01 Mar 2023
By Kevin Gahagan

The Top Benefits Of A Single Close Construction Loan

Mortgage

The Top Benefits Of A Single Close Construction LoanIf you are thinking about building your own home, you might be wondering how construction loans work. There are plenty of options available, but one of the most popular choices is a single-close construction loan. This type of loan allows you to close on not only the construction expenses but also your financing costs at the same time. Essentially, a single-close construction loan will convert into your mortgage after the construction on your home is finished. What are some of the top benefits of this type of loan?

Save Time

One of the first benefits of a single-close construction loan is that you can save a significant amount of time. If you need to get a separate loan for the construction and financing processes, you will have to submit all of your required documents twice. Then, you will need to wait for the lender to review them both times. You can avoid this process if you combine the loans together in a single-close construction loan.

Save Money

Of course, you could also save a significant amount of money by going with a single-close construction loan. Keep in mind that each loan is going to have some origination and closing expenses. If you have to go through the process twice, you will have to pay these expenses twice. With a single-close construction loan, you only have to pay potential origination and closing expenses once, which can help you save money.

Fix Your Interest Rate

What happens if the average interest rate goes up during the construction of your house? This means that your mortgage may have a higher interest rate, and it could make your house unaffordable. You can avoid this risk by getting a single-close construction loan with a fixed interest rate. Then, if the interest rate drops down the road, you may be able to refinance. 

Consider A Single Close Construction Loan

In the end, these are just a few of the top benefits of a single-close construction loan. While these loans are not necessarily for everyone, they could be right for you. Do not hesitate to reach out to an expert who can help you figure out if a single-close construction loan is right for your needs.

05 Aug 2021
By Kevin Gahagan

The Process Of Buying A New Construction Home

Mortgage

The Process Of Buying A New Construction HomeBecause the housing market is so competitive right now, many buyers are looking at alternative options. Instead of looking for a resale home, some buyers are considering a new home. What is the process of taking out a loan on a new construction home? There are several factors buyers should consider.

Pricing On A New Construction Home

Many buyers are used to negotiating with sellers to get the best deal possible. On a new construction home, it is still possible to negotiate for a better price. Most homeowners are going to be negotiating for better items in the home than the purchase price. For example, it might be possible for buyers to negotiate for better counters, cabinets, floors, or appliances instead of asking for a discount on the price. It is also possible for buyers to negotiate for better options if they are the first or second people to move into the new community. Homes usually go up in price after the first homes in the community sell.

A New Home Is Often A Better Investment

Buying a new home is often a better investment than purchasing an older home. Newer homes tend to appreciate faster immediately after they are built. Many people like to buy a home that has had only one owner because items in the home are less likely to break. Therefore, homes with only one owner are often in higher demand, which can lead to higher property values on new homes.

Understand The Financing Process

Typically, prospecting homeowners need to put down a building deposit for the project to start. This is usually three percent of the projected sale price of the home; however, it can be higher or lower depending on the price of the home and the builders. In addition, homeowners need to be aware that they will need to secure financing when the building project nears its completion date. The lender might require a certain percentage down in order to finance the home.

Do Not Hesitate To Ask For Help

Buying a new home does have a few differences when compared to buying an existing home. Homeowners should reach out to professionals for help with this process to make sure they get the best deal possible.

18 Jun 2020
By Kevin Gahagan

Home Renovations Are On The Rise

Real Estate

Home Renovations Are On The RiseMillennials are among the most common demographic buying homes today. According to numerous reports that have been published, many homeowners are planning on conducting a home improvement project this year. In large part, this is due to millennials wanting to improve their homes.

Furthermore, home improvement projects may have bigger budgets this year when compared to prior years. It will be interesting to see what kind of home improvement projects unfold this coming year.

Types Of Home Improvement Projects

There are numerous renovation projects that homeowners are going to undertake this year. The most common are outdoor remodels. Many homeowners want to produce encompassing decks, providing a larger space for people to get together and hang out.

In addition to decks, people are looking to add patios as well. Patios can be made from a variety of materials; however, stone is becoming more popular. Homeowners are thinking about adding outdoor kitchens as well.

The most popular indoor renovation project involves the bathroom. People are starting to realize just how much time they spend in the bathroom. With new trends unfolding in terms of baths, showers, and toilets, many homeowners are looking to make an upgrade.

Finally, kitchen renovations are going to be popular as well. This comes as part of a push to generate an open concept among the kitchen, living, and dining areas. With new appliances coming out, there are plenty of opportunities for kitchen upgrades as well.

Reasons For Home Improvement Projects

Many experts are wondering why these home improvement projects are taking place now. The biggest reason is that homeowners are worried about the impression their house would make on their guests. Many homeowners are indicating that they have been planning these projects for a while; however, they haven’t had the time or money to carry out this project until now.

More Home Improvement Projects Are Coming This Year

With more people looking to carry out home improvement projects, expect to see a major jump in home values. Many homeowners enjoy a significant return on the investment they make in home improvement projects. This means that the value of their house may see a jump once the project is finished.