Indiana Builders and New Construction Loans

As you look for a new construction loan you may get advice from your local Indiana builders, or Michigan home builders, as they will be familiar with which local banks and mortgage brokers that is willing to do a new construction loan. When it comes to banks they have set guidelines they have to follow for someone to get a loan with them or you will be turned down for your new construction loan. When you work with a mortgage broker they will go to two, three or even more banks to get one of them to accept your new construction loan. Once you’re approved, it’s off to see the custom builders.

A new construction loan is considered more risky for a lender because they will be paying as the new home is being built. This is why it’s best to ask Indiana builders, or Michigan home builders, to recommend places to get the process started. Consider too that there are usually a few stipulations that go along with a building loan. This new construction loan is usually good for twelve months and future funds withdrawn only after an inspector or appraisal has reviewed the new home to verify the amount of work that’s being billed has been completed.

Once the new home building process is complete you will get a permanent loan, like a thirty-year conventional loan. This loan is the same type you get when buying an existing home. Again, finding good Indiana builders or Michigan home builders, like Certified Builders, can help you in this process by suggesting banks that offer ‘one-time closing.’ A one-time closing covers both loans, or the builder may apply for the new construction loan for a reduced cost. Just remember, there are other steps to the process. If you’d like to learn more be sure to contact us at Certified Builders.