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Most
Smart Start Building Systems Owner–Builders seek
construction–to–permanent financing in order to fund
their building project. The independent regional dealer
may provide some explanation of the wide variety of
choices available. This type of financing provides
incremental advances during the course of construction,
which correspond to the degree of completion. These
advances, called “Draws” are defined in the “Draw
Schedule” that is part of the loan documentation. When
construction is completed, a final inspection is
typically conducted, the loan is modified from the
construction phase to the permanent phase, and payments
begin per the chosen amortization schedule.
Every
lender will have different programs available, but most
of the basic considerations are the same. The term of
the loan, amount of the loan, interest rate, and
processing fees, are some of the primary considerations.
An appraisal of the property and valuation of the
proposed new construction, plus review of the borrower’s
credit worthiness, typically precede preparation of the
financing documents.
While
neither Smart Start Building Systems, nor it’s
independent dealers, endorse any particular lender,
links are provided for interested parties to learn more,
and perhaps seek “pre-qualification” for a given loan
amount, subject to a future property appraisal and
maintaining current credit status. Establishing a
realistic overall construction cost budget is the first
step toward financing considerations.
Click
the image to visit the lenders site:
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