iBank - Building Construction Loans

Building Construction Loans

There are many variables to take into consideration when taking out a building construction loan. Communication with both the lender and the contractor is vital. Details of the construction are important to the lender for designing a loan package, and details of the funding are important to the contractor for planning construction. There are no absolutes on either end, and situations frequently change during the course of construction. All parties involved should be informed at every stage of construction.

It is important to note that interest rates in building construction loans are variable, usually placed at a spread to the prime rate (the interest rate banks offer to their most credit-worthy customers). During construction, only interest payments need to be made, but it may be wise to purchase a rate lock agreement that is valid for the duration of the construction period to keep payments steady.

All about Building Construction Loans
It is also important to bear in mind that construction delays are common, and the lender must be kept aware of all that is going on. A construction loan can be converted to a mortgage loan once a certificate of occupancy is issued. Luckily, the lenders at ibank.com can take the hassle out of building construction loans.

Since communication is key and situations are variable, ibank.com's Loan Center makes negotiations easy and loan packages flexible. Loans to meet each borrower's specific needs can be designed, negotiated, and approved online. And ibank.com gets funds disbursed faster, so construction can get started sooner. Questions can also be directed to customer service by phone, at (877) 999-6465.

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Building Construction Loans

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