When you’re considering a home build or a home renovation project you may want to consider the benefits of applying for a home construction loan in Atlanta. There are many different banks and businesses in the Atlanta area dedicated to loaning homeowners and contractors money to finance the construction cost of building or renovating home. If you are considering taking out a loan for your next construction project, this post is for you!
What are home construction loans? How do they work?
Home construction loans can be taken out by either the home-builder or the prospective owner in order to get enough money to cover the cost of building or renovating a home. These types of loans can be difficult to get from a bank because loans are usually backed with the collateral of a home and when you are taking out a loan to build a home, you obviously do not have the preferred collateral of a home.
Home construction loans are typically short term loans with a maximum time of one year. To able to get one of these loans you will need to consult with an experienced loan officer and show them your plans with a timeline and a budget. If the loan is approved, the borrower will be put on a schedule following the construction timeline and will be expected to make the interest payments for the loan during construction.
When the construction is complete, the loan will typically roll-over into a mortgage where the borrower will pay the closing cost only once. Keep in mind that home construction loans are not a very big aspect of the market and many banks will not advertise these types of loans because they can be a risk. It is usually in your best interest to reach out to a local bank or credit union in Atlanta for a home construction loan.
Difference between home construction loans and home renovation loans.
The difference between a home construction loan and a home renovation loan is just like it may seem. A renovation loan is for when you are fixing up the home you currently have and a construction loan is for when you are building a new home. A renovation loan is typically for a period up to 12 months, with no prepayment penalty, and where you only have one set of closing costs. A home construction loan can last for a longer period of time and varies from project to project. Keep in mind however, some businesses do not distinguish between home construction loans and home renovation loans. When you talk to a loan officer, they can help steer in the right direction.
Where to get a home construction loan in Atlanta?
Honesty is the most important aspect to look for when choosing where to get a construction loan in Atlanta. Find a bank or loan officer in Atlanta that you trust and simply talk to them about what you want to do and what you will need to apply for a loan. Here is a short list of a few places in Atlanta that offer home construction and home renovation loans.
Brand Mortgage offers home equity loans to help you refinance your home to pull out enough cash to renovate your home. They can also assist you with taking out a second mortgage to get more money for a home construction project. No matter what your financial situation may be, they want to assist you and will listen to what you have to say and will help you come up with a solution.
BankSouth Mortgage offer construction and renovation loans for people who want to turn their current home into their dream home. They also offer loans for people building their dream homes from scratch. These loans can be stand-alone or they can be given in conjunction with a new home purchase or refinance. The renovation loan offered through BankSouth covers renovations up to $35,000 and can be combined with new home financing.
Macon-Atlanta State Bank is another local bank offering construction loans. They have the ability to offer competitive rates, affordable payments, and flexible terms for their construction loans. Their home construction loans can work for home renovations as well as building a new home. If you need a home construction or home renovation loan in Atlanta, you may want to call Macon-Atlanta State Bank.
Construction Loan Consultants
As you can probably guess by their name Construction Loan Consultants is an Atlanta-based firm offering construction consultation services. Unlike a bank that will expect you to come to them with a full plan for your construction project, Construction Loan Consultants can help you come up with up with that plan.
BB&T is another major powerhouse in the home construction loan department. They can help you with financing your project from start to finish. They distinguish between new home build loans and home renovation loans, unlike most of other businesses. They understand the value in renovating your home into your dream home and they want to help you achieve that. If you are looking for an experienced loan professional, BB&T may be your best bet.
How much to ask for?
Now, that you are convinced you will need a home construction loan, your next logical question will be, “how much should I ask for?” We always recommend overestimating because you will need to account for things such as weather stalling the process and any other type of unexpected push-backs. I recommend asking for the largest amount because they will try to limit the amount they will give and you will want to have some bargaining room.
You may be asking yourself, “What is a dumpster company doing talking about construction loans?” and the answer is actually pretty simple. Many people who rent dumpsters from us are looking to rent a dumpster in Atlanta for their home build or home renovation project. When our customers come to us they are looking for the best deal and that may mean that they have taken out a loan or plan to take out a loan. We have learned a great deal about the home construction business and we are here to pass some of that knowledge onto our readers and potential customers.