Contractor City Blog

Owning the home of your dreams always comes at a price. And whether you?re just starting out or you?re building your retirement cottage by the lake, chances are someone other than you will have to help finance the cost of building your dream.

Now, if you?ve been through the home building process before, you know that construction financing isn?t the same as taking out a conventional mortgage on an existing home. But if you haven?t had the pleasure of having a castle built just for you, there are a few things you should know about new home construction loan financing. For instance:

? Getting approved for construction loan financing can be tricky. Two loans are often required ? one for the construction period and one for permanent financing. Which means you?ll have to shop for both loans separately and will likely incur closing costs for both. However, if you qualify for a loan with a company that offers Construction-to-Permanent loans, both loans will be rolled into one ? and take the extra steps out of getting your dream home financed.

? Bridge Loans can help secure your new owner-occupied primary residence home loan before you sell your Continue reading ‘Construction Financing 101’ »

Nothing seems impossible today. We all know about Home Loans that help us purchase our dream houses. But what happens when you want to build your own home, do you go about applying for a home loan as usual? No. This is exactly where Construction Loans come in. Construction Loans are taken to fund the construction of your home or that of a commercial structure (Commercial Construction Loans). Let?s get a little more acquainted with this category of loans.

Construction Loans are short-term loans and are therefore more expensive than regular home loans. However, they are ideal for construction purposes because of the features they offer. The process may seem a little complicated but there?s sufficient help to walk you through it.

Construction Loans can be applied for either before or during construction of your property. Whenever in need of additional funds, you will be required to assess the situation and accordingly apply for it. Your architect is obviously the best person who can tell you the exact amount required for construction to kick-off. Here, you must involve every tiny amount ? the mason, electrician, plumber, landscaper, excavator, painter, etc. and costs like laying of the foundation, Continue reading ‘Construction Loan: Let Nothing Get In Your way while Building the House of Your Dreams!’ »