Tips about New Construction Home Loans

New construction home loans are not the same as your typical, everyday home loans. They tend to have different requirements and adhere to different rules. If you wish to know more about new home construction loans, read on. You just might find an easier way to own your dream home.

The Definition of New Construction Home Loans

When you ask for this type of loan, you’re asking the mortgage provider to give you the money you need to build your own home.

The Basis of Approval

First and foremost, your mortgage provider would require a detailed explanation as well as accounting on the estimated costs for your home-building project. They’d want to know how much experience you have in the field of construction, how much you estimate you’re going to spend on your house and how it’s going to look in the end.

Only after you’ve passed the initial screening, they ask you to submit the usual documents that would enlighten them about your earning capabilities and credit reputation.

The Types of Construction Loans

There are different types of construction loans.

A construction to permanent loan is a two-in-one loan ideal for most people since it would only require you to submit documents and pay closing costs once. This type of loan is a combination of a construction loan and permanent financing. Rather than applying for a construction loan initially, then following it up with a typical home loan, an approved CTP loan can help you save money and time.

A remodeler loan is a second mortgage that’s designed to provide financing for a home improvement or remodeling project.

A bridge loan allows you to use the equity on your present home as down payment for your new home.

Lastly, a lot/land loan gives you the resources to buy land instead of building a home.

Home Remodeling Is Home Improvement

More and more people are changing how they live in their homes. For one, if they have the resources, they would remodel their home. Home improvement addition is a booming consumer insight. More and more construction companies are emerging through this need. Most homes would remodel their gardens by adding landscape, some would remodel their garage, and for others, the kitchen and bathroom.

The receiving area, the dining area, the bedroom, the kitchen, and the bathroom are places in your house that is always stayed in. There have been many revolutionary ideas in improving the aesthetics of the receiving area, the dining area, and the bedroom. You can move furniture and fixtures in any part of the room without the need of contactors or designers. All you need is creativity to spice the idea and work it in your room. But how about the kitchen and the bathroom? You must think twice.

In the bathroom, you can change the setting of your toiletries, change the curtain window or change the shower curtain. But can you alter the position of your tub or your toilet seat? Then you’re bored.

In the kitchen, you can switch the plates and the cups of the kitchen cabinet and place it at your counter top. But can you put the kitchen cabinet anywhere else – imagine it if it is built-in? Majority of the kitchen furniture is bulky and almost everything is fixed. Now you’re even bored.

As you continue of thinking how to manage the set up of your bathroom and kitchen, suddenly the light bulb fired, you now have the solution: call a construction company with expertise in home improvement.

There are some full-service, licensed and insured construction company that specializes in residential construction that is listed in your area or you can look it up on the internet. The greatness of residential construction is the craftsmanship in building, remodeling, and repair works.

In a research done by Renovation Experts, Residential Design & Build magazine, Qualified Remodeler and Kitchen & Bath Design News magazine among Americans that have kitchen remodeled, the contemporary theme ranked as the top preference. Per se, a home remodel is home improvement. The idea of doing it is to transform the room into something that you desire.

RECREATING YOUR KITCHEN — There are too many cases of plain or unattractive kitchens. The best way not to be trapped with this kind of scenario — think of modern kitchens. Modern kitchens favor functionality and urbanity. If your kitchen looks great but still doesn’t function, the money you’ve spent for kitchen remodel is wasted. In remodeling your kitchen: make space; think of kitchen cabinet remodel; build an island, a countertop or a breakfast bar; consider using durable materials and materials that wont harm your children; allow lighting and ventilation for your kitchen. If you want to follow kitchen trends, you can liven it with

RECREATING YOUR BATHROOM – When remodeling a bathroom, think of ventilation and the water system as two of your factors. You can totally change the look of your bathroom depending on your style, but still coherent with the theme you have on your entire house. There are many creative ideas if you want to remodel. Some clients wanted to have the feel of a spa in their bathroom. It can be done. But the cost may extend. Think of quality and durability and leisure. Indeed, some of us read something while using the lavatory, so it depends on you if you want to add a built-in mini-rack for reads. Or if you want to spice up the room, you can add appliances in it like towel warmer, a waterproof built-in TV, heated floors, LED lights for walls or ceilings, or a spa bath.

So, before you contact the residential construction company, plan, plan, plan on bathroom remodel and kitchen remodel. If you are residing in LA Country, Orange County and Ventura County in California, please visit this site on residential construction.

The Home Improvement Protection Act

In an effort to catch dishonest contractors and put an end to their fraudulent actions, Pennsylvania has enacted the Home Improvement Consumer Protection Act. As of July 1, 2009, the Act requires all contractors who perform $5,000 or more in home improvements annually to register with the Attorney General’s office. Registered contractors must now carry at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage.

Registration with the Attorney General only costs $51, but the new law also affects remodelers in other ways. For instance, due to new requirements in the consumer-protection laws, construction contracts in Pennsylvania must be longer and become more detailed. This has a downside to contractors as a 17-page contract can appear mighty intimidating to a homeowner. The additional contract pages were added to include supplementary and updated clauses in Pennsylvania law. For instance, up to now, contractors were required to provide a single-page right-to-rescind clause in their contract. The new law identifies specific right-to-rescind language that has to appear in 10-point bold type directly above the signature line. The arbitration clause isn’t enforceable if this right-to-rescind notice doesn’t appear in 10-point bold type.

The new act also requires a long list of disclosures to appear in every contract – such as the start and finish date, names and addresses of subs, insurance coverage, and even a phone number for the Pennsylvania Bureau of Consumer Protection. Without these disclosures, a construction contract in Pennsylvania is null and void. Even worse, if a home improvement contractor doesn’t comply with the Home Improvement Protection Act, and a dispute occurs, the property owner has the right to recover thee times actual damages as well as attorney’s fees.

Home improvement contractors who don’t comply with the act should be prepared to work for free should something go wrong; the owner will have them over a barrel. And the fines are tough: if the work is for over $2,000, a violation can become a third degree felony.

The Pennsylvania Home Improvement Protection Act may end up misleading remodeling clients who often choose their remodeling contractor based on bid price. Contractors who don’t carry insurance are unlikely to register with the state. These contractors will have less overhead and will appear attractive to bargain-hunting homeowners as they can easily be the low bidder on many home improvement jobs. Registered contractors are required to carry liability and property damage insurance, increasing the overhead costs they must add to their bids.

Pennsylvania is unique in its stringent homeowner protection requirements on remodelers and contractors. For the contractor it represents a new burden: not only does he have to carry at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage, he now has to hand a potential customer a 17-page contract that may be a deal breaker – even if it is required by Pennsylvania law. And for this contract he has to hire a lawyer well-versed in the changes in Pennsylvania contract law. The new law has made Pennsylvania lawyers very happy.