New Construction Loans

When you are building a completely new home, a construction loan is often necessary because of the extended time frame and special needs of the building process. 

Excellent financing programs are available to meet the needs of new home construction. Often new construction companies and builders partner with a lender. They can guarantee you a fairly competitive, long-term deal on mortgage rates. Most conventional lenders will require you to pay a quarter or half point in order to lock in the interest rate over a long period of time. The only way to figure out if they are offering the best deal is to shop around to other lenders.

Many lenders require that you pay closing costs at closing, but it’s the “upfront” that concerns the most. Many lenders ask you to pay some sort of upfront fees. But you shouldn’t pay the lender anything other than a small application fee until the closing.

The only way to figure out if the new construction loans company is offering the best deal is to shop around to other lenders.

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