Cohen Construction Cost Breakdown

The current economic climate has had a dramatic impact on the home building industry. Many construction companies including Cohen Construction have been forced to reduce their activities and cut back on their budgets in preparation for foreclosures. This is leaving many potential builders without the financing they need to get the job done. However, even if you cannot qualify for a bank loan right now, it is not out of the realm of possibilities. There are lenders who are willing to work with home builders in order to find a solution.

home building

Most people who are planning to build a new home often fall into one of two categories. First, there are those who simply want to downsize from a two-bedroom home to a one-bedroom home because they were unable to sell their existing home. Second, there are those who want to construct a custom home that reflects their individual personality and style. If you fall into either category, you may be able to get your construction loan based on your custom home plans and the market value of your existing home. Of course, you will not be able to secure a construction loan if you have not convinced a lender of your ability to pay back the money in a timely and affordable fashion.

In order to find a lender who is willing to take a chance on your custom home construction, you will first have to convince a lender that your project is something they would be willing to take a chance on. One way you can do this is by providing proof that you have saved enough money over the past year or so that you can afford to purchase your new construction. Many lenders will require you to provide them with a detailed list of your expenses as well as a complete list of your personal assets, such as retirement funds and insurance policies. By providing these documents to your banker, you will show them that you have the means necessary to make large payments on your new construction. Most banks are willing to seriously consider new construction loan applications from borrowers who are capable of proving their construction financing capabilities.

Once you have decided to move forward with your custom home construction, you should also start looking for a general contractor. You will want to contract with a professional contractor who has experience working with architects and other skilled trades involved in the construction process. It will be necessary for your general contractor to submit a construction bid to the various lending institutions to find out what kind of interest they will be able to procure for your construction loan. When bidding, you will want to make sure that your construction loan does not exceed the total amount of funds that you have set aside to finance your construction. The greater the amount of money that you are able to secure, the lower your interest rates will be. However, if you are unable to secure enough money to pay off your loan, you may end up having to refinance your construction or find a different home to live in.

In order to get competitive interest rates on your new construction loans, you will need to provide a lot of financial information to your prospective lenders. You will likely need to submit pay stubs from the past year, current income tax statements, copies of your credit report, unemployment insurance forms, copies of business licenses and permits, and a 1099-C form from your business. It is important for you to remember that these forms will be required when you apply for your new construction loans.

After you have narrowed down your search for a builder who is qualified to provide you with a custom home building design, you should also spend some time talking to your general contractor and your architect. Your architect can tell you several things regarding the cost overruns that might occur as well as ways to make the project more efficient. Before finalizing your construction contract, it is important for you to make sure that you understand all of the details of the contract. You should also get the OK from your architect before you enter into a contract. Once you have found the right custom home builder and construction company, you can start working on your new dream home.