Construction mortgages are one of one of my favorite aspects of my job. I believe that building a new custom home or remodeling your current home is a fun experience. You are building your dream. If you are looking for a construction mortgage experience that is smooth, you’ve come to the right place. I have almost 20 years of custom construction loan experience to help you with your project.
Before calculating the loan amount, we need a basic budget. The main components of construction loans that are included in the budget are:
- Soft costs (architectural plans, engineering and permit fees).
- Hard costs (all the actual physical costs of construction).
- Closing costs (origination and lender fees, title fees, and closing fees).
- Inspection fees.
- Reserves (interest reserve and contingency reserve).
- Existing lot pay off
Regular purchase money or refinance mortgages are based on Loan to Value Ratio (LTV), whereas construction mortgages are based on Loan to Value (LTV) and Loan to Cost (LTC) Ratio. Also, we will handle closing costs differently: construction loans usually includes the closing costs. In a typical home purchase, closing costs are added after calculating the Loan to Value. Additionally, I will need specifications, plans and a builder contract.
Each investor/lender calculates the numbers differently as different banks have different guidelines. Construction mortgages are further complicated by this fact. I navigate the waters to guide you through any issues and keep constant contact with construction lenders to ensure all is well.
I am very comfortable and knowledgeable about the guidelines of construction mortgages offered by most institutions. As a result, I can guide you to program that best suits you and your project. With approved these investors, customers experience loan costs that are generally better than if you had applied directly.
Remember, home construction mortgages are a specialized field. As such, you work personally with Joel from the moment you apply. We will work with you from the very beginning until the day you move in, making the process smooth and seamless.