Get A Construction Loan To Build A Dream Home
Max
It is significant to plan before financing the initial purchase of a block of land, followed by the home constructing process. You also feel confused if you will have to take a loan for the land and then another loan for the home you build. A construction loan features a progressive draw-down facility where you receive the total loan amount in pre determined convenient installments that are directly linked to your construction schedule.
Interest is only levied on the total amount of finance drawn down at any given time throughout the term of the loan. During construction process, your builder will require payments at certain stages such as laying a concrete slab, roofing the frame etc. In a construction loan the lender, instead of making one full withdrawal, gives the access to funds in small sums at various intervals.
There is a wide variation in the market place; some products are offering unlimited amounts of draw-downs while others charge fees of a fixed amount per draw-down. On many loans the lender will require to do valuations on the property for each of the draw-downs and you will be liable for valuation fees.
Most lenders offer a construction feature with their variable rate loan, in fact, statistics tell us that over 71% of variable rate loans are available as construction loans. There are various mortgage products which can be used as construction loans. Ask for the loans that offer a construction facility and compare them to find the best one for you.
You also need to consider other factors such as fixed rates, variable rates, redraw facilities, offset accounts, ongoing fees, early repayment penalties etc. Everybody has a set of his own personal requirements and it is important to choose a loan to fit with that. When you get a construction loan to build a dream home the best thing is that you can customize the home in a design that is most appealing to you.
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years.http://www.homeloanexperts.com.au
