A comprehensive Overview of Construction Loan
A comprehensive Overview of Construction Loan A Construction loans allows for a prospective home or school owners to borrow money for the construction of a new building. This includes purchasing a new space, payment of labor and materials. If you already own the land, you may be able to use the property as collateral for your loan. Because construction loans generally are intended to cover the building process, they’re typically issued for a period of 12 to 18 months. That said, some loans automatically convert into a permanent mortgage once construction is complete. Unlike other traditional loans, securing a loan to completed house undergoes processes. For that reason, the application and approval processes for your loan are more complex than for a mortgage. Your lender likely will want to inspect your architectural plans and examine your financial situation before approving you for financing. You will probably also need to provide an estimated construction timeline ...