Understanding the advantages to working with the construction spec loan professionals can really open your eyes as to why so many builders today are making the switch. The days of the application process dragging on for weeks and interrupting businesses are no more when you work closely with the construction spec loan professionals. We sat down recently and discussed this with the guys over at ConstructionSpecLoans.com and this is what they had to say:
The key to any working relation is transparency, this means up-front underwriting on permanent loans too. When the builder has confidence in the lender, things move along easily and the builder is in a better position to secure more properties as the client base grows.
Your construction spec loans professionals will be in the best position to offer the builder quick turn around times on interim closings, many times within 30 days of receiving the final contracts, the plans, and all the specs.
Right out of the gate, you can expect no retainage hold-back, easy builder approvals, and a flexible draw schedule when you are working closely with the construction spec loan professionals. These are the keys to the builder being in the position to grow the business rather than spending countless hours trying to get an approval for the monies needed to buy properties.
When the builder is in the position to secure more than one lot on a large property, the spec loan team can offer up a simultaneous close for lot with interim financing.
When there are no third-party underwriters involved to slow construction loan approval processes, everything moves along as it should. Now the builder can make arrangements with buyers and be in a better position to deliver on those promises rather than being at the mercy of a lender who is outsourcing each step of the process.
In-house financing is now available for the builder for interim and even permanent mortgage loans. This allows the builder the opportunity to keep all their business with one company instead of having to source out to others who may not be as efficient as the construction spec loan professionals.
One loan originator now means one relationship, in other words you have one servicer from interim to the permanent loans. This is especially important for the builder who is up-scaling the business and needs to make sales in a timely manner. One relationship not only eliminates any confusion, it helps to speed up the overall process too.
There you have it, plenty of advantages to working with the construction spec loan professionals when your building company depends on it.