Are you planning to build a new home? Although purchasing a house is a simpler procedure than building a new one, numerous homeowners wish to start the new chapter of their lives from scratch.
However, in order to finance your plan, you’d need a construction loan that would cover the costs of the project. Since most homeowners face difficulties in the process of loan approval, they request the assistance of a construction loan broker.
In fact, these brokers are armed with the necessary experience to negotiate favorable interest rates, hire qualified builders and provide building permits, thus making clients more eligible.
The following tips will help you hire a construction loan broker company in your local area.
Choose the right type of construction loan
Prior to hiring a broker company, you need to consider the types of construction credits that are available to homeowners. For instance, you could apply for a short-term loan that you would pay off by obtaining another credit after the completion of the construction project. On the other hand, you’re also provided with the alternative of applying for a single-close credit that converts into a mortgage loan once the project is completed.
In terms of the application process, the latter one is more convenient, as you go through the procedure solely once while saving money on closing fees. However, the former one tends to have more favorable interest rates, which is rather beneficial for your budget. Also, a short-term credit provides you with the option of selecting a more suitable mortgage lender.
Look for potential candidates
The initial step of your search for potential broker companies should be getting referrals from your closest friends, family members, or colleagues. There must be someone in your circle of acquaintances who has been through the process of hiring such a broker, thus being able to provide you with an honest opinion on its services.
Additionally, you could conduct an online research, as most of the loan broker companies have official websites. It would help you to learn more about their expertise as well as their record of experience. Also, make sure you search for online reviews of the candidates in order to check their reputation. Click here to learn more about the importance of online reputation.
Schedule interviews with the most prospective candidates
After narrowing down your choice to a minimum of three prospective candidates, the following step would be scheduling interviews. It’s essential to schedule all interviews within the same week so as to make a better comparison of the candidates.
Furthermore, remember that these interviews are your chance of asking the most relevant questions regarding their years of experience as well as checking their expertise. Make sure you ask them whether they’ll assist you in hiring a qualified contractor for the project, as licensed builders are a key element affecting the loan approval decision.
In addition, ask the candidates to explain the whole procedure of getting a construction credit in order to get familiar with every step of the journey ahead of you. They should also be willing to deliver a list of references from former clients, as an additional proof of their reputation.
Inquire about paperwork and fees
Since the application process is one of the crucial aspects of getting a construction loan, inquire about the paperwork that you need to provide to the broker company. Make sure you discuss some specifics, such as your credit score and the approximate deposit that you’d have to make. Visit the following link: https://www.investopedia.com/terms/c/credit_score.asp, to learn more about the factors that determine credit score.
Naturally, you need to be informed about the commission that the broker is going to get for its services. Bear in mind that a reputable professional would be open to discuss its fees and provide you with more than one credit option.
Assess their behavior
Apart from inspecting the candidates’ experience and expertise, you’re also supposed to assess their behavior. Since you’ll be sharing your credit history, it’s paramount for the broker to be a trustworthy professional and genuinely interested in your case.
In fact, the ideal candidate is supposed to ask you a myriad of questions related to your credit history, such as your income, your current financial situation, and account balance. Based on this information, he/she would provide you with the possible options.
Lastly, a good construction loan broker should be an affable person, open to discussion, and highly available. Remember to never hire a professional who you can’t trust, as the job of such an expert is to support you in one of the most important periods of your life.
Hiring a broker company is your best chance of getting a construction credit.
Make sure you choose the best one!