Have you worked with a Birmingham mortgage company in the past that left you with an uneasy feeling? Did it seem like they really, really wanted you to take a certain kind of loan, even though you weren’t sure it was in your best interests to do so? When you work with Gem Home Loans, you won’t ever have to deal with any of that foolishness. When we recommend a loan, we’ll do it because we feel you’ll be able to handle it – not because we’re trying to make a ton of money through a commission.
A lot of our clients are looking to build a home from scratch, from the ground up. Others are looking for money because they’re buying a so-called “fixer-upper” home. Still others need a loan because they’re planning major renovations. In all of these instances, people will typically want a construction loan.
Getting any sort of loan can come with some complications. But a construction loan is often particularly complex. Here’s some information on why this is the case.
Most people who want a construction loan are lacking collateral. It’s not that they don’t have any, it’s just that they usually don’t have as much as other people who are trying to get a more traditional loan. As a result, it will usually take more time and effort. But that doesn’t mean it won’t be right for you. In fact, you’ll actually have quite a few options – more than you might assume. Here are some of those options.
How much interest can you expect to pay on a construction loan? It largely depends on the prime interest rate. In a way, it’s kind of like an adjustable rate mortgage in that payments will fluctuate. It is important to note that construction loan interest rates are usually higher than conventional mortgages.
This information isn’t meant to dissuade you from pursuing a construction loan. We just feel that it’s important for people to know as much as possible before they apply for one. You might find it more difficult than if you were looking for a conventional loan, but that doesn’t mean you’ll get it.
One of the things that makes Gem Home Loans different from any other Birmingham mortgage company is that we make sure our clients are informed at all times, so they can make the best decisions. Learn more by calling (248) 780-1030 or contacting us online.