There are plenty of banks willing to lend money for mortgages, refinancing, home equity loans and every other type of loan. But if you'replanning on building a new home, where do you get the best construction loan with the most competitive pricing?More importantly what is a good construction loan?When you call any officer, 99.9% of the time the person on the other end of the phone (assuming you actually human being) will rarely be ableto direct you. If you do find a bank that will do a construction loan, they usually can only offer one product that may or may not becompetitive in today's marketplace.A typical construction loan nowadays is a construction to permanent loan that may or may not allow you to lock-in today's low interest ratesuntil the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher alongwith your monthly payment.This is usually not what you want, so be careful. Some things to watch out for are.Some lenders have a higher interest rate if you lock in upfront. Some lenders try and sell you on a higher rate or adjustable rate duringconstruction with the hope of a float down rate after the home is built. Some lenders have a non competitive long term lock along with afee. Some lenders have such bad service no matter what rate or program they have its not worth doing business with them. Call me and Iwill tell you exactly who that lender is.The most important thing when searching for a good construction loan is to find an experienced construction loan specialist that knows whichbanks are the best.The best banks can offer you a low rate now, upfront, before you start building your new home.
2. Which lenders/banks have the best construction loans?
Home loan banking and the internet has changed the mortgage and construction loan industry forever. Today'sconstruction loan choices include the 30 year fixed, 15 year fixed, 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1ARM, 10/1 ARM and don’t forget the popular interest only loans.The construction loan of the past was a short term 1 year loan that the customer would have to refinance into anew loan once the construction was completed. This two time process cost the customer two sets of closing costs and you would have to re-qualify for the new loan once the home was completed.The most popular construction loan today is the "One Time Close" but not all are created equal. Just like anyproduct there are the best loans, good loans and downright bad loans.Call me on my direct line (800) 753-5126 and I will tell you who the good the bad and the ugly are.