Construction Loans Can Be Hard To Come By
The Bar For Construction Financing and Other Forms Of Mortgage Financing Is Significantly Higher in 2010
As we move deeper into the recession, construction loans are becoming harder and harder to secure. Or put another way, lenders tend to be defaulting to letter of the law with respect to their application criteria and anyone that deviates from the requirements will have a hard time getting financed.
Gone are the days when close enough was good enough or when a certain amount of customization was almost expected by applicants.
And even though we are all hearing the positive news reports of how the economy is moving out of the recession, the capital markets are lagging behind and if anything are becoming more restrictive.
So how do you deal with this if you have a construction project that requires financing?
The simple answer is to make sure that your project is well planned out and that all the lender requirements are covered off to a higher level of completeness.
The devil right now is in the details, and for those that like to cut corners or live too close to the edge, there isn’t going to likely be much if any construction funds available to them by third party lenders or investors.
This is also where the benefits of a mortgage broker that specializes in construction get further magnified and why you may also want to stay away from less experienced brokers that occasionally dabble with a construction loan application.
There is less room for error in the application process these days, so its best to make sure you’re focused on the most relevant lenders and following their internal process to improve your chances of success.
The best way to accomplish this is through the assistance of an experienced construction mortgage broker who can leverage their lender relationships to stay on top of the constantly changing lender requirements.
Most projects do not have the luxury of extra time to find and secure construction financing, so in order to keep your planning time line on track in 2010, make sure that you over deliver on your application and the standard requirements, otherwise you could be searching for a construction mortgage for an extended period of time.
If you have a construction project that you’re planning or stuck locating financing for, I suggest that you give me a call so I can quickly assess your situation and provide relevant options for your consideration.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel