How to Find an Experienced Expert in Residential Construction Loans

More than one expert in the specialty of residential construction loans is necessary in the homebuilding process. Each person that deals with the any part of the construction loan process should be a highly competent individual with plenty of experience. Having a positive homebuilding experience may hinge on the competency of the experts involved in the process.

Loan Officer

It is important to find a loan officer with the expertise and experience needed to walk you through each step of the residential construction loan process up to point of closing. Ideally, this construction loan expert will specialize in this particular type of loan. The qualification process of a residential construction loan requires expert assistance. The loan officer should also be able to walk you through locating a reliable, reputable, qualified general contractor. Advice and assistance in developing a realistic construction timeline is another one of the loan officer’s many duties. Working closely with you to develop a realistic budget for the project is necessary, as well.

Where to Find an Expert Loan Officer

Local banks are usually the best option for locating a reliable and knowledgeable expert in the area of residential construction loans. If there are no experienced experts in this field available at your local bank branch it may be necessary to explore other options. A regional mortgager is a good alternative to a local bank. Word of mouth referrals may also be helpful. For example, if you are building your home in a subdivision, asking the developer for a referral to their loan officer may be a good idea. Often, general contractors have a preference for a certain loan officer that they trust and feel comfortable working with, and referring; so if you have chosen a builder before beginning the loan process, ask them for their opinion on the subject. Whatever lender you choose should possess a minimum of 5 years experience in the field of residential construction loans.

Loan Servicing Representative

After your construction loan closes, your lender’s servicing department will take things over. It is this department’s responsibility to process residential construction loan draws, set up necessary inspections, and convert the construction loan to a permanent mortgage once construction is completed. If an individual representative in the servicing department is not assigned to you, ask for one as soon as possible. This representative should have at least 2 years of experience with the lender. This is one expert involved with your loan that you may never meet. Most communication is likely to be conducted by phone and via email. Although they may be handling a caseload of dozens of active loans at one time, it is still possible to develop a good working relationship with the representative through weekly communication throughout the building process.

General Contractor

The final member of your residential construction loan team is your general contractor. The contractor will be in frequent contact with the lender. A contractor who often works with the same lender will be more knowledgeable in that particular lender’s requirements as far as insurance and licensing and so forth.