The choosing of your builder spec loans lender should be something you carefully consider, not a decision that can make hastily because it will negatively impact your business for years to come. Not siding with the right lender slows down the loan process, and your competition is getting the jump on property and sales while you are wiring endlessly for a closing.
Consider these important factors from ConstructionSpecLoans.com before you decide to team up with any builder spec loans lender.
- The builder spec loans lender should have their own underwriter in house. Outside or third-party underwriters tend to slow the entire closing process to a crawl, making it hard for you to get your money and develop your business. The builder spec loans lender should be able to close on the loan consistently within 30 days of receiving final contracts.
- One of the biggest mistakes that many businesses make is not getting all their concerns addressed before they start the loan process. Now is the time to start asking all those important questions that are going to affect the bottom line of your business down the road. Your builder spec loans lender should be completely transparent at the start, giving you precise answers to every question you have. If you don’t like the answers, then now is the time to skip over to another lender before any time was wasted.
- Make sure that the builder spec loans lender you want to work with offers flexible draw schedules and has easy builder approvals. Not only is time money, you want to be able to get access to that cash in a pinch where certain situations arise during the normal operations of your business.
- The importance of working with a single loan originator can not be understated. When you are dealing with a single entity throughout the loan process, it helps that they start to develop the skills to identify and service your needs faster. Each time you apply for a loan, this individual gets to know more about you and how your business runs. Not only will this help them to address your concerns faster, the entire application process moves along with less input from you in the future as the originator can draw on past dealings to close the next loan.
By now you should have carefully considered these important factors before you decided to team up with any builder spec loans lender.