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1. Which construction loan is available and which one should you apply for?
Home loan banking and the internet has changed the mortgage and construction loan industry forever.
Today's construction loan choices include the 30 year fixed, 15 year fixed, 1 year ARM, 3/1 ARM,
5/1 ARM, 7/1 ARM, 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 a new 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 any product there are the best loans, good loans and downright bad loans.
With today's technology you now have the ability to obtain a construction loan from the best banks
in the country and sign your loan documents at your local title company or escrow office. This
benefit allows you to have the most competitive construction loan available.
The construction loan that you should apply for is simple; ask for the lowest rate, one time close
for a specific period of time that you think you'll be living there.
2. Which lenders/banks have the best construction loan and what do you need to apply?
There are plenty of banks willing to lend money for mortgages, refinancing, home equity loans and
every other type of loan. But if you're planning 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?
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