Consider the following What you will need The Construction/Perm Loans

6) Don't underestimate your need for up-front cash. Utilize the Pre Construction Budget Worksheet at www.myconstructionloan.com A Construction Loan does not pay pre-construction costs such as: Perk test, septic plan, soils engineering, building & foundation plans, plot and site plans, appraisal & credit reports or fees to municipality for plan check, and etc.

7) Initial Funds from a Construction Loans are not disbursed until after the Site Plan has been approved by the local government agency.

8) Lenders normally have a fixed draw schedule tied to each part or phase of the construction project.

a. Typically, the lender will send out an inspector to verify that specific work has been completed.

b. If the inspection passes, funds will be released to pay subcontractors and suppliers who completed work during the inspected part or phase.

c. If you request more draws than allowed per project, you may be charged a nominal fee per draw.

A type of Construction Loan can include both the construction line-of-credit and residential mortgage as one loan known as a “Construction/Perm loan”.
(See The Construction/Perm Loan) at www.myconstructionloan.com

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