Simplify Homebuilding

Short-term and Long-term Financing

By: Megan Boyd | Category: Financial Services | Issue: April 2019

Building a house is a two-loan process.

Building a house is a two-loan process.

First, you need temporary construction financing to cover the building costs. Then, you need permanent financing for your mortgage.

Eliminate uncessary stress by obtaining both loans at one location.

Here are three reasons why.

No. 1. Cost Savings

Financing both loans at one place, like a bank, streamlines your loan process. You provide information to one place, which uses it to prepare both loans.

You may save on appraisal costs too. By using the same bank for both loans, you may only have to pay for one appraisal and then a less expensive appraisal certificate to certify the construction is complete.

No. 2. Mortgage Pre-Approval

Securing both loans through the same bank may reduce your risk of mortgage delays by allowing you to get pre-approved early for permanent financing.

A pre-approval is based on documentation you provide at the time, assuming your situation does not change.

No. 3. Efficiency

During construction, your lender works with the builder or contractor to ensure invoices are paid based on the work done and materials provided. Your lender monitors the progress of the project so payments are only made for work completed.

By financing both loans through the same bank, the lender can schedule closing on your mortgage to occur quickly once the contractor gives the ok to move in.

You can have as much or as little involvement in the construction process as you want. Some customers prefer the builder to work directly with the bank. Others prefer to be hands on.

Building a house is a huge project. Find a lender you trust. You need a lender who is flexible and adaptable to your needs, and easy to reach by phone, in person or at the job site, as needed.

« All April 2019 Stories

RCB Bank Financially Fit

For more information, contact:

More about RCB Bank Financially Fit:

Top Stories

Ideas and Design for your Kitchen Remodel

The coming of spring inspires a sense of renewal and vision, and often directly impacts the desire for home improvement projects. ... Read more »

Rose District Revitalization

Over the last decade, Downtown Broken Arrow has become a premier destination for arts and entertainment. ... Read more »

New Ideas and Experts for Everything "Home"

Tulsa’s newest home and garden show is coming back for another great year. ... Read more »

Lawn and Land Maintenance Made Easy

To get any job done right, it helps to have the right tools, and when it comes to finding the right tools to work on your yard or lawn, look no further than TNG Power Equipment in Claremore. ... Read more »

Experience Victory

For more than 20 years, the Easter Production at Victory Church has been an annual tradition in the Tulsa area, drawing thousands to see the Easter story portrayed onstage. ... Read more »

For Free!