Construction Mortgage Loans
You want to create your dream home, but you don’t know where to start. Not everyone is interested in purchasing an existing home. Some folks would rather have a completely new house built instead. If you’re wondering if you can get a mortgage to build a house, you can!
A building or construction mortgage allows you to take out the whole loan amount at predefined points throughout the home’s development.
Construction loans are issued on the basis of a percentage of the project’s completion date. As you reach varying forms of completion, you will be granted the entire money that you need to borrow in order to finish your work in stages – otherwise known as “draws.”
A first advance is offered as equity take-out if you already own the land you wish to build on. A first advance is provided to assist you with the acquisition of a vacant lot if you have not yet purchased the land.
Important Things to keep in mind
- Before each draw is advanced, an inspector will visit the property to verify that the builder is adhering to the NHW (New Home Warranty) standards and that each stage is done correctly before funds are released.
- The borrower is responsible for the inspection costs. Appraisal and progress inspection costs are deducted by certain banks from each draw.
- You will not be allowed to adjust your mortgage amount after it has been authorized and signed to suit any renovations or changes made to the house.
A construction mortgage from Mortgage Solutions will help you finance the cost of buying the right building lot as well as the price of building your dream house. A Mortgage Solution consultant can assist you whether you currently own your property or are still looking for that perfect spot.