When you’re planning your dream home
in New Mexico, one of the first items that need to be checked off your to-do
list is securing a great construction loan that will take you from start to
finish. A quality construction loan takes you step-by-step from the building
process and finishes with a locked in affordable rate.
Blueprint
for Success: Finding the Best Construction Lender in New Mexico
Knowing what to look for in
construction loan will assist you in obtaining the best construction loan from
the best lender. Be on the lookout for these items when selecting a
construction loan:
A lender that gives you construction financing and let you
convert your loan into a permanent one after construction is complete;
A lender that offers an interest only rate during the
construction process. This can save you thousands of dollars in interest;
A lender that provides the flexibility of purchasing your
land along with constructing your home or building. Oftentimes, lenders require
you to own the land outright before offering construction financing;
A lender that delivers a simplified loan process with
one-time only qualifying. This will save you time and needless paperwork;
A lender that uses a reasonable time frame to complete your
project. Construction delays can cost you money and by having a flexible
contract, you can concentrate on your project without worrying about deadlines;
A lender that has an impeccable track record. This goes
without saying. When you are dealing with new construction on a home or
commercial property, you have to be with a lender who upholds and adheres to
high ethical standards lending; and
A lender that lets you float your rate before construction
is completed. This can save you a tremendous amount of money if rates drop.
Builder’s Package
Searching
for lender is not the only requirement for a construction loan. Your lender is
going to need what is referred to as a builder’s package. A builder’s package
comprises your builder’s resume and credit and banking history. There will be a
breakdown of specifics costs and materials list as well as a line item cost
sheet.
When
you enter into a builder’s contract it should contain the following items:
·
There will be a clear outline
describing the responsibilities of each party and their duties.
·
There will be the scheduled start
dates and completion dates for construction of the project.
·
Specific monetary amounts will be
described that will be paid to the builder at each phase of construction. There
should be guidelines regarding payment only under specific conditions are met,
such as when you have received a signed inspection certificate.
·
There will be assurance that your
payment method is compatible with the line item cost breakdown.
·
There will be contingency provisions
for changes in plans or construction specifications.
·
There will be proper identification
of all parties within the contract.
·
If an architect is used during the
construction phrase, their responsibility shall be defined.
·
There will be signatures for both
the borrowers and contractor.
Let Indigo Mortgage Assist You with Your Construction Loan
Needs
Our
locally owned and operated mortgage company specializes in construction loans
for those in New Mexico and the surrounding areas. Our expert team of lending
professionals can assist you today in your construction loan needs. Contact us
here or through our Albuquereque home office today!
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