Welcome back! Over the last few days, we’ve been going over how construction loans work, and how to qualify for one. We went over how to apply and what to bring with you, but now let’s talk about the right lender for you.
Like any other kind of business, banks do specialize. In your case, you’ll want to work with a lender that has experience in the construction industry. They’ll be the only ones able to offer you the know-how, flexibility, and customer service you’ll need in order for your project to hit the ground running. While that’s the good news, here’s the bad news. In most cases, the response period when it comes to construction loans can take weeks, even months. Don’t worry about it, that’s the normal pace of business. Better yet, take this time while you’re waiting to contact other banks. You’ll be able to gain an accurate idea of your company’s market value.
So, when you’re approved, should you immediately start building? Not necessarily. Remember that the fact that you’ve been approved for a loan means that you have value in the eyes of the lender. You might take that information and shop around in order to see if you can gain better terms for your loan. Most importantly, choose a lender you feel comfortable with since you’ll be talking with them a lot during the duration of your project.