PITI the Fool - New Construction Home Loan

New Construction Home Loan - Hannibal Leads The Team

Hannibal always knew what to say to get me and the rest of the team pumped up and ready to go for ANY mission we were sent on. Even Face - that no good trash talkin' foo - even he got pumped for a mission with the Man! But now its my turn, and your mission is to succeed with a new construction home loan. I'll tell you where to begin, where to direct your efforts and where to find victory with a new construction home loan! Now get up foo! This is gonna be a battle royal!

Getting started

Firstly, there will be two types of people looking for a new construction home loan:

New home buyers looking to build their own home from scratch. Yeah, you're real granola and there ain't no way tract housing is gonna hold the wind child.
Current home owners who have enough equity to put an addition on their current home.

The differences between these two applicant types are incredible - and your new construction home loans will be very different if you have equity and if you are just starting - but the efforts and the way you use your loan will be extreme similar. There is only one language your new home loan will understand, and thats the language of PAIN!

Using your new construction home loan

The most important aspect of any new construction home loan besides affordability is direction. Where are you planning on putting all this money and how much of it will actually be wasted? For the home builder with their first home loan there is no option - the money needs to go exclusively to your home. If it don't then you'z the biggest sucka chump ever to come across the T! But current home owners using their equity to finance a new construction home loan do have options, they can spend their loans however they please and the decisions gotta be targeted:

Make the essential constructions first - if your roof leaks, fix your roof. Ain't no use buildin' no pilates studio if water be drippin on your chi.
Access only an amount you can afford, not necessarily what you can qualify for. Lenders offering 125% loans against eh value of your home are not your friends - they are around to make money, to make money off you and they do a great job.
Stick to your guns - once the fighting begins and you know your objective, keep working for that objective alone.

Distractions are killer when you apply for a new construction home loan. So keep your target in sight, keep your head clear and don;t be no sucka chump spendin' equity like a foo!