Almost everyone dreams of having a home they can call their own one day. However, for many, this is an elusive dream. With the rising cost of living, even basic things like health insurance have become a luxury that only the rich can afford. However, all is not lost. If you would like to build a house but you are financially strapped, the first thing that would come to mind is to get a loan from the bank. What if your credit score does not allow it? Don’t worry; there are many house building companies that can provide you with affordable financing.
Builder financing can either be provided directly by the building company or by a lender whom the building company has a relationship with.
Pros of builder financing
- It is much easier to obtain financing in this way. Banks and other institutional lenders can take you round in circles and in the end still deny you the loan. You can save yourself a lot of time and stress by getting financing from or through your builder.
- The financing might be much more affordable than taking a loan from the bank. The payment terms may be friendlier and the interest rates lower. This makes repayment easier. However, always compare with the rates offered by banks and other lending institutions (if this is an option for you) just to be sure.
- The building company may provide you with several perks if you also choose to use their financing.
Note that you do not have to use builder financing if you prefer another option. No building company worth its salt can force you to use their financing. They can only try to convince you; but if you do not want to, you do not have to. However, note that you will not be able to enjoy the perks the builder offers clients who use their financing. Such perks include help with the closing costs, among other benefits.
The decision on whether to use builder financing or not is entirely up to you. Be wise and compare the rates offered by different building companies as well as institutional lenders. You could save thousands of dollars by shopping around for the best home financing deals.
However, be careful as there are some unscrupulous building companies that may try to dupe unsuspecting and desperate people who just want to build homes. Do some research on the building company and the lender they use just to be sure who you are dealing with. Ask around for people who have worked with the Gold Coast Company you wish to work with and use the internet as well. Check out some independent review sites to see if you can get any useful information about them. Be sure to read the contract and if there is anything you do not understand, seek clarification. All in all, builder financing can be very helpful as long as you get a good building company to work with.