If you’re going to be needing construction financing in 2011 for a construction or development project, its never too early to start the process of getting your construction loan in place.
Even if the projected start time may be several months away, I would still recommend that you build action items into your work planning process to start the ball rolling towards your efforts for locating and securing a construction mortgage. Most builder, property owners, and developers tend to leave the financing aspect of the project towards the end, assuming that funding will be readily available to them at the rates and terms they require. And while this may hold true most of the time, there are many instances when it doesn’t, creating unnecessary delays and added costs to your project.
Each year is also always somewhat different as lenders review their portfolios and lending programs and make adjustments that will strengthen their own businesses. When these changes get implemented, even experienced builders and developers can be caught off guard, especially if they don’t leave very much time for the process to be completed.
For new builders, the learning curve can be a bit steep so the sooner you get started, the more likely you’re not going to miss any key elements to the planning process that will cost you grief or money later on.
At the other end of the spectrum are the people who do start early and try to do everything themselves, spending considerable time trying to digest all the information available on the subject both on the web and in general print. Even though this time investment is an important step, it doesn’t replace the experience you can draw from by using a construction mortgage broker to help navigate the construction financing landscape as it pertains to the project you’re in the middle of or planning ahead for.
Part of good construction project management is to surround yourself with a good team of experts that you can draw upon for different aspects of the work. This holds true for the construction financing aspects of the project as well as there can be many nuances to any given construction mortgage that will not always be evident too the borrower regardless of how much research they do.
If you’re going to have a construction financing need in 2011, I suggest that you give me a call so we can discuss your requirements together and go over different approaches for your consideration as well as any issues that could impact the construction mortgage process so you can proactively deal with them before they have a negative impact on your project.