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What You Need To Know About Illinois Construction Loans For the Home

What You Need To Know About Illinois Construction Loans For the Home

As the recession winds to a close and consumer confidence begins to grow, Illinois construction loans are increasing in volume, says construction loan experts across the country. This is a sure indicator that prosperity is just around the corner. The recession did nothing to squelch thoughts of dream homes or renovations, but it did put it off for a time, until consumers had more money to put down on a loan and until some had improved their credit.

The key when you are ready to build that dream home, first home or remodel your existing home is to find a residential loan broker who can help you find the perfect loan for you. Most people think they should head straight to the bank when they\'re ready to build a home, but that leads to disappointment for many, especially those with questionable credit issues in their background. A quality loan company will have hundreds of loan partners to choose from, not just in Illinois, but all over the country, enabling them to find one that will meet your needs.

Construction loans work differently than a traditional loan does, giving you usually one year to pay the money back or roll it over into a mortgage. Instead of getting one big fat check for the amount of the house, the money is given out in stages, as the different parts of construction are finished, allowing you to pay the contractors as you go. To save on closing costs, most people like to get a loan that will convert into a mortgage after the construction is complete and a certificate of occupancy is issued to the homeowner.

This means only one application and one closing is needed, saving time for the homeowner. One reason you might not do this is if you are expecting to get a better APR on your mortgage, so you decide to wait until the house is complete to apply for your actual mortgage.

Whether you decide to build new or remodel your existing home, it can be a very trying experience getting a home construction loan. Having the right loan company on your side can make all the difference.