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Having a new home built from scratch is for most home buyers a very exciting opportunity. But new home construction carries with it many challenges, the first being the financing. According to research, only about 10% of loan originators issue more than 1 construction loan a year. In short, most loan originators do not have much experience when it comes to new home construction loans. This is true in market areas such as Malibu Real Estate.

When seeking a construction loan you should ask the loan originator the following questions: exactly how many construction loans do they approve per month, what are the sources of their funding, and do they have any. Consider doing research on your own using the internet. While researching online, be advised that many online applications for home loans are actually lead generators and are not actual applications for home loans. Many online mortgage companies will take your applications, take the information sell it to a third party.

One reason that most loan originators are inexperienced when it comes to issuing new construction home loans is because of the inherent difficulty of issuing such loans. When a loan officer is reviewing a new home construction application they must consider a wide variety of factors including: the ownership status of the land, whether or not a general contractor is involved, soft and.

In market ares such as Siesta Key Florida real estate, securing proper financing for your new home is difficult. If you feel you must have a new home, you want to consider purchasing a home located within a subdivision. Home builders who build homes within subdivisions are easy to work with. Because the home builder and the lender are closely linked, procuring financing within a subdivision is typically much easier than obtaining a loan independently.