What You Should Know About The Home Building Loans for House Construction?
Applying for home building loans for house construction is an excellent idea to obtain the home you have wanted so much, however, there is specific information that you should know.
Before committing to a loan, there is important information that you should know about the loans for home construction, this will help you to have the bases to make the right decision and thus, not to damage your financial situation.
The construction of houses is a subject that many fear because then, it is thought that it is a very expensive processor that it is necessary to have all the money in hand in order to start construction.
However, you should know that you have the option of requesting a loan to build your house; It's just a matter of knowing what these financial products consist of.
Because it is increasingly difficult to find a home that meets our expectations, the best option is to build a house, so you will have the security that will have everything you need regarding space, design, and equipment.
Fortunately, this opening has been reflected in the different loan options for house construction that financial institutions offer today in twin cities.
New Home Construction Loans To Build House
It is aimed at those who already have their own land or married under the marital regime and want to build on the land of their spouse to start their project immediately, this because it must be completed in maximum 180 days.
- This financing allows you to use part of the credit to register your land before the Public Registry of Property. The amount you can use depends on your salary and will be taken from the savings you have in the Housing Sub-account.
To apply, your land has to meet specific characteristics and you must submit both the program and the working budget where you indicate the type of project you will do, the name of the person that will technically support you, the expenses you will have and the schedule of jobs.
There are also other aspects that you should keep in mind such as:
- Consult the presentation card for the construction in your land so that you know what your lot should and should not have.
- Request and subsequently fill a value study and technical opinion of the land to meet the requirements of this credit destination.
- If the land on which you are going to build already has a building, it will be included in the Structural Safety Report, but it will not count in the value of the work you do.
- You must hire the services of a builder who is in the Unique Housing Register and sign a construction contract with him.
Requirements for Home Building Loans
Although the requirements to apply for new home construction loans are similar to those that are established to acquire a home, it is essential that you go directly to financial institutions to clarify all your doubts and report more in detail about the credit that you are going to request.- Investigate and find out in detail about the terms, rate, a percentage of financing and insurance that include loans offered by banks for home construction.
- Also, it is important that you ask if there is a charge for opening the credit, some type of commission for advance payments if they are fixed monthly payments, as well as the types of insurance they provide (life, disability or unemployment) and their coverage.
- If you decide for a banking institution, it is best to do it with the bank in which you already have a record, because this way they will have a history of your behavior as a client.
- Choose the financial institution or construction loan lender according to the loan you need and according to what is best for you to start building the home of your dreams; the financing opportunities there are, inform yourself and begin the construction of your house as soon as possible.
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