Tag Archives: Construction

Construction Loan Rates: The Costs Of Financing Construction

 

Building a property from the beginning may sound tempting to most people because it provides you with the opportunity to design your own home. It also gives you the opportunity to posses your own property without paying high amounts. However, financing the construction of a property by means of a construction loan is not for free and the interest rates on these loans are not identical to the rates charged on mortgage loans.Why Is The Rate So Important?Just like with mortgage loans, since construction loans deal with high loan amounts, the interest rate is extremely important. The rate applied to the loan amount along the loan’s repayment program will give you the overall cost of the loan. That figure can tell you exactly how much more money you are spending on the property and how much money you would be saving if you had the funds to pay it off without resorting to a loan or line of credit.Therefore, when shopping for this type of loan, though the rest of the loan terms are important too, you should focus on the APR if you want to compare costs to decide which lender and loan best suit your needs and budget. The APR will provide you with a thorough idea of the costs of the loan including any additional fees or charges to the interest rate.A Greater Risk, A Higher RateCompared to mortgage loans, construction loans imply a higher risk. The reason is fairly simple: since the property guaranteeing the loan is not yet finished, its value is not enough to provide security to the loan. Therefore, the lender has to cover the risk of default and non conclusion of the construction project by charging a higher interest rate.However, truth is that the property will advance along time till it is fully finished. That is why most lenders offer a descending interest rate that varies as the property’s percentage of construction increases. Moreover, once the property is completed, the loan can be converted into a regular home mortgage loan with more advantageous terms and a longer repayment schedule (construction loans need to be repaid in a year or two depending on the magnitude of the project).Credit Score, Repayment Capacity and External FactorsThere are mainly two variables that affect the loan’s interest rate and are connected with the borrower: Credit score and repayment capacity (income). There are also external factors like the market situation, reference rates, major political events, etc. that can also affect the interest rate charged on construction loans. However, the most important variables and the only ones relatively under your control are your credit score and income.As usual a lower credit score implies a higher rate. There are also higher difficulties in terms of approval for those with bad credit, especially if they cannot provide a down payment or co-signer to aid the approval process. But, as with any other financial product, you should shop around for a lender and ask for loan quotes to compare what the different financial institutions have to offer you. It is the only way to get a good deal and you can do so, even if you have bad credit.----

 
Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgage Loan for Bad Credit please visit her website at http://www.quickbadcreditloans.com/

Construction Loan Rates: The Costs Of Financing Construction

 

Building a property from the beginning may sound tempting to most people because it provides you with the opportunity to design your own home. It also gives you the opportunity to posses your own property without paying high amounts. However, financing the construction of a property by means of a construction loan is not for free and the interest rates on these loans are not identical to the rates charged on mortgage loans.Why Is The Rate So Important?Just like with mortgage loans, since construction loans deal with high loan amounts, the interest rate is extremely important. The rate applied to the loan amount along the loan’s repayment program will give you the overall cost of the loan. That figure can tell you exactly how much more money you are spending on the property and how much money you would be saving if you had the funds to pay it off without resorting to a loan or line of credit.Therefore, when shopping for this type of loan, though the rest of the loan terms are important too, you should focus on the APR if you want to compare costs to decide which lender and loan best suit your needs and budget. The APR will provide you with a thorough idea of the costs of the loan including any additional fees or charges to the interest rate.A Greater Risk, A Higher RateCompared to mortgage loans, construction loans imply a higher risk. The reason is fairly simple: since the property guaranteeing the loan is not yet finished, its value is not enough to provide security to the loan. Therefore, the lender has to cover the risk of default and non conclusion of the construction project by charging a higher interest rate.However, truth is that the property will advance along time till it is fully finished. That is why most lenders offer a descending interest rate that varies as the property’s percentage of construction increases. Moreover, once the property is completed, the loan can be converted into a regular home mortgage loan with more advantageous terms and a longer repayment schedule (construction loans need to be repaid in a year or two depending on the magnitude of the project).Credit Score, Repayment Capacity and External FactorsThere are mainly two variables that affect the loan’s interest rate and are connected with the borrower: Credit score and repayment capacity (income). There are also external factors like the market situation, reference rates, major political events, etc. that can also affect the interest rate charged on construction loans. However, the most important variables and the only ones relatively under your control are your credit score and income.As usual a lower credit score implies a higher rate. There are also higher difficulties in terms of approval for those with bad credit, especially if they cannot provide a down payment or co-signer to aid the approval process. But, as with any other financial product, you should shop around for a lender and ask for loan quotes to compare what the different financial institutions have to offer you. It is the only way to get a good deal and you can do so, even if you have bad credit.----

 
Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgage Loan for Bad Credit please visit her website at http://www.quickbadcreditloans.com/

Post Construction Cleaning

This task usually falls on a separate contractor who does this sort of work. Post construction cleaning is a specialized process that requires the right training and equipment. There are several steps to a thorough post construction cleanup.

The First Step

The client must confirm with the main contactor that every part of the work, including work by any subcontractors, has been completed before he calls in the cleaning company. Otherwise, last minute work or changes could ruin the cleanup, requiring that it be done again.

Furniture

If the construction took place while the office or home was in use, the furniture will almost certainly have a thin coating of dust or other materials. One of the first things the cleanup crew will do is clean the furniture. They will then cover it so it is not affected by the rest of the cleanup.

Ceilings

The process of doing Post construction cleanup should start at the top and work its way down. That way, dust falling from areas being cleaned will not drop onto areas that were already cleaned. This is why, once the furniture is cleaned and covered, the next step is to clean the ceiling. This is usually done using a light wash to keep the dust from spreading.

Walls and Windows

After removing any pictures, mirrors or other decoration, the walls and baseboards will also be washed. At the same time, the windows will also be cleaned. The cleaning of the windows has to be done with great care to avoid scratching them with the abrasive dust that might be covering them.

Kitchens and bathrooms

The kitchens and bathrooms have to be given an extremely thorough cleaning. The kitchen in particular has to be immaculate to avoid the possibility of dust and other materials thrown off during the construction getting into food. Each of the appliances will have to be individually cleaned.

Floors

The floor is always saved for last. Of all the surfaces in any room, the one that gets the most debris and damage during the construction process is the floor. This is why the floor will vacuumed and washed at least twice.

The cleanup after construction is about more than just appearances. While the area remains dirty, people working or living in these areas are at an increased risk of various health problems, such as allergic reactions or asthma attacks. A professional cleanup protects the health of everyone in the home or building.

 

John smith is author of this article. He writes about real estate news. For further details Janitorial services and Commercial Carpet Cleaning Please visit the website.