Three Steps for Facilitating the Construction Loan Process
There’s never been a better time to increase your understanding of the finer points of construction loans. These loans are popular among prospective homeowners because they provide upfront financing to build customized homes, and consumer interest in them usually increases at times when existing home inventories are low. Construction loans are more complex than regular mortgage loans, but you can simplify the process and prepare your clients by taking a few preliminary measures.
Have Facts at the Ready
Many first-time construction loan customers are also first-time homebuyers, so a complete understanding of all the various loan products that are available is critical to assisting prospective clients in finding the one that best fits their needs. It’s also important to be familiar with the basics of each client’s financial situation and intended goals in order to identify possible areas of confusion. This will allow you to provide relevant guidance and information when they’re needed most.
Proactive Communication is Essential
As a loan originator, taking care of financial matters is all you do, but obtaining financing is just one step in the overall home construction process for the prospective homeowner. By attempting to anticipate the client’s questions and addressing them before they ever come up, you’ll help to streamline the process as you walk them through the multiple credit checks and other additional steps that are necessary to pass through the initial approval, underwriting, and finalization procedures.
Pay Attention to Detail
Ensuring that the loan application package is properly executed will go a long way toward preventing unexpected surprises at the closing as well as later on. Since most clients that you work with will have little experience when it comes to assembling and filling out the necessary paperwork, it’s in your best interests to review everything for accuracy and completeness well ahead of the closing date.
Have questions? Speak to an expert for more information.