How Long Does It Take to Process a Construction Loan?
Lenders such as Mortgage House issue an array of loan products including the construction loan. Owner-builders and investors who seek to finance a construction project can apply for this product. Keep in mind that it works differently than mortgages for single-family homes. It has more steps and the applicant must turn in additional documentation that details the project.
Therefore, it takes longer to process a construction loan than a mortgage.
On average, it takes a few weeks longer. Loan specialists require extra time to evaluate the project, market, and the applicant’s finances. Since the project will be built on vacant land, the lender must ensure that the pieces to complete it exist. A construction project can come to a halt for several reasons. For example, the applicant might not obtain the proper permits. Weather plays a role and so does the quality of the construction crew.
Mortgage House works with owner-builders and investors who want to build a new home or multi-unit structure. Our loan specialists have access to proprietary tools that evaluate the application and the project. Once they have a clear view of the project and market, they can put together a packet of potential loan terms. Our team works through the processing stage efficiently.
Once you become a Mortgage House client, you receive access to our other loan products including our business loan.
Process a Construction Loan Conclusion
It takes longer to process a construction loan than a mortgage for a few reasons. Nonetheless, owner-builders and investors can receive guidance from our Mortgage House loan specialists to keep the process moving efficiently. Contact our team today.