Ways to Finance Commercial Construction Project
The Mechanism Behind Construction Loans
Taking into consideration the strictness behind credit and income requirements, it becomes increasingly crucial to find a lender for your new build.
In order to secure a construction loan, you may experience a more stringent policy in terms of credit scores and income guidelines, than you would for a home loan. So, it’s rather important to go through an evaluation as a borrower.
Apart from other options, a construction-to-permanent loan suits the needs of many as in the case of solid construction deadlines it proves to be reliable and efficient. If you have a contractor who has a history of completing each task on time, taking upon the option of construction-to-permanent loans is preferred. The mechanism runs smoothly where the lender pays the builder once the work is completed.
Finding Land to Build Your Commercial Building
If you plan on building a commercial building from the ground up, it’s best to find lots that are in established areas. In other situations, you may not have to start from scratch. Whether you’re looking to start a completely new commercial building or just need a retail renovation, keep in mind that location is everything.
Design-Build for New Construction
The decision made by you to hire an architect will largely depend on the area where you choose to materialize your commercial property. In commercial communities that are planned, there are contracts that are signed with a number of local builders. Hiring an architect, however, may be helpful if you have a large number of preferences and specifications. A completed drawing by your architect can help you achieve the permit to build as well.
Is There a Need for Title Insurance for a New Construction?
In order to avoid disputes in terms of legal transfers, getting title insurance shall be your safest bet. If a purchase is made in a tract of land in a suburb that is developing, then the property is most likely to have been covered legally. To get more insight on whether or not you need title insurance, you may need a real estate attorney who can guide you along the way.
Get a New Commerical Construction Inspection
After your commercial building has been built, it is still highly recommended to undergo the procedure of professional inspections. It’s always best to be safe than sorry. An inspection will ensure that the entire process goes smoother.
In a nutshell, be sure to find an agent that keeps your financing in check, have your credit in order so you can successfully finance your construction venture. In order to avoid any delays, get documents and plans pre-approved as certain fines may increase your cost. Be sure to research skilled builders that will provide value. Financing your project can be a challenging process, but strategic planning and an organized outline can help you in the long run. At Headwaters Construction Inc., we understand that commercial construction is not an easy process. Don’t worry, our team is here to make the process go smoother. If you’re interested in our commercial construction services, contact our office today.