4 Essential Things That You Should Know Before Applying To A Mortgage Lender El Paso

Every one of us dreams of becoming a homeowner someday. However, not everyone has enough money to build your dream home from scratch. Yes, there are houses listed for sale, some even brand new, fully furnished and all. However, nothing beats the satisfaction you can get knowing you were there right from the start of construction.

Thanks to Mortgage Lender El Paso, one can now finance the building of your home. If you're keen on building your home, there are things you need to consider to help simplify the process.

Your Allotted Budget

Knowing how much numbers you need and how much loan you can spend is essential in planning your budget. Find a mortgage professional that can help you cut some numbers. They can help you with a reasonable loan program that will meet your needs.

The Loan Types

Once you've found a local mortgage lender, you have two loans to choose from. Each type has its perks and of course, disadvantages. It would be best to learn about the two for you to determine which one will best suit your needs.

The first type of loan is the Construction-To-Permanent or One-Time-Close/  Single-Close Loan program. You, as the borrower, will get to have two separate loans which are the money for the land purchase and the building of your home in a single loan. This type works for borrowers with definite building plans and timelines. You get to have fixed interest rates which make for steady payments. You need only qualify once, avoid intervening liens, and pay the interest during the duration of the building of your home by getting a construction to permanent loan.

The second type is the Stand-Alone or Two-Time Construction Loan Program. With this type of loan, you'll need two fees for two separate loans for the construction and mortgage. It gives more flexibility in planning and increasing the amount of your credit. However, since you have two loan settlements, you need to apply and get approved for two loans, which means you will need to pay the closing costs twice. If you're unfortunate enough, you can face foreclosure if you disapproved of permanent financing.

The Chosen Location

When choosing the area of your future home, make sure to find a place that is comfortable, accessible, convenient, and within your budget. It would also be best to check the local ordinances of the location. Why? Zoning laws exist, and there is a list of rules that restrict the type of buildings that are built and how one can use them in certain areas.

The Builder

You need to work on your research to find a licensed builder that will receive your mortgage lender's approval. Make sure to check their credentials, references, what previous projects they accomplished in the past, and reviews Sun Point Appraisals - real estate valuation Scottsdale.

When choosing a loan, One-Time Closing offers way more benefits than Stand-Alones. Once you've made up your mind in building your home, make sure to find a good Mortgage Lender El Paso. Find a lender that can understand your needs and offers excellent construction to permanent loan.