Construction Mortgage Planning
“Get A Jump On Your 2011 Construction Mortgage Planning Process”
For those of you looking at completing one or more construction projects in 2011, now’s the time to start the construction mortgage planning process.
Even if you’re looking at a late summer or fall start, getting a jump on arranging construction financing is typically a good idea for a number of reasons.
First, and almost without exception, property owners, builders, and developers will spend almost all their up front time planning out the work, leaving the construction financing aspect until the very end of the pre construction period. Inevitably, they leave it too long and it can be a challenge to get everything lined up and in place by the planned start date, especially for first time builders.
Second, in the early part of the year, there is going to be less application volume being put in front of lenders (at least in most years), which means lenders may be more flush with funds and will be wanting to get their money out in the market place. While early shopping doesn’t guarantee a better deal, it certainly is possible, especially with private lenders.
Third, in reverse to #2 above, if you plan to start a project in the prime building season in Ontario, there is going to be a lot more competition for available funds. Better deals will get better rates, and more applications in general will slow down the overall process for each individual applicant. As I mentioned, most people leave the construction financing process to next to the last minute, or at least towards the back end of the planning period, so the herd mentality is going to kick in later spring and early summer with everyone looking for construction loans all at the same time, putting greater stress on the financial system to process and approve requests on a timely basis.
Fourth, going through the construction mortgage planning process early on may uncover flaws in your construction financing assumptions, causing you to go back to the project scope and perhaps make some changes to the budget to more align with the construction funding your going to be able to secure.
The best first step is to find an experienced Toronto mortgage broker that you trust and start working with them early on in your planning process so that you can avoid some the problems associated with starting the process too late and gain the benefits of getting at it early.
Click Here To Speak With Construction Mortgage Broker Joe Walsh
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