Workshops.  If outbuildings are banned then you can pretty much count this out.  Unless, of course, you are willing to sacrifice some garage area.  Even then, you want to make sure, upfront, that you would not be violating the deed restriction.

Recreational.  Many communities are not permitting the parking of boats, campers or other forms of recreational vehicles on the lawn. 

If the future value of your home is of major importance to you,  you will want to verify that you believe these things are headed in the right direction.

Do you believe that local government is doing things necessary to create interest for people to desire living in this area in the future?

How do the unemployment ratings in this area stack up to the national average?  Are businesses expected to move into this area to create more job opportunities?

The existence or future development of minor parks is almost always a plus. 

The proximity to recreational attractions can be a very attractive attribute for a piece of property. 

The most important part of buying the property you are dreaming of is having the money to do it.  Folks today have gotten smart and verify the money is available for what they want to do before they go out looking.  This is often referred to as getting prequalified.  The most important part of getting prequalified is judging 2 things.  Affordability and likelihood of approval.

There are many costs to be considered.  Here are some of the most common ones.  You may be responsible for any one or more of these fees.  The easiest way to figure out which one is costing you the least is your bottom line payment.  Lesser costs mean a lower bottom line and that means a lower payment.

There are many costs to be considered.  Here are some of the most common ones.  You may be responsible for any one or more of these fees.  The easiest way to figure out which one is costing you the least is your bottom line payment.  Lesser costs mean a lower bottom line and that means a lower payment.

So now we understand that not every bank will have interest in what you want to do.  That raises the question, how do I know what bank suits me?  First, you have to understand what your needs are.  That comes by knowing what lending philosophy you fit.  The easiest place to start is at the highest level.  Are you building a new home, rehabilitating an existing one or purchasing an existing one?

Out of the 3 major choices, this option has the most potential upsides and downsides.  The reason is simple.  This is the most risky form of loan a bank can offer.  So how do you know if you will have the upside or the downside?  Thankfully, that has an easy answer as well; If the bank is has experienced specialists devoted to construction loans then expect the upside, conversely, if the bank does not have a team of specialists devoted only to this style of lending then prepare for the downside.

One time close

It is especially nice to find a lender that has committed talented construction specialists to working with owners that want to build or contract their own home.  Having the right construction consultant at the banking level will make all the difference in retaining the savings that come by cutting out the expensive GC.  This is a fantastic way of getting the home you want at a price that is typically well below market average.  This creates instant equity and is quite a way to go.

Most lenders require the use of a builder they can approve of to fund your project.  If you are considering being and owner-builder or owner-contractor, you need to make absolutely sure that your lender specializes in working with you.  Even if you intend to hire a GC, you need to verify their acceptance requirements.  Some banks have limitations on the number of GCs they accept.  Yours may not be on that list.  There is also the likely possibility that a lender will find any reason they can to decline your builder during the builder screening process.  Know what lender you are working with before it is too late.  If they have a high builder declination rate then you may be fighting an uphill battle that has nothing to do with your credit-worthiness.

According to a survey of homeowners that completed the construction process, one of their biggest regrets was not working with a banking consultant that could properly explain construction loan guidelines.  When asked why, the most common answer amongst them was that the underwriting guidelines dictated so much of when the loan closed, how it closed, how it funded, how the contractor had to do his job and so on.  They thought that rates and costs were the biggest thing to be concerned with but they were wrong.

Determining who you work with to obtain your financing will make all the difference.  How much you save and how easy things go will depend vastly on the experience of the consultant with whom you work.  Ultimately, the choice is up to you.  You are the only one that can decide with whom you feel most comfortable.  Here

These consultants typically have the least amount of expertise in the construction banking field.  They have a tendency to focus on easy money involved in mortgage refinances and purchases.  When given the opportunity, most brokers will happily accept the overwhelming challenge of assisting a customer like you so long as they think they stand a chance to profit.

Also known as a bank originator, these consultants often have the same level of experience as a mortgage broker when it comes to construction.  Really good banks will employ consultants that have the experience required to properly assist their customers.

Direct correspondence.  Undoubtedly, the most beneficial reason to use a bank directly, instead of a broker, is communication.  Having direct communication helps get underwriters answers to their questions faster than having to channel things through a middle man.  Also, lenders have a tendency to feel more comfortable lending money at reasonable rates and terms if they have a one-on-one relationship with the customer.

Lack of options.  Without question, the most unfortunate thing about trying to work with a bank directly is the lack of options.  Every bank has one construction loan option that follows its own lending philosophy.  Unfortunately, if you do not appear to meet their lending criteria for their only option, they will often tell you that you can not get a construction loan.  That is not true.  That simply means you should check with more banks.  Preferably, check with a broker or construction banking consultant; both should have more than one option available so you don’t have to go out searching yourself.

Also known as a broker or bank’s construction specialist, these consultants are extremely experienced in construction.  These representatives will know of the best options available to you and help you turn what most think is a very complex process into a very simple one.

Options.  Dependent on the firm you choose, construction banking consultants can have many products.  This is very advantageous in pursuing the best rates, costs and overall process.  Some consulting service firms have access to hundreds of product options whereas some only have one.  Be sure to ask your advisor if they have one or more options available to you.  Examples of firms with such experienced consultants include; M&T Bank, www.constructionbanking.com and United Midwest Savings Bank.

No purchase loans.  True construction banking consultants specialize only in loans that deal with construction.  While they can help you buy a lot to build on or an existing home in need of upgrades or repairs, they usually will not help with the purchase of a home in “move-in” condition.  You will want to contact a mortgage broker consultant or banker consultant.