Mortgage Company Flushing, Michigan

Have you ever worked with a mortgage company in Flushing, Michigan before? Did you feel pressured into trying to pursue a certain kind of loan, even though you weren’t really that comfortable with the terms? The reason that happened was simple – the mortgage company wanted to make the biggest commission possible. At Gem Home Loans, however, we’re not like that. We don’t play those kinds of games, because we want to set our clients up for success, not failure.

What to Expect From a Construction Loan?

Another way we’re different is that we handle construction loans. These can be extremely complex. A lot of mortgage companies don’t mess with them as a result. But we’ll be ready to help, whether you’re looking to perform some major renovations on your home, or you’re building a new home from the ground up.

Why are construction loans so involved? One big reason is that a lot of people who try to get one don’t have a whole lot in the way of collateral. It takes more time and effort to match someone with the best construction loan as a result. But, like just about everything else, nothing worth having comes without effort. You might just find that getting this type of loan will wind up being one of the best decisions you’ll ever make.

You might be surprised how many options you’ll have when it comes to construction loans. Here are just some of them you might want to keep in mind.

• Construction-only – This kind of loan will require you to either refinance it, or pay it off completely, after the building of the home is complete. You might need to re-qualify as different phases of the project are finished, and you may have to pay closing costs multiple times.
• Home renovation loans – These are for people who are planning huge projects, such as adding a bedroom or a bathroom, or completely renovating their kitchen. Home renovation loans could also work if you want to buy a new house that you’re planning to completely renovate from top to bottom. This will typically entail receiving portions of your loan at different renovation stages.
• Construction-to-permanent loan – This converts from a regular construction loan to a regular mortgage loan once the house is built.

Construction loans usually come with fluctuating interest rates. They’ll go up and down with the prime lending rate. Also, you’ll probably pay a higher rate than you would with a conventional loan. Again, it can be hard to find one, since so many mortgage companies stay away from them.

Qualifying for a Construction Loan

Don’t let that last paragraph scare you off – we’re not trying to do that at all. We just want you to know what to expect once you decide you want to pursue a construction loan. We also want to make sure you’re aware that qualifying can be more involved than it is with a traditional loan.

If, for example, you’re building from the ground up, you’ll more than likely have to provide some kind of proof that the home will actually be built. You’ll also have to fill out more documentation, because you’ll have to show your finances are stable enough to be able to repay the loan. You’ll need a pretty high credit score, and you might also have to pay a down payment of up to 35 percent.

Yes, getting a construction loan can be a challenge – but Gem Home Loans is a mortgage company in Flushing, Michigan that will work to help your dreams come true. Call (248) 780-1030 or use our online form to learn more.