Is a construction-to-permanent loan serviced by a portfolio lender also advantageous for the builder?
Absolutely. Once construction begins, the project will require monetary draws to keep the process moving along. The builder needs to pay suppliers and laborers and finance the work-in-progress on a continuous basis. To do that, the builder can contact one person directly at the bank rather than dialing an 800 number and getting the run-around. This is a key benefit of working with a portfolio lender — you gain a financial team member, and your builder can count on calling the bank for a draw and receiving the check, often within 24 to 48 hours. Also, when the home is complete, the builder knows that the owner’s occupancy of the home will not be further delayed by the process of obtaining that permanent mortgage — the transition from construction loan to permanent mortgage is seamless. What qualities should an executive seek in a portfolio lender? It’s important to partner with a lender that has relationships in the construction industry. Your builder will recommend which suppliers are
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