Construction Loans
With hundreds of decisions to be made and a completion deadline, there are constant concerns when building a house. I can not only make getting finance one less thing to worry about.
Construction Loans generally come in two main forms;
1) Turnkey Properties
With these properties a deposit is usually paid now, with the rest being paid on completion. This is a cost effective way of purchasing a new house as you usually don’t have to draw down and start paying a mortgage until completion of the property. Even if no finance is required until the end, it is important that you get a pre-approval to the bank prior to paying your deposit so that you don’t lose it if you can’t settle the property.
2) Progress Payments
This is when payments are made along the way to pay contractors. Payment times and amounts are usually outlined in the builder’s contract and are invoice when the work is completed. If there is a hold up in the finances and these invoices are paid late, this can not only hold up construction, but there can be late penalty fees applied.
No matter which type you do, any hold up in payments can increase the time until you will get into your new home. With the banks having different requirements on what they need and when, simple things such as a valuation done too late can slow down the whole process. By having a strong knowledge of the building process I can make sure you are aware of when things are required and help to make the process as smooth as possible.
If you’re looking at building your own place give me a call to have a chat about how to finance the build.