Searches for construction and rehab lenders can be done with just a few mouse clicks
Chicago, IL (PRWEB) March 31, 2014
The winter of 2013 -14 will go down in record books as one of the harshest in decades. As the weather turns warm and the ground thaws, builders begin shopping around for construction and rehab lenders to finance their upcoming residential construction and rehab projects. Construction financing is very different and much more complicated than the mortgage loans that most consumers are familiar with. Unlike a Conventional 30 year fixed rate mortgage that is the same at most lenders, construction and rehab loans can vary greatly from one lender to the next and are very short term (only 6 to 12 months). Each project also presents different risks to the borrower and lender depending on the size, location, and time table of the construction project. Since each home project is unique, matching up the right construction financing terms to the specific needs of the project is critical to successful completion.
Most borrowers are familiar with how a mortgage works - prospective borrowers fill out a mortgage application and the process gets started. During the process, the lender checks the borrower's credit, income, employment, and assets to verify he can afford the payments. The lender also appraises the property to verify the home has sufficient value to serve as collateral for the loan. If the home appraises out and the borrower's income and credit is adequate, the loan is approved, closed, and the borrowers start making monthly payments.
The same process happens with construction and rehab loans, except that the property doesn't have enough value to serve as collateral because it hasn't been built yet or is need of rehabilitation. The collateral on a construction or rehab loan is the future value of the home when it is completed. If there is a problem during construction and the project is not completed, then there isn't sufficient collateral to cover the loan. Consequently, construction and rehab lenders have an additional layer of risk to consider - construction risk. How lenders manage construction risk is reflected in the terms of their loans. Matching the right lender to the different requirements of each unique construction project is key to successful construction and rehab lending.
Because successful construction and rehab financing is dependent on matching up the right lender with the right project, Mortgage Brokers and Mortgage Bankers are using the database at http://www.MortgageElements.com to find and research the different construction and rehab programs offered by different lenders. Mortgage Elements has one of the mortgage industry's largest databases of Wholesale and Correspondent mortgage lenders including dozens of lenders offering construction and rehab loans throughout the 50 states. Searches for construction and rehab lenders can be done with just a few mouse clicks and is one of the most popular criteria used by visitors to the Mortgage Elements website.
About Mortgage Elements Inc.
Mortgage Elements Inc. is an internet marketing company that provides marketing, database, search, and consulting solutions for the mortgage industry through its website http://www.MortgageElements.com. The company uses a unique website design optimized for touch screen technology and use on mobile devices, desktop, and laptop computers. Mortgage Elements is a B2B company for the mortgage industry and not a lender.