You thought building your new home would be a snap but now you find that getting the construction home loan is complicated and you’re beginning to wonder if it is worth it. If you are acting as your own general contractor, even on part of the construction, your home loan will not be a conventional one. Janks Construction can help you with all of your construction needs.
Instructions:
Step 1
Take your plans to the bank–literally. Construction home loans are not sold on the secondary mortgage market so a local bank will finance the project and when the house is complete, you can roll the construction home loan in to a regular home mortgage. The bank will have an appraiser do a preliminary assessment of the value of the finished home from your plans.
Step 2
Put money down or buy the lot, yourself. The lender wants to see that you have some interest in the value of the home and in making sure it gets completed. It helps if you own the lot free and clear.
Step 3
Shop for the best home loan rates. Unlike conventional home loans where most banks are competitive, construction loan rates vary from one institution the next, sometimes by as much as 3 points.
Step 4
Take out builder’s risk insurance. Even if the subcontractors you hire have commercial liability insurance, that won’t protect you or the bank from a fine or storm. You need a builder’s risk policy for total coverage.
Tips & Warnings:
-Shop the banks but don’t authorize a credit check until you find the one with the best rates. Every time someone checks your credit – your rating goes down.
Improve your home with Janks Construction
Read more at the source:
http://www.ehow.com/how_4476821_choose-construction-home-loan.html
Janks Construction 
Posted on August 10, 2010