One thing is certain when it comes to new home construction, not all builders are alike. That being said, neither are new home construction loan agencies, but most builders never even think twice about it. It doesn’t make good business sense to trust a company to handle the most important part of your construction business, the finances, when you are trying to stay ahead of the competition in a very crowded space.
Before you simply select just any new home construction lending professional, make sure you consider all of the following first:
1. The new home construction loans lender you decide to work with should not have any retainage hold-backs.
2. One of the things to consider before choosing any new home construction loans lender is how flexible they are with draws for clients.
3. Be sure that you inquire with the lender about how easy it is for builders to get approved for a variety of different loans.
4. Make sure that the new home construction loans lender you are working with is the only loan originator. One relationship means that as you do more business with this lender, they will be in a better position to predict your needs and streamline the entire loan process.
5. Be sure that the lending institution you choose does all their financing in-house. Regardless if you are working with permanent or interim loans, the ability to do everything in-house is key to the speed in which you can get your money when you need it.
6. Before you make the decision on which lender to be working with, you must ask all the important questions up front and get those answers before you start the process. Unless all your concerns are addressed, don’t make the decision to work with this particular lending company.
7. The new home construction loans lender that you choose must be able to offer you the ability to close on similar lots in a row rather than having them spaced out over days or weeks.
8. The ideal turnaround time to close on these loans should be around 30 days after all the documents are in order.
9. Be certain the new home construction loans lender has their own underwriter in-house who will be in position to speed up the closing process.
Hopefully you were able to see how choosing the right new home construction loans lender can make all the difference in your business thriving or getting stuck and moving in the wrong direction. For more info please visit: ConstructionSpecLoans.com