Picking the best lender for a residential construction-to-permanent loan

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Kookaburra
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Joined: Thu Apr 02, 2020 11:14 pm

Picking the best lender for a residential construction-to-permanent loan

Post by Kookaburra »

When shopping for a lender, it is of course important to compare rates, loan costs/fees, reliability, etc.

What additional considerations and questions should be researched and asked when looking for a construction lender for a new home build? The loan would be a construction-to-perm loan with a single up-front closing, but the bank would be doing monthly inspections/draw releases, so they would be much more “hands on” over 6-12 month timeframe than a traditional purchase and close process. It seems like there should be additional factors and questions to consider along these lines, but I can’t seem to crystallize the questions in my head. Help would be appreciated. Also, for folks who have gone through this process, any tips related to the lending side? Thank you!
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