terms are crucial for success.
If you need further assistance or specific details about construction loans for a particular project, feel free to ask!
LOAN CONSULTING:
While we cannot guarantee approval, we will work tirelessly on your behalf until all options are exhausted!!
LOAN CONSULTING:
We do charge a loan consulting fee, similar to a broker or origination fee, but only when the loan is approved and will close. This fee is added to the closing costs and will be paid at closing.
KEY POINTS
1.Conditional Fee: The fee is only charged upon loan approval and closing.
2.Varied Fee Structure: The fee may be a percentage of the loan amount or a flat fee, depending on the specifics of your file.
3.Fee Cap: We guarantee that our consulting fee will not exceed 1.5% of the loan amount.
4.Negotiation on Your Behalf: While we cannot determine the exact fee until we secure financing, rest assured that we will negotiate on your behalf to ensure the best possible terms.
5. Transparency: We commit to full transparency about any additional charges from lenders or brokers once we begin working on your file.
GET STARTED WITH OUR CONSULTATION & ADVISORY SERVICES
To get started with our consultation, there’s an initial administration fee of just $9.99, which covers a full week of access to our services!
Please note that there are other consulting and advisory fees associated with different products and services. Some fees may be flat rates, percentages, or included within the administrative fee. This initial $9.99 fee allows us to work with you and dedicate our time to your needs.
OUR OFFER
Initial Administration Fee: $9.99 for the first week.
Continued Access:
If you wish to continue working with us after the first week, it’s only $9.99 per week. You can cancel at any time.
Non-Refundable Fee:
Unfortunately, the $9.99 fee is non-refundable. However, you will still have full access to consult with us until the week is over!!
BENEFITS
Comprehensive Consultation: During your access period, you can consult with us on any topic our site
provides. Risk-Free Start: If you're unsatisfied, you only lose $9.99.
Sign up now to begin your consultation and take the first step toward securing your financing solutions!
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