Finding an Experienced Construction Loan Broker

If you are planning to do any sort of construction work, whether you’re attempting to build your dream home, or you represent a business chain looking to put up a new business location, it would be wise to consult with a construction loan broker. Construction loan brokers are personal loan brokers who have had specialized training in the building process, building codes and laws, etc. In order to find the best construction loan broker for you, here’s some advice in what to look for.

The Basics

As with any type of loan broker, it is important to have solid communication, so that the broker is capable of understanding what you want and can convey those wants to the various lending agencies, as well as capable of informing you of all the options coming from those various lending agencies. Always search for somebody with a solid track record and history in construction loans, and who has good connections with lending agencies that deal in construction loans.

The Particulars for a Construction Loan Broker

It is absolutely crucial that a good construction loan broker understands the building industry. This includes strong knowledge of building materials, ways of cutting costs, and potential building shortcuts that don’t break laws or codes. Having a solid knowledge in all of these areas can more easily put the lender at ease and makes it much more likely to get the best deal for your construction loan.

Additionally, there are many common but complicated construction type loans and issue out there, and it is important that the construction loan broker knows every facet of these common factors and options available, based on the type of land deal that the client wishes to make. For example, the exact particulars and requirements of a land development lending agreement are going to differ from an acquisition and development loan.

Also key, in a business where everything comes with a big dollar value, is that a construction loan broker needs to know how to find the hard money lenders. If you are having trouble getting the money you need from traditional lenders, hard money lenders will supply the more high risk loan agreements, though without a broker to negotiate, you are looking at a drastically higher interest rate than regular loans.

Finding an experienced and knowledgeable construction loan broker is crucial for a good loan deal. If you are at a loss for where to find the best broker, try going to the Chamber of Commerce and various civic clubs and ask around for the brokers that the lenders most trust and accept.