Construction Loan

Picture this scenario: You’re invited your supervisor over for lunch. You’ve planned all week: you’ve cleaned the house, cooked a fantastic meal, and went out and bought a ridiculously priced bottle of wine. So far, things are going smoothly. You seem to have made a good impression; everyone’s having a good time. Then, just as you think your supervisor is about to utter that magical word, “promotion,” that sorry excuse of a ceiling of yours finally gives up, and caves in.

This situation could have been avoided if only you’d gotten yourself a construction loan! Don’t just sit there and dream about a good-as-new home. Apply for a construction loan, and fix that old baby up!

A new ceiling isn’t the only thing a construction loan can get you. People take out construction loans to remodel kitchens, bathrooms and other rooms around the home; to add extra rooms or floors to hold a growing family; to repair various parts of the house; and for various types of other home-improvement causes.

People who work in lending institutions are human, too, and they understand the need for a comfortable home. For this reason, there are loads of construction loan options available out there, and many kinds of construction loans to choose from. Be prepared: construction loan-shopping is not a simple task; you can’t just pull a number out of the construction loan lottery. You must know your requirements and weigh the possibilities available to you. Hunt around to find the construction loan that best fits your needs.

The type of construction loan you choose depends on your situation, and the kind of home improvements you hope to make. Consider the following scenarios:

While out on a house hunt, a newly married couple finds a home straight out of their dreams. It’s to die for—it’s in a terrific neighborhood, walking distance from all amenities, has an enormous backyard, stunning living room, and enough large bedrooms for the two of them, plus the little “addition” they’re planning to start working on soon. There’s just one problem: the kitchen looks like it was lifted right out of a frat house on the last night of exam period! This otherwise-happy couple has 2 choices: forget their would-be-dream home and shop for second best, or take out a construction loan that covers the cost of the new home PLUS the cost of re-doing the kitchen. If they’re smart, they’ll look into option #2. Don’t waste your time and energy searching for perfection. Take out a construction loan, and create perfection yourself!

Years ago, a professional couple plus their young son emigrated to the U.S. Within a few years, they’d found jobs, added two daughters to their family, and purchased a house. Now, Grandma and Grandpa have retired back home and have decided to divide their time between the old country, and the home of their new grandchildren. It’s decided that the most economical form of accommodation for grams and gramps would be the addition of an extra bedroom to the family home. This extra bedroom will be attached to the first floor, and cut into a small portion of the family’s large backyard—a small price to pay for the joy of having everyone together again after all these years. The couple opts for a second mortgage, a type of construction loan subordinate to the first mortgage, to help cover the costs of adding on a new room.

There are many, many possibilities as to why you might want a construction loan. Don’t just sit there and daydream. Hit up the internet or pay a visit to your local bank, and find out about a construction loan that will allow you to create the home of your deepest fantasies!