Depending on the size of the construction project, there can be a number of members to the construction lead such as a builder, architect, lawyer, interior designer, landscaper, general contractor, and so on. One potential team member that can be over looked or never really added is the construction mortgage broker.

While every person or project is different, the basic rationale I see most often with not having a mortgage broker recruited into a construction team is that construction financing is basically an on demand commodity that can be arranged once everything else has been arranged or prepared for the project.

And while this may be true in some situations, the majority of construction projects would benefit from actually getting a construction mortgage broker involved in the project sooner or later for a number of key reasons.

First, any project planning is going to be based on the amount of capital that will be required to complete the work. If the construction financing is only sought at or near the end of the project and fails to deliver the amount of fund required, the project may have to be quickly adjusted to work with the money available which can incur more costs and potential delays. The longer the lead time, the more time available to create a financing strategy that will meet the needs of the project and be incorporated into the project so that start point for actually beginning work can take place on time and within budget.

Second, when there are course corrections to the project either from changes in scope, construction cost over runs, or changes in regulatory guidelines that will impact the budget of the project, a construction mortgage broker who is working with the project team is already up to speed on the overall project profile and can then more quickly react to any changes that may need to be made to the approved construction financing mortgage, or to acquire additional sources of funds before they are required.

Third, if there are any administrative issues with draw advances that crop up, having a construction mortgage broker on your team that already has a working relationship with the lender or capital provider can increase the speed in which problems can be solved and additional costs avoided via unnecessary delays.

If you have a construction project that you’re thinking about or planning out, I would welcome the opportunity to discuss the details with you and see if there is a fit for my services on your construction team.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Mortgage Broker – Construction Team Member first appeared on Ontario Construction Loans And Mortgage Financing.

“For Big or Small Projects, Construction Mortgage Brokers Can Be The Key Element For Successful Construction Financing”

When I spend the time to go through the construction financing process with potential clients, its not uncommon that the individual(s) don’t believe me when I talk about all the different things that need to be managed and all the things that can go wrong with construction financing, especially when there are two or more construction mortgage elements to manage during the life of the entire project.

Its also not uncommon that the same people come to me in the middle of the project or after the dust has settled and said they should have paid more attention to what I was trying to tell them.

Construction financing can be a tricky process to manage once the commitment is in place. And the more people involved on both sides, the more likely there are going to be challenges to get draws advanced on time and for the requested amount.

The one component that can make or break the way the cash actually flows is the ongoing involvement of the mortgage broker. For me, finding and securing the construction loan for any stage of the project is only the beginning of the work involved. After doing this work for over 30 years, I have come to appreciate that a good mortgage broker needs to be monitoring the progress of the project and needs to get involved to help smooth out any issues that may arise in the administration process between the borrower and the lender.

And from a relationship point of view, this is not only a value added service on my part, but a way to keep both my customers happy. That’s right, both the borrower and the lender are my customers. If a construction loan falls apart for whatever reason, its going to be more difficult for me to utilize the same lender in the future as I’m going to be linked to that bad experience whether that’s justified or not. And from the borrowers point of view, I want the client to be my customer for a long time and to tell others about how well we worked together through the project.

If you end up working through a broker who has no appreciation of this dual customer relationship, don’t expect to get a whole lot of useful help if you run into cash flow problems during the project. And if you’re working with a lender directly, you truly are on your own.

Of all the different types of mortgages I work to arrange, construction financing is by far the most challenging and one in which the mortgage broker’s role can many times prove to be invaluable.

Click Here To Speak To Construction Mortgage Broker Joe Walsh

The post Mortgage Brokers Can Be Key To Construction Financing first appeared on Ontario Construction Loans And Mortgage Financing.