An Introduction to New Home Construction Loans


Building a house is a landmark event in any person’s life. The decision to build a house comes after a long analysis of the sources of funds to facilitate the process. Luckily, there are a lot of lending companies that offer loans targeted at new home construction. New home construction loans and stated income construction loans are the two types of loans that are offered to people in the process of constructing a new home. Both types of loans offer funding for new home construction, but the difference lies in the way in which they can be obtained.

The first and very crucial step in obtaining a home construction loan is choosing a lender.  The important point to note is that the lender must be kept informed of anything and everything that has been planned about the home construction.

Advantage of Hiring New Home Construction Builders

There are many options for homeowners when it comes to constructing the house of their dreams. There are several companies that build and design homes based on the choice of homeowners. When building new homes, they provide you the basic plans and build the same home in different patterns and with the modifications proposed by you. You do not have to take an active part in the construction of your home. You will enjoy quality construction that can be achieved with the help of professionals with ease. Building your new home can be an exciting and enjoyable experience. The styles of the house, which area should be selected, the quality of the neighborhood are the common criteria for a home owner. But selecting the building contractor for your new home is one of the most important tasks.

When a Saugeen Shores Construction, Kincardine Home Construction or Walkerton Home Construction is hired, the homeowner can get exactly what they want and invest in a home that will bring returns of quality and enjoyment. If you have purchased our own area of land to construct your home, a builder will be able to fit the home into the surroundings and the desired placement that you want. You also get to work with the builder and crew, having control over every detail from the material being used to equipments that should be used for your new home.

In this way you can get the best quality products for your new home construction. A builder can provide and may suggest other special modifications to make life easier for the individual in their new home. Your architect can be the quarterback of your team. He can be your advocate. He will suggest various designs for your new house before construction begins. There will be the builder, his contractors and subcontractors, and even an interior designer and landscape architect. You have to make sure everything is in accordance with your needs and requirements. Hiring an architect gives you someone on your team who understands the process, listens to exactly what you want, and looks out for your interests. He will be capable of constructing the type of house you want, and can build that particular kind of house keeping your need and budget in mind!


New home construction builders offer all technical experience and expertise their clients need. They know how to build the house in the most aesthetically pleasing manner. You get a wider view by enjoying excellent benefits offered by a home construction company. The issues such as the size of rooms, quality of construction, and cost of construction, to name a few, are effectively dealt with. A home construction builder considers the intangible aspects by providing appropriate requirement for the future. With a home construction company, you can actually witness your ideas come to life. You can provide all the relevant inputs to the designers and they will come up with a viable, unique design.

What you need to know about Home Construction Price

house_under_constructionUndoubtedly before you embark on any home construction project whether it be home remodeling for an existing house, new home construction, kitchen remodeling or room addition, you would wisely research how pricing construction and home construction rate work. Assessing and pricing construction projects are not too complicated to understand and are definitely not quantum mechanics science. As an experienced general contractor in Los Angeles I know how my clients think and what would make them happy, they basically want the best of the best in terms of quality and materials for as low as possible. Sometimes I can almost hear them think what they don’t dare ask – “do it for free “. Well unfortunately and as the old saying goes, nothing is free in life. Knowing that home construction price is the main factor in the decision making process of most people; I tend to explain how “prices construction” works and how I actually calculate estimations.

In general the factors a home contractor takes into account are: materials, labor, equipment, licenses and permits, office expenses, time and scope of work. All these elements must be considered very carefully and thoroughly before the final building cost is presented to the client. Any home construction rate may also vary according to the quality of the materials and the subcontractor’s credentials, as well as the area and state where the project is done because of differences in permits costs and charges. To avoid over-charging or under-charging the experienced home contractor also studies and reviews past projects and current costs of materials to come up with an accurate answer to the “prices construction” question, as it is often asked by my clients.

To elaborate a little on the cost of materials let us start with the fact that on any single home construction or home remodeling project, builders use more then one kind of material, whether it be just tile installation, counter top replacement, bath room remodeling or even painting a house, the materials and equipment necessary are many and the accumulative cost of all of them can be very expensive for the contractor, thus making the home construction price high in the eyes of the home owner. Many a times the contractor would need to rent heavy machinery and equipment for the job and this too can bring the home construction rate higher. The cost of specific materials can change according to the quality, the strength and brands. For instance tile varies in price tremendously, depending on the kind and brand, therefore a bathroom remodeling can change considerably from one project to anther, while wood price for framing is relatively the same. Of course it is not the place or the scope of this information to detail the prices of materials, but rather to give an idea of what is involved in pricing construction jobs. Enercomindustries is a website that gives information about home construction designs.

Professional labor, as mentioned before is another significant aspect in the equation of home construction rate a general contractor will place in the estimate. Crews of trained, experienced and licensed professionals have earned their expertise with a lot of sweat and years of hard work in the field and therefore legitimately deserve a fair salary for the high-end job they deliver. When it comes to home construction and home remodeling, precision and craftsmanship is crucial and should not be under estimated by home owners because the difference between an expert and an amateur is huge.

Furthermore, cutting corners and hiring non professionalsis going to cost more in the long run and needless to say that many of them are unlicensed which makes it also illegal. A good home contractor will chose a craftsman who has the know-how and over of brand named materials if he needs to keep the budget low in the pricing construction process.

Home construction is regulated by the CSLB and city municipalities and almost every home remodeling requires some type of permit from the city. It is something that a builder will calculate and add to the home construction price, unless it is agreed with the home owner that expenses for permits are coveredby the client.

And last but not least, like any other business, a general contractor must have an office and other over head expenses that add a small percentage to the over all home construction rate estimation given to the home owner.

All of the above is meant to sum-up in very general terms the basics of construction price estimation, and is the first article in a series of articles on the subject of pricing construction or as home owners tend to say “prices construction”.