Choose A Construction Loan to Build Your Dream Home in the Golden State
October 23, 2012Building a home from the ground up is the dream of many people. After years of building good credit, saving money for a down payment, and becoming financially stable, ownership of a home is the ultimate reward. Many times, finding a home that suits one's fancy can be a difficult task without having to do some major construction to a pre-built home. Luckily, building a home from the ground up is a possibility. Building a new home may require purchasing land, drawing up blueprints and many months of constructions, however the outcome is the ability to create a dream home that is completely to your specifications.
The state of California is one that is dense in population and for good reason. California is known as the golden state, with enviable weather and abundant opportunities for businesses and individuals. Building a home in California will require some patience and lots of planning but can be done with the aid of California construction loans. A construction loan is different from the traditional home loan in that the construction loan offers the ability to purchase a lot of land as well as construct a new home on the lot. Applying for a California construction loan will require the same qualifications as a general home loan. Proper documentation of income, a decent credit background, and necessary down payment amount are required for loan approval.
Appraisals are an important part of building a home that is not always a requirement while purchasing a pre built home. The home and land lot must be appraised at or above the financed amount for approval of funding. Appraisals may happen several times during the process of building the home, especially during the beginning of the loan approval process and at the end of construction. Professional blue prints, properly qualified contractors, and the right equipment and materials will help build a quality home and ensure that there are no stalls during the building process.
A residential loan can be relatively simple to secure if you go through the right company that will offer help during every step of the way. From the application process, to the dispersion of funds, on to the final approval of residence, a residential home loan in the state of California is a realistic dream for those who plan and choose a good construction loan firm.