Unless you have all the cash you need, building a home will require some type of financing. In most cases, this financing is referred to as a construction loan. And banks can play a big role for you.
Construction loans are short term loans. They typically span only several months up to one year. They act as a bridge loan to complete your home until you've finished construction at which time they are paid off by replacing them with a regular home loan (usually a typical 30 year mortgage.)
YOUR LOCAL BANKER IS AN IDEAL SOURCE OF FUNDS
Ask your banker first. If you have an established relationship with your banker, very often something can be arranged for you to fund your home building project. Your banker, however, may not be set up to offer construction loans so you'll need to approach him with this question before you go too far in your planning. Never assume, always ask.
If he cannot do it, he very well may know of another local bank which can help you. Bankers are in the business of loaning money. That's how they earn their keep! Making wise and profitable loans is what keeps them in business. Yet, a construction loan is a special animal. On the one hand, the loan is a good one because it's dealing with real estate and real estate, over the years, has proven to be excellent collateral.
On the other hand, if the lender is not experienced with construction loans, they may not want to take it on. There is a lot of extra time, effort, and paperwork involved with a construction loan that not only costs more to prepare and administer, but can also be confusing, creating potential problems that can eat away at the banker's profits.
If the banker is experienced and eager to work with you, it might just be your best and least expensive choice for a construction loan. Over the years in the homebuilding business, I've been through a lot of situations. Let me recount some of the questions I've received. The answers should help you:
Q: What is involved in the qualification process when applying for a construction loan with a bank?
A: There is a lot more involved when applying for a construction loan than for a car, furniture, or even a home for that matter. Yes, of course, your income and credit ratings are important but your assets are also involved. The amount of cash on hand (in accounts and various investments) is also looked at. And he'll also take into account the current value of the building lot as well as the future value of the land/home package once the home is built.
Q: How much down will the banker require before loaning the money?
A: Invariably, a banker wants a down payment. This is to demonstrate that you have a financial involvement and are not apt to walk away from the project before you're done. After all, in construction, until the home is completed, there really isn't much collateral there for the banker to recoup should you flake out! Often 20% is the minimum required but there are exceptions to this!
Q: Does my land have to be owned in full before the bank will loan me money?
A: The short answer here is "yes." There are exceptions to this as well, but most bankers want the land as the only collateral they'll have at first. Yes, and they WILL want first position on that land during the construction process. In some cases, the bank will count the land as part or most of the 20% + down payment requirement.
Q: Can I build the home myself without using a contractor?
A: Not likely. While other lenders may allow for this, it is extremely rare for a banker to go this route. He wants assurances that the home will be completed and completed on time and within budget. Owner builders do not have as good a record with this as licensed builders do. In fact, the banker may even want to approve the builder before he okays the loan.
Q: What if I run out of funds in the loan before the house is complete?
A: Find out up front what the bank's policy is on this. It's possible that additional money can be added but only if there is enough potential value in the finished product and you must be able to qualify for the bigger loan if money is added. Many times the bank will not provide additional money. You must be aware of the policy and know where additional money would come from should the need arise.
THE BANKER WANTS YOUR MORTGAGE AFTER YOU BUILD YOUR HOME
Most of the time the bank gives construction loans despite the hassle because they want your other business including the 30 year mortgage once the home is complete and you move in. While there are certain types of construction loans that automatically become mortgages at the end, often this isn't the case and the banker is eager to get you to "convert" at the end of the construction loan.
Knowledge about lending and home building or remodeling will put you way out in front and ensure a great experience. Visit http://www.DreamHomeCreation.com for many tips and tools to help you achieve all the results you're looking for and read more of Mel Inglima's writings.
(c) Copyright 2008 Mel Inglima & Allied Business Solutions
Article Source: http://EzineArticles.com/?expert=Mel_Inglima
Tampilkan postingan dengan label building a home. Tampilkan semua postingan
Tampilkan postingan dengan label building a home. Tampilkan semua postingan
Selasa, 06 Mei 2008
Buying A House In Cyprus - The 10 Steps You Need To Take by Elaine Berry
The tiny Mediterranean island of Cyprus has an appeal out of all proportion to its size. Especially for English speakers looking to buy an overseas property - for investment, retirement, holidays or holiday rental - Cyprus seems to come near the top for choice.
So what is the special appeal of buying a house in Cyprus? Many people find it combines ease of living with a special quality of mystery and beauty - and of course a gorgeous climate. Because the island underwent some decades of British rule, English is widely spoken, which makes it easy for English speakers to move to. At the same time, its almost unearthly beauty, combined with its history stretching back thousands of years and its connection with ancient myths and legends, provide a magnetic attraction for visitors.
But what's involved in buying a house in Cyprus? Well, it's not especially difficult, but there is a procedure you have to go through. (This process of course applies to the Republic of Cyprus, which excludes Northern Cyprus where the legalities are quite separate.)
So these are the main steps you need to take to purchase your property:
Every foreign national has to obtain approval from the government before buying a house in Cyprus - specifically from the Council of Ministers. This can take 8-14 months so you would be well advised to begin the process before you even start choosing your property.
Get a lawyer. It is not a good idea to try to do without and there are good bilingual lawyers in Cyprus - if in doubt, ask for a recommendation from expatriates in the area.
Once you have received your approval from the Council of Ministers, and have identified your property, you have to sign the preliminary contract, and post a holding deposit with a notary or with your lawyer. The deposit can be as little as 1 percent of the purchase price.
A secondary reservation deposit agreement will then be executed and the property will be taken off the market. As long as you stick to the agreement, it won't be put back on the market again.
The lawyer will then investigate the title through the District and Registry Office.
Meanwhile you need to obtain your financing. Probably the easiest way is to finance through a bank in Cyprus. Most banks are quite westernized and will accommodate US and UK mortgage clients. Alternatively you may wish to refinance your existing home, or in the case of a new build the developers may offer their own mortgage facilities. Some people of course want to sell up in their home country and move to Cyprus to live. If you are doing this, you are very likely to find that the proceeds of your home are more than enough to cover the cost of buying a house in Cyprus.
Once the lawyer's investigations are completed satisfactorily and you have your finance in place, the parties can move to the final contract stage. When this is signed by the parties it is filed with the Land Registry Office.
If one of the parties is a Cypriot, an application then has to be made to the Central Bank of Cyprus to approve the transfer of funds for the purchase of the property. If both parties are foreign nationals, this is not necessary.
If the property is not new, the title will be transferred to you and you are now the owner. If it's a new build, the title will not be transferred for three years, though you are fully protected since the final contract is filed with the District Land Registry.
Relax and enjoy your holiday or retirement home. You can get by with speaking English, but if you can manage to learn some modern Greek you will find your experienced greatly enriched.
Buying a house in Cyprus is easier for foreigners than in many countries and is highly worthwhile in terms of both enjoyment and profit. One word of warning - some people are tempted to try to do private deals without bothering with the legalities or getting a title deed. Don't even think about it. Not only could you get into trouble, but you could lose all your money as your property will be unsaleable. Be patient and stick to the law - it's well worth it.
Elaine Berry is the owner of the Bizwrite Real Estate Service. For a selection of simply the best properties in Cyprus, come and visit http://www.bizwrite.co.uk/realestate/overseasproperty.html - If you would like to know how to refinance your home in order to buy your Cyprus property, you'll find all the information at http://www.bizwrite.co.uk/realestate/lending.html
Article Source: http://EzineArticles.com/?expert=Elaine_Berry
So what is the special appeal of buying a house in Cyprus? Many people find it combines ease of living with a special quality of mystery and beauty - and of course a gorgeous climate. Because the island underwent some decades of British rule, English is widely spoken, which makes it easy for English speakers to move to. At the same time, its almost unearthly beauty, combined with its history stretching back thousands of years and its connection with ancient myths and legends, provide a magnetic attraction for visitors.
But what's involved in buying a house in Cyprus? Well, it's not especially difficult, but there is a procedure you have to go through. (This process of course applies to the Republic of Cyprus, which excludes Northern Cyprus where the legalities are quite separate.)
So these are the main steps you need to take to purchase your property:
Every foreign national has to obtain approval from the government before buying a house in Cyprus - specifically from the Council of Ministers. This can take 8-14 months so you would be well advised to begin the process before you even start choosing your property.
Get a lawyer. It is not a good idea to try to do without and there are good bilingual lawyers in Cyprus - if in doubt, ask for a recommendation from expatriates in the area.
Once you have received your approval from the Council of Ministers, and have identified your property, you have to sign the preliminary contract, and post a holding deposit with a notary or with your lawyer. The deposit can be as little as 1 percent of the purchase price.
A secondary reservation deposit agreement will then be executed and the property will be taken off the market. As long as you stick to the agreement, it won't be put back on the market again.
The lawyer will then investigate the title through the District and Registry Office.
Meanwhile you need to obtain your financing. Probably the easiest way is to finance through a bank in Cyprus. Most banks are quite westernized and will accommodate US and UK mortgage clients. Alternatively you may wish to refinance your existing home, or in the case of a new build the developers may offer their own mortgage facilities. Some people of course want to sell up in their home country and move to Cyprus to live. If you are doing this, you are very likely to find that the proceeds of your home are more than enough to cover the cost of buying a house in Cyprus.
Once the lawyer's investigations are completed satisfactorily and you have your finance in place, the parties can move to the final contract stage. When this is signed by the parties it is filed with the Land Registry Office.
If one of the parties is a Cypriot, an application then has to be made to the Central Bank of Cyprus to approve the transfer of funds for the purchase of the property. If both parties are foreign nationals, this is not necessary.
If the property is not new, the title will be transferred to you and you are now the owner. If it's a new build, the title will not be transferred for three years, though you are fully protected since the final contract is filed with the District Land Registry.
Relax and enjoy your holiday or retirement home. You can get by with speaking English, but if you can manage to learn some modern Greek you will find your experienced greatly enriched.
Buying a house in Cyprus is easier for foreigners than in many countries and is highly worthwhile in terms of both enjoyment and profit. One word of warning - some people are tempted to try to do private deals without bothering with the legalities or getting a title deed. Don't even think about it. Not only could you get into trouble, but you could lose all your money as your property will be unsaleable. Be patient and stick to the law - it's well worth it.
Elaine Berry is the owner of the Bizwrite Real Estate Service. For a selection of simply the best properties in Cyprus, come and visit http://www.bizwrite.co.uk/realestate/overseasproperty.html - If you would like to know how to refinance your home in order to buy your Cyprus property, you'll find all the information at http://www.bizwrite.co.uk/realestate/lending.html
Article Source: http://EzineArticles.com/?expert=Elaine_Berry
The Business Of Building Log Cabins by Romain Levesque
Log cabins, as the name suggests are cabins that are made out of a series of logs. Log cabins are houses with very simple designs that are particularly popular in the northern hemisphere. Cabins made of logs are commonly built in rural areas in many places throughout the world and they can also be found in urban areas in regions that are rich in timber.
The very first log cabins in the United States were built by the Swedes approximately around the year 1638 in the area that has come to be known as Wilmington, Delaware. Many people wrongly assumed that it was the first English settler that built these types of log homes but it was the Swedes instead.
The majority of the log cabins that were constructed in the 18th century in the United States are no longer around as many fell into disrepair. Most of these cabins were not built to withstand the elements and the test of time. They were not intended for permanent living. The ones that are still around have been turned into animal shelters, coops and other similar uses.
The strongest and most resilient cabins were made with siding. With this kind, the logs were attached together on the interior of the cabin as well as being covered with a number of different materials to make them strong. Some of the material used included wallpaper or plaster over lath.
There are older dwellings that are strewn throughout the Canadian Prairies and the American Midwest that are log cabins that were carefully constructed and covered with clapboards and assorted materials. To use an example, in Boise, Idaho there is a log cabin called the O'Farrell Cabin that was built in or around 1865 and it was covered with newspaper and over that was backed wallpaper. Log cabins are still as popular today as they ever were for those interested in building them.
Hi, I'm Romain Levesque Author of the article and owner of the website: http://www.details4life.com Feel free to stop by. You may republish this article as long as the resource box an live link remains. Cheers!!
Article Source: http://EzineArticles.com/?expert=Romain_Levesque
The very first log cabins in the United States were built by the Swedes approximately around the year 1638 in the area that has come to be known as Wilmington, Delaware. Many people wrongly assumed that it was the first English settler that built these types of log homes but it was the Swedes instead.
The majority of the log cabins that were constructed in the 18th century in the United States are no longer around as many fell into disrepair. Most of these cabins were not built to withstand the elements and the test of time. They were not intended for permanent living. The ones that are still around have been turned into animal shelters, coops and other similar uses.
The strongest and most resilient cabins were made with siding. With this kind, the logs were attached together on the interior of the cabin as well as being covered with a number of different materials to make them strong. Some of the material used included wallpaper or plaster over lath.
There are older dwellings that are strewn throughout the Canadian Prairies and the American Midwest that are log cabins that were carefully constructed and covered with clapboards and assorted materials. To use an example, in Boise, Idaho there is a log cabin called the O'Farrell Cabin that was built in or around 1865 and it was covered with newspaper and over that was backed wallpaper. Log cabins are still as popular today as they ever were for those interested in building them.
Hi, I'm Romain Levesque Author of the article and owner of the website: http://www.details4life.com Feel free to stop by. You may republish this article as long as the resource box an live link remains. Cheers!!
Article Source: http://EzineArticles.com/?expert=Romain_Levesque
Why Build Your Home Modular? by Mike Zenga
It seems like a question that is becoming more popular as more people hear success stories from choosing this form of new home construction. There are several reasons why modular homes are becoming more popular and increasingly taking over a larger segment of the new housing market. Here are the key reasons.
Higher quality - Modular homes are not manufactured homes or mobile homes. Modular homes are constructed with the exact same materials as site-built homes and by the same building code standards. However, because these homes are transported from the factory to your building site, extra measures to improve durability and strength are added. As a result, this makes modular homes actually superior to site-built homes in quality.
Less expensive - Modular homes are built in a factory setting away from the weather and in a setting where construction efficiently moves forward at a rapid pace. As a result, the time to build a modular home is less than half the time required to build a site-built home. This save tremendous time in construction costs for both the manufacturer and consumer. In addition, there is less waste and better use of materials. In the end, modular homes cost about 20 percent less than site-built.
Design savvy - You may think design options are limited for modular homes, but any design you want can be made by modular home building techniques. Any architectural plan can be accommodated by most manufacturers. Consumers expect a degree of design options and styles, and this has been the focus of the modular industry. Even home designers and architects alike have embraced modular technology.
Better investment - Combining high quality with less expensive costs clearly makes for a better home investment. In today's climate of rising foreclosures and looming recession, modular homes are making more sense than ever before.
Time efficient - In a rush for that new home? Want to cut your construction loan time in half and get out of the temporary rental? Then modular is the way to go. In one study, identically designed homes were built on site and in the modular factory. The end result demonstrated that it took 10 months from start to finish for a modular home (including design, financing and construction) to be completed, but 21 months for a site-built home. Time is of the essence!
"Greener" - With less waste and an ability to attend to greater recycling efforts from the factory setting, the modular home industry focuses on the environment to a much greater extent than site-built homes. In addition, architectural designs are continually creating better modular features to augment energy efficiency. Solar panels, reduced "non-livable' space, and better airflow patterns are just some recent features added that show this industry's attention to being "green".
There are several other reasons as well, but the above highlight the major aspects of how modular homes are rising above other options for new homes. The best part is that unless you see a modular home assembled, you would never be able to tell the difference from a site-built home. The fact is many of your neighbor's homes are likely modular, and you never even knew it.
Michael Zenga founded ZN Custom Building in 2002 which specializes in building Modular Housing in the Boston, MA area. Known as the Modular Building Specialist, Michael is an unabashed advocate for the industry and contributes related articles to many publications.
Article Source: http://EzineArticles.com/?expert=Mike_Zenga
Higher quality - Modular homes are not manufactured homes or mobile homes. Modular homes are constructed with the exact same materials as site-built homes and by the same building code standards. However, because these homes are transported from the factory to your building site, extra measures to improve durability and strength are added. As a result, this makes modular homes actually superior to site-built homes in quality.
Less expensive - Modular homes are built in a factory setting away from the weather and in a setting where construction efficiently moves forward at a rapid pace. As a result, the time to build a modular home is less than half the time required to build a site-built home. This save tremendous time in construction costs for both the manufacturer and consumer. In addition, there is less waste and better use of materials. In the end, modular homes cost about 20 percent less than site-built.
Design savvy - You may think design options are limited for modular homes, but any design you want can be made by modular home building techniques. Any architectural plan can be accommodated by most manufacturers. Consumers expect a degree of design options and styles, and this has been the focus of the modular industry. Even home designers and architects alike have embraced modular technology.
Better investment - Combining high quality with less expensive costs clearly makes for a better home investment. In today's climate of rising foreclosures and looming recession, modular homes are making more sense than ever before.
Time efficient - In a rush for that new home? Want to cut your construction loan time in half and get out of the temporary rental? Then modular is the way to go. In one study, identically designed homes were built on site and in the modular factory. The end result demonstrated that it took 10 months from start to finish for a modular home (including design, financing and construction) to be completed, but 21 months for a site-built home. Time is of the essence!
"Greener" - With less waste and an ability to attend to greater recycling efforts from the factory setting, the modular home industry focuses on the environment to a much greater extent than site-built homes. In addition, architectural designs are continually creating better modular features to augment energy efficiency. Solar panels, reduced "non-livable' space, and better airflow patterns are just some recent features added that show this industry's attention to being "green".
There are several other reasons as well, but the above highlight the major aspects of how modular homes are rising above other options for new homes. The best part is that unless you see a modular home assembled, you would never be able to tell the difference from a site-built home. The fact is many of your neighbor's homes are likely modular, and you never even knew it.
Michael Zenga founded ZN Custom Building in 2002 which specializes in building Modular Housing in the Boston, MA area. Known as the Modular Building Specialist, Michael is an unabashed advocate for the industry and contributes related articles to many publications.
Article Source: http://EzineArticles.com/?expert=Mike_Zenga
Langganan:
Postingan (Atom)