Getting a Construction Mortgage Loan

1. Whether you’re in the process of buying and/or building a new home, getting a construction mortgage loan is one of the best things that you can do in order to make the home of your dreams a reality. What is a Construction Mortgage Loan A construction mortgage loan or construction financing loan is a short-term loan that attracts a higher interest rate than a regular mortgage. Here in Canada, there are three types of construction loans that people usually apply for are. Those types are single advance construction loans, progress advance construction loans, and raw land construction loans. Single advance construction loans are loans that allow the buyer to buy a home from a builder. From there, the buyer applies for a mortgage. Progress advance construction loans are loans in which the borrower advances the money. This occurs at predetermined stages of the construction of the home. As for raw land construction loans, they are land loans that often require either a higher down payment or equity. Once the property is completed, you should ask your mortgage broker to apply to a lender that offers the best mortgage rate. If you like, we can be the mortgage brokers who will help you figure out which loan is better for you and your loved ones. What is a Single Advance Construction Loan A single advance construction loan or a new home construction mortgage is a mortgage that allows the buyer or the borrower to buy a home from a builder and apply for a mortgage. This is the most common and simplest construction mortgage to obtain. What is a Progress Advance Construction Loan As the name suggests, a progress advance construction loan is a loan in which the borrower advances the money at predetermined stages of the construction. In other words, the loan progresses as you make your advance on it. In order to start the project to finance the initial construction, the borrower should already have funds on hand. Depending on who is doing most of the building, a borrow must require a Tarion Warranty. Visit: https://sunlitemortgage.com/