How to Get Real Estate Construction Financing
Once you've found and purchased a dream piece of land, now comes the task of building the property on it. If you're like most individuals, you'll need assistance in with funding your real estate construction project. The process of funding the project is somewhat tedious but well worth it in the end.
What You'll Need:
- Calculators
- Contractor referral services
- Home design software
- Online mortgage/finance services
- To begin you will need to locate and purchase a site for your construction project.
- Next, research local agencies in your area to find a house plan that best meets your needs. When completing this step take time to look until you are able to find a plan that you believe you will be able to live with for sometime. If you are unable to find a house plan and you can afford it, work with someone to create a custom designed plan.
- Search for builders in your area. You will need to find a builder and get a contract drafted that gives a specific account of the total projected cost of the real estate construction project.
- Speak with a banking representative about your options for construction loans that can transition into a mortgage upon completion of the real estate construction project.
- Once you have settled on a loan type. Go into the bank and complete the application for the loan. When completing this step it's helpful to speak with someone beforehand to find out what additional documents you'll need to turn in with your application such as personal finance records.