Be Wary of a Builder-Driven Choice of Construction Lender
Many of you that are contemplating building a custom home will likely end up borrowing money from a construction lender to finance the construction. The construction draws that the lender provides generally fuel the construction. Some builders may attempt to steer you to a builder-friendly lender that may be more lenient in relation to approving the builder’s requested draws. If this occurs you may end up in a precarious position if the disbursement of money significantly exceeds the stage of construction, thus jeopardizing the completion of the home. To minimize the chance of this happening, consider selecting your construction lender independent of the builder’s recommendation.