When it comes time to shopping around for a loan for builders, don’t just work with the first lending company you come across or one that is conveniently located in town near your business. There are a number of things you need to carefully consider before just choosing any lender to handle loan for builders needs.
Consider these important details when you are still looking around for the best local construction finance for builders from ConstructionSpecLaons.com.
1. Be sure that when it comes to construction finance for builders, it is important that you only have one relationship with the lender. One originator means you get more personalized service and your needs can be addressed in a more timely manner as well. Your time and your business are important to you, and working with one originator will help them to get that point right at the start.
2. Inquire about retainage hold-backs, draw schedules, and builder approvals. Get all your answers in writing to avoid any types of confusion on the day of closing.
3. Take the time at the beginning of the process to learn all about fees and costs of the loan. When the lender is transparent up front, you won’t have any surprises at closing.
4. Be sure that the lending company you are considering does all the work-in house. One of the most frustrating parts of the construction finance for builders process with the wrong lender is when third-party underwriters drag down the whole approval process. Instead of a month, the process drags on for an eternity, and this will not only negatively impact your business, it can be very frustrating.
5. Ask about the turnaround time as per the construction finance for builders. The average is approximately 30 days after all of the final contracts have been received and are in order.
6. As it pertains to construction finance for builders, you want a lender who understands the value of your time. Don’t work with a lending company that is going to tie up your time with multiple closings even if the properties are all on the same lot. Make sure the lender is willing to do simultaneous closings so you can get back to running your business and not sitting in closings each week.
As you can see, construction finance for builders comes in all shapes and sizes and once you work through this list you will be in the best position to find a lender who best matches your needs to grow your business.