Chris Esposito's Articles - Credit-Voitures.com

Chris Esposito's Articles

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Who Should Be an Owner Builder in Today's Economy Owner builder construction loans are designed for people who wish to build their new house without having to hire a general contractor. Unfortunately, there is a lot of confusion about the role of the owner builder, leading many people to take on the responsibility for the wrong reasons - and with improper planning. If you want to be an owner builder, you should consider these points first. Income Documentation for Self-Employed Borrowers of Owner Builder Construction Loans Owner builder construction loans have essentially eliminated stated income programs. For self-employed borrowers, who keep their documented income as low as possible for tax purposes, this policy change can cause real problems. Therefore, if you're self-employed and wish to build your home as an owner builder, you need to know beforehand the procedures for calculating and documenting your income. Ten Questions You Should Ask About Your Owner Builder Construction Loan Owner builder construction loans have not been immune to all of the changes that have occurred over the last couple of years in the mortgage industry. With all of the turbulence, a borrower must ask more questions now than ever before. So, if you want to be an owner builder, here is a list of ten questions you need to ask about your construction loan. Owner Builder Credit Scores and the Effect On Financing Fees Owner builder construction loans have become harder to find as the mortgage industry has all but done away with these highly specialized products. The owner builder programs that remain strong are using the industry titan, Fannie Mae, for rates and pricing. How does this affect you? Your loan will have higher financing fees (discount points) wrapped into it if your credit score is not strong. The Fall of the Owner Builder Construction Loan Owner builder construction loans have not been immune from the pains within the mortgage industry over the last couple of years. In fact, there have recently been some major changes within the world of construction financing that are worth examining. It's time to take stock as an owner builder, and fully assess your current options for the new realities of today's market. What Should an Owner Builder Expect to Pay in Closing Costs for His Loan? When looking to build your home as an owner builder, you will undoubtedly want to compare loan programs and closing costs. If you want an owner builder construction loan, you will need to make sure you are comparing apples to apples when looking at overall loan fees. A specialized owner builder loan will have more fees than simpler mortgages, but it should be worth it in the long run. Multiple Appraisals for a Construction Loan? The Details an Owner Builder Needs to Know If you want a mortgage, you need a real estate appraisal. If you want to be an owner builder and need a construction loan, you will need two appraisals wrapped into one. An owner builder construction loan will require an appraisal prior to construction and one follow-up appraisal upon completion. Knowing the details of this system will help you get the construction loan you want. Home Improvement - Owner Builder Style Many families who fix up their homes save money by doing some of the labor themselves. In many cases, it would be a waste to hire a general contractor for simple home improvements that you can do yourself. Therefore, people often get this DIY version of home improvement confused with full scale owner builder construction. Knowing the difference will make finding the right financing much easier. Understanding Real Estate Zoning Before You Buy Your Land to Build Your House as An Owner Builder If you want to build your home with a general contractor or as an owner builder, you are almost certainly going to need financing in the form of a construction loan or an owner builder construction loan. So, before you ever commit to that dream plot of land, you better first understand the zoning implications - not just for your county's building permits but also for your owner builder loan terms. The Inner Workings of Interest Rates for Owner Builder Loans A good owner builder construction loan will have only one closing to cover the land purchase, construction phase, and conversion to your permanent financing. Therefore, the owner builder loan will have two sets of interest rates: one while you build, and one rate for when you move into your new home. Every owner builder should understand the inner workings of these rates when planning to build. Build Your Personal Nest Egg in Today's Financial Climate With Owner Builder Construction Owner builder construction is a creative way to build instant equity in your primary residence, which will jump start a family's nest egg even in today's financial climate. The decline of the housing industry leaves the doors wide open for an owner builder to take advantage of decreased costs and save tens of thousands of dollars in sweat equity in a new home. How to Co-Sign for a Loan Without Hurting Yourself If you are considering co-signing for a loan to help out a close friend or family member, the best advice is to walk away. Don't do it. It could cause real harm to your credit score and to your qualification numbers when you need a mortgage yourself. But, if you must be a co-signor, then make sure you follow these simple rules to ensure it won't hurt you in the long run. Are Mortgage Insurance Companies Affecting Your Owner Builder Construction Loan? An owner builder construction loan, just like any construction loan, will not have any mortgage insurance payments while you build. So, why is it then that mortgage insurance companies are having a huge impact on your ability as an owner builder to get a loan? The answer lies within the banks' rules for converting you to permanent financing once the home is built. Having Your Loan Denied Due to Your Credit - Despite Having a Good Credit Score Everyone knows that you need to have a good credit score to get the best rates and terms on any loan, especially a mortgage. But, many people don't realize that their credit report can cause them to be denied financing, despite having a good credit score. It's more important than ever to understand your entire credit history - not just your credit score itself. Five Creative Ways to Secure an Owner Builder Loan Without a Down Payment at Closing Owner builder construction loans, like the rest of the mortgage industry, have had to tighten their belts to survive in today's lending climate. For borrowers who wish to build their own homes, this translates into tougher guidelines to secure financing. However, there are still four creative ways that an owner builder has available to close on a construction loan without a down payment. Owner Builder Construction Loans Giving Boost to Borrowers' Credit Scores Around the Country Owner builder construction loans have found a way to actually increase borrowers' credit scores while they build. This boost during construction is a drastic turnabout from the typical phenomenon of decreased credit ratings for individuals building a home. In a time of falling credit score averages around the nation, this shift from owner builder financing is a welcomed change. The Nine Basic Steps of the Owner Builder Construction Loan Owner builder construction gives you the chance to build your own home and earn a lot of instant sweat equity in the process. However, the loan process is more involved and time consuming than a simple purchase or refinance loan. If you are considering being an owner builder, understanding these nine basic steps will make the project financing and planning much smoother. Fannie Mae and Freddie Mac: The Good, Bad and Ugly for Owner Builder Loans How will the government's bailout of Fannie Mae and Freddie Mac affect your ability to get an owner builder construction loan? Good owner builder loans are construction-to-permanent loans that let you wrap your permanent mortgage into the financing with the construction phase. This means that the Fannie and Freddie bailout will create some good and bad changes for you, the owner builder. 20 Do's and Don'ts of Owner Builder Construction Loans If you are considering being an owner builder and managing the construction project without hiring a general contractor when you build your own home, then you need to go into the process as prepared as possible. These twenty tips will prove invaluable when shopping for and completing your owner builder construction loan. How to Choose the Right Closing Agent for Your Owner Builder Loan Owner builder loans are more complicated than your standard refinance or purchase loans. Therefore, you will need to be more selective when hiring your closing agent. If you don't know how to choose the right closing agent for your owner builder construction loan, your project could be delayed significantly. The 8 Benefits of Modular Construction that Every Owner Builder Needs to Know Owner builder construction is growing in popularity at a tremendous pace around the country as more and more people look to save money by building their own home. If you are considering being an owner builder to build your next house, then you need to know these 8 benefits of modular construction before you begin. The Four Attributes of a Good Owner Builder - Your Construction Loan and Project Depends on Them Owner builder construction can save you 15% to 35% during the construction of your own home by cutting the costs of hiring a general contractor. However, if you don't take the planning and construction seriously, then you could end up losing a lot of money and your dream home. Therefore, you need to have these four attributes to be a successful owner builder. Owner Builder Loans - Everything You Need to Know About Credit Scores Owner builder construction loans have not been immune from all of the recent changes in the mortgage industry. It's vital that you understand the most recent credit score guidelines that apply to most owner builder loan programs today. If you know these tips about your credit scores, it will make it that much easier to understand some of the nuances of your construction loan. Understanding the Difference Between a Simple Purchase Loan and an Owner Builder Construction Loan An owner builder must understand that his construction loan will be different than a simple purchase or refinance mortgage. Understanding these differences allows you to plan for a very profitable project. However, an owner builder who does not account for the nuances of an owner builder construction loan as compared to a simpler mortgage is going to set himself up for failure from the start. Five Questions Every Owner Builder Needs to Ask About His Loan Owner builder construction loans are complicated compared to simple purchase loans or refinance mortgages. Look for financing that has the features that will help you be successful. Managing the construction of your new home as an owner builder is no small job. Make sure your construction loan is set up to help you succeed. Always ask these five questions before settling on your financing. How to Botch a Home Loan Application: An Example from Owner Builder Construction Loans Home loan pre-approvals are supposed to be quick and easy, yet people constantly shoot themselves in the foot and cost themselves a lot of time and money. Learn from these examples from owner builder construction loans and apply the lessons to your mortgage loan application. How Do Soft Markets Affect Your Construction Loan Rates and Terms? Owner builder construction, or any custom home construction loan for that matter, is currently battling its way through a bloodied mortgage industry. If you want to build, whether as an owner builder or with a hired general contractor, you need to know how the industry's list of soft markets and declining values will affect your construction loan terms. Building a New Home? Should an Owner Builder Buy a Home Kit to Save Money? Home kits or material packages can be great tools to help owner builders construct a home, because they bundle the materials together for you and send it as one package. There is a myth, though, that these home kits are always a way to save money. But, an owner builder needs to take the time to break down the numbers. A Common Owner Builder Construction Mistake: Losing Sight of the Big Picture People building a custom home, whether acting as an owner builder or hiring a general contractor, often have to be reminded of one simple, vital point: look at the big picture. Owner builders who lose sight of the big picture are the ones who end up using cheap materials, low quality labor, and low quality financing. When this happens, it is the owner builder who loses both time and money. Owner Builders Beware: The Dangers of Construction Cost Estimators Cost Estimators are evil. Learn the real truth behind budget estimators, and why they only help owner builders to run out of money, ruin their project, and raise their blood pressure. If you are considering being an owner builder to build your new home, you need to know the real dangers of improper budgeting with cost estimators before it's too late. Owner Builders: 43 Interview Questions You Need to Ask When Choosing the Right Sub-Contractors Owner builders oversee the construction of their new homes, cutting out the costs of a general contractor. To do this, though, owner builders hire and manage their own sub-contractors. Choosing the right subs will make the difference between a successful owner builder construction project and a disaster. Owner builders need to ask these 43 questions when choosing their sub-contractors. Owner Builder Lessons for the Project Management Industry Owner builder residential construction projects offer a terrific point of comparison from which businesses can learn volumes about effective (or ineffective) project management strategies and techniques. Owner builders make many basic mistakes. Learn from them to refresh yourself on some project management basics. A Lesson in Time for Owner Builder Loans Owner builders need to understand the owner builder loan and planning timeline before they make an offer on the land they want. Do these things in the right order, and you'll be well prepared for success. Owner builders who jump blindly into the process will set themselves up for disaster. The Truth About Owner Builder Construction Budgeting Owner builder construction budgeting is filled with potential pitfalls that can leave you in huge financial holes before ever finishing your home - if you are not prepared. On the other hand, by budgeting properly, owner builders will not only have accurate numbers with which to start building, but will have already lined up all of the people to do the actual construction. Owner Builder Construction Loans: The Secret to Hiring Good Sub-Contractors Owner builder construction loans are for people who want to eliminate the costs of hiring a builder for their new home. Owner builders therefore manage the sub-contractors themselves. When hiring a sub-contractor, you will need a detailed contract to cover the specifics of the job. Owner builders should ensure their contracts include these basic items - or risk spending too much time and money. Building Permits: What Every Owner Builder Needs to Know Immediately Your local building department is dedicated to reviewing house plans and issuing permits to build. If you are hiring a general contractor, he or she should be intimately familiar with the local codes and procedures. But, if you are an owner builder, you need to learn all you can from your local permit office as soon as possible. It could change your mind about the land and blueprints you want. The Secret Costs of Choosing Blueprints for Your New Home When building a new custom home, either as an owner builder or with a general contractor, you'll need to decide on the right home plans. Do you buy stock blueprints or have them custom designed? Choosing incorrectly can lead to unforeseen construction costs that will blow your budget. How Owner Builders Should Find Land to Build On - The Right Way Are you considering building a new home? You'll need to find the right piece of land. But, you probably don't buy land every day. Whether you're hiring a builder, or being an owner builder, finding land is the first step of what may be the biggest purchase of your life. There are many things to consider, and doing it incorrectly will spell disaster for your future home. The Truth About Owner Builder Loan Closing Costs After owner builders work their way through the maze of loan qualifying, it will be time to close on the loan. This is essentially where you sign a huge stack of documents that you will never read, nor understand if you try. Basically, this is where the owner builder loan promises to give you the money, and you promise to repay it. Sounds simple, but it takes a hundred pages to accomplish it. Owner Builder Construction Loans: The Three Imperatives Owner Builder construction is a great way to build instant equity into your new home by eliminating the costs of a general contractor. However, owner builder construction loans can be complicated and difficult to find. Here are the three owner builder loan features that you absolutely must have to be a successful owner builder. What You Need to Know About How Construction Loans Really Work A construction loan has some similarities to a regular purchase or refinance mortgage. You will still be judged on your income, credit, savings and monthly debts. However, with a construction-to-permanent loan, there are a additional factors that lenders consider - you need to know them if you want to build a new home. Building a Home? You'll Need to Know Your Insurance Requirements When building a new home, you will need insurance to protect yourself while the home is under construction. If you're hiring a general contractor, he should have insurance in place to cover the bulk of the requirements. However, if you are going to be an owner builder and oversee the construction yourself, you will need to get your own insurance coverage to protect the home and yourself. Ten Common Mistakes to Avoid with Your Credit How many of these ten common credit mistakes do you make? How many of them are currently keeping your credit score lower than it should be? Knowing the answers to these questions could boost your credit score and provide opportunities for better financing terms. Nine Key Credit Factors that Could be Damaging Your Credit Score Right Now Do you know the main credit factors that affect your FICO credit score? If you don't know these nine key factors, you could be unintentionally damaging your credit score and chances at better financing terms. Today's Credit Scoring Basics and the Effects on Construction Financing At one time, not too long ago, there was no such thing as a numeric credit score. Your credit report either showed that you paid on time or you didn't, and that was that. But, times have changed. Today, it's more vital than ever to understand the basics of the FICO credit scoring system and how it will affect your qualifications for construction financing. The Construction Loan Timeline and the Number One Mistake Most People Make The number one mistake, hands down, that people make when building a new home is not allowing enough time to get through the process. Building a custom home, and obtaining a loan to do so, is not as simple as getting a mortgage to buy an existing home. You CANNOT do it all in 30 days. So, before you sign a contract to buy a piece of land, take a moment to learn how to avoid potential disaster. The Construction Appraisal - What You Need to Know Before Your Loan Gets Denied If you are building a new home, the appraisal is just as important to your construction loan qualification as your income or credit scores - maybe even more important. If you don't understand the appraisal process for a construction loan, you run the very real risk of wasting a lot of time and money. The Ultimate DIY Project: Owner Builder Construction If you enjoy working around the home and doing various DIY projects, then maybe you're ready for the Holy Grail of DIY - building your own home as an owner-builder. By eliminating the costs of a general contractor's overhead, you will save tens of thousands of dollars on your next home. And it's not as labor intensive as you might think. Who Are the People Involved in Your Construction Loan Process? Whether you are going to be an Owner Builder or hire a General Contractor, there are several people that will be involved with your loan process in addition to the loan officer with whom you choose to work. Knowing the roles of each of these people will make your loan process flow smoothly and quickly. Are You Pre-Qualified or Pre-Approved? Knowing the Difference Can Save You a Lot of Time and Money Nearly everyone who has wanted to buy or build a home has been told that they need to obtain a "pre-qualification" or a "pre-approval" before making an offer on a property. The problem is that these terms are used interchangeably. This is a big mistake, and understanding the difference could save you a lot of time and money. Shopping for an Owner Builder Construction Loan: The Features You Need to Look For Before Building It is hard to find construction financing when you want to build your own home as an owner-builder. When looking for the loan that is right for your scenario, make sure you see the big picture and look for the right features in your loan. Otherwise, suffer the consequences. What is an Owner-Builder, Really? You've probably already heard the term owner-builder if you've been involved in residential construction in any way. But, there is a lot of misinformation out there about owner-builders. Before deciding if it's right for you, step back a moment and get a firm grasp of what an owner-builder really does.

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