What is a Construction Mortgage?

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In order to save money and design the home of their dreams, many people choose to build their home from the ground up. When building a home, one has to consider how they will finance the big project. One loan option many people choose is the Construction sewer tie in southeastern, ma Mortgage.

A Construction Mortgage is a loan that is used to finance the building of a home. The money is normally given to the borrower in set amounts as each stage of the construction process is completed. Most construction mortgages involve paying the interest only during the construction period with full repayment required after the owner obtains a certificate of occupancy.

Before a lender approves a construction sewer tie in southeastern, ma  mortgage, they have to know all that will be involved in building the home. This includes the blueprint, materials, labor, other costs associated with the construction, and the time it will take to completely build the home. Construction mortgages are normally variable-rate loans which are priced at according to the prime rate. The home builder, lender, and contractor will set the schedule for withdrawal of funds for each stage of the construction process. Interest is applied on the amount of money withdrawn. Having the money released before each stage is complete is often seen as economically beneficial and helps prevent future funding problems.

Many homeowners will often choose to acquire a construction-to-permanent financing plan where the construction loan is switched to a mortgage loan after the certificate of occupancy is given out. You can often get a higher construction loan rate and then get a better mortgage rate when you switch to traditional mortgage financing. It is important to remember that with a variable rate, repayments can fluctuate each month. Generally, construction mortgage rates are quoted on a prime plus basis.

Like a traditional mortgage, how much you can borrow will depend on your financial status such as your credit rating and income. Lending can often range from 75 - 95 percent of the building cost. Some lenders provide a separate loan for the land. Funding for building costs is released when the home building plan has been approved. The best benefit of a construction mortgage is that it is usually cheaper than getting a mortgage for an existing home. The cost of building your own home is much less than buying a new house. As well, new self-built homes are worth more the day the home is finished so it makes for a good investment. When considering a construction mortgage, it is important to comparison shop from a number of different lenders. Many experts recommend consulting with a construction mortgage specialist.

From the size of the rooms and where the rooms are located, building your own home provides you with many more choices than if you were going to buy an existing home. A construction mortgage may be the perfect solution if you are looking to build your dream home at a much less expensive cost. When considering this type of mortgage, it is important to understand how it works, the cost to build, and the repayment terms and conditions. With the right knowledge, it will not be long before you will be living in your dream home.




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2010 Survival Guide For Contractors

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sewer tie in southeastern, ma - In business there is one rule that absolutely cannot be violated. That simple rule is "Do Not Run out of Money." A violation of that simple rule is like getting a "RED Card" in soccer; you are out of the game with no chance to re-enter and play again. So what can you do about that? As an owner, now is the time to review all monthly recurring costs. I was speaking to a friend of mine who is a fellow business owner and he got out his current AMEX statement and highlighted all the charges that were absolutely not a necessity.

Better Expenditures Review - I cannot tell you how many stories of employee theft we have seen in the past 4-5 years. In articles we have read, the annual amount has been quoted at $600 million on the low side just for the construction sewer tie in southeastern, ma  industry. I was a CFO for a company and my own controller cashed stolen paychecks to the tune of $50,000. You know what he said when we caught him? "I deserve it because the owner made $500,000 and that isn't right, because it did not leave enough for bonuses for us." As individuals cope with foreclosures, mounting credit card bills or a spouse's job loss, they may turn to your assets to survive. It is a small percentage of people that will resort to this but you can protect yourself. We just helped a client prosecute an individual who misappropriated almost $150,000 over a six month period.

Better Collections - Build into your proposals incentives for prompt or early payments. Review your aging regularly, not just when your bank balance starts to dwindle. Assign this to one person as their primary responsibility. We would also suggest that it may make sense to outsource this task. Another crazy suggestion is to take credit cards. Yes, there is a fee associated with doing this, but the older a receivable gets the smaller the chance of collection. How many balances in your aging right now are either uncollectible or have been sent to an attorney for collection efforts? Offer a discount and accept payment by credit cards, the owner will like it because he will get bonus points for free travel or gift certificates.

Benefits - When was the last time you took competitive bids on your health insurance? What if you could lower your monthly cost by $200-400 per employee? You need to get going on this now. Large companies change often. A large hospital is getting another provider which will be their third in the last four years. It is very important that you do this annually. Yes, I know that you like and trust your current insurance broker. You bid jobs competitively every day, why shouldn't your carriers.

Technology - If your software solutions are more than 4 or 5 years old, it may be time to look for another solution. Don't buy just because it is newer; buy because it will yield a very attractive Return on your Investment. We have been involved in some situations where the ROI was as little as 4 months.




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Home Construction Design Software - My Virtual Home 1.8.3

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One of the more established home design software in the market is My Virtual Home. Although it may have made its name in Australia, there is no doubt that this program will also be of much use in the shores of the United States. The newest edition of the program is version 1.8.3 and this time around, even more tools and features are offered, all of which aim to help the user in planning, designing, and ultimately, in communicating one's ideas to the contractors sewer tie in southeastern, ma and other professionals in this field.

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It is quite necessary to note that a good number of software engineers that worked on the development of My Virtual Home cut their teeth in the world of gaming software design. This translates to home design software that is filled with keyboard commands and intuitive controls that are more commonly found in all sorts of PC games.

In fact, it is even an option to customize one's own character so as to make the virtual tour of the newly designed home a lot more realistic. In terms of graphics and animation, the gaming mindset of the developers of this program becomes even more evident. Cutting edge graphics and animation allow users to even switch on/off lights, open/close doors and cabinets, or even turn the air-conditioning unit on or off.

It's in the Details

One of the biggest advantages of My Virtual Home is that it pays much attention to details. For instance, users can actually upload their own photos and images and hang them on the walls as art. One can choose from the hundreds of different light fixtures available and even make adjustments on their light intensity to see what effect it will have on the room. Not too many programs in the market can offer this type of detailed functionality.

Program Outputs

There is no question about the file importing capabilities of My Virtual Home - a wide variety of image file formats and types can be easily imported to the program without much fuss. However, some may criticize the exporting capabilities of this program as being somewhat limited.

Nevertheless, whatever shortcomings it may have in the exporting department, My Virtual Home is able to make up for them when it comes to both server hosting and printing settings capabilities. This program allows design professionals and contractors to access and view their customer's design plans from practically anywhere. Again, this happens to be a feature that is unique to this impressive home design software.



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Be the General Contractor - But What is the GC Responsible For?

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Wearing your own General Contractor's sewer tie in southeastern, ma hat can be a big savings for a homeowner builder in a building or remodeling project. But, can you do that? What do you need to know? How do you manage all the processes and people?

These questions prompt one of my most popular questions when people consider handling their own projects.

Question: What is the General Contractor responsible for?

Answer: In a word ... everything! The General Contractor sewer tie in southeastern, ma (also called a GC) is the builder in charge of the building or remodeling project. When someone refers to their builder, they usually mean the GC. The subcontractors are also builders but they handle only their trade.

A to Z and Beginning to End

The GC manages the project from beginning to end ... from getting the house plans approved and the building permits issued, to getting bids or quotes and selecting the subcontractors and managing them.

If it is your house or project, the only real power you have over your GC is hiring and firing. On the plus side, a licensed and bonded GC will usually guarantee the job and cover most problems throughout construction and for a minimum of one year after the home's completion.

For some people, this is the way they want it. They just don't want to be involved and they want someone else to carry this liability.

Enter the Home Building Coach

For others, it's just not acceptable. They would rather have more control even though having more control means bearing a little more of the responsibility. These folks often hire a home building coach to supply the contacts and experience they lack. For them, this is a highly effective solution.

The Coach is your "right hand man" bringing to the table all the things you lack. With a coach at your side, you not only have the power, but you now have the benefit of knowledge and years of experience in your corner. It's like suddenly you know exactly what you're doing.

And, isn't it a little easier to be responsible when you know what you're doing?




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