How do I get a loan to build my home?

Instead of buying an existing house for your next home, have you considered building? There can be many advantages to owning a brand-new house, such as higher energy efficiency, lower repair costs, and the opportunity to customize many features. The first step is determining how to get a loan to build.

Starting the Process of a New Construction Loan
The initial steps of obtaining a construction loan are similar to buying an existing house:

Meet with a lender to get pre-approved for the amount you can afford, and don’t forget about all the options, you can eve get loans for bad credit.
Develop your wish list, including locations and features.
Visit new home communities and builders in your selected price range. An experienced real estate agent can be a valuable resource.
Your next financing steps will depend on whether you have decided to buy a production or custom home.

Buying Within a Development
If you buy from a builder who is constructing multiple houses within a specific development, a practice called production building, the financing process will be very similar to buying an existing house. In most cases, the builder can arrange financing for you—but make sure it is a competitive offering.

The main difference from other loans is that you apply for your loan when you sign the contract with the builder, but you don’t lock in the loan terms until the property is complete.

Buying a Custom-Built Home
If you’re having a house built on your own lot with your own design, you have many more financing options, but there are more steps involved. Unless you are paying in cash, you will need to arrange for a construction loan. These are not as widely available as regular home loans, so you may have to shop around.

Some lenders provide a one-step loan that is interest only while the house is being built and then converts to a mortgage once construction is finished. The advantage is that you will have to pay closing costs only once. Some lenders, however, prefer a less risky two-step process. This requires you to take out an interest-only loan for construction and then refinance into a regular mortgage when the house is completed. The short-term interest-only loan is usually at a prime-plus rate, while the later portion reflects regular mortgage interest rates.

Strong Credit Requirements
Construction loans are considered higher risk. You will need strong credit and a down payment of 20% to 25%. The specific down payment requirement is determined by the cost of the land and planned construction. If you already own the land, you can use it as equity for your construction loan.

Your lender will check the credit and credentials of your builder as well. Drawdowns on the funds are usually at prescribed completion points, requiring that inspectors approve the progress.

Other Funding Sources for New Construction
If you have equity in your current home, your lender may offer a bridge loan to use while your new home is being built and you’re waiting for your current one to sell. This can be an expensive, somewhat risky situation since you’re planning on your home to sell, but it can help you get through a timing squeeze.

Another approach is to sell your current home and rent a temporary home while waiting for your new one to be built. While this requires you to move twice, it frees up the equity in your home to use toward your new property.

There are a few extra steps involved in financing the building of a home. When you consider all the pros and cons, you may find that the advantages of a brand-new home outweigh the complexities. Happy building!

How to Choose a Bit Coin Wallet

There is a vast array of choices when it comes to how to select a Bit coin wallet, or software programs. In most cases the type of wallet you want is directly proportioned to your own needs. The more technical the bells and whistles, then they usually give an added sense of security and privacy. The first thing you should decide on is the platform at which you want to use, or the type of software you want. 

Desktop wallets are only for the use of your desktop pc and can only be used at one access point. The downfall to this is its lack of mobility, and, however are very susceptible to viruses and hackers. This is a huge reason to look into other types of bit coin wallets. Desktop bit coin wallets are all too often left to openness of any hacker to drop a virus into your pc.

Cloud wallets are also very accessible anywhere and are used by many people that are new to the aspects of cryptocurrency wallets. It seems to be the choice for most, and usually can be accessed by pc and mobile devices. These to have the sensitivity to possible bumps into your cellular security and require constant observation to assure security of finances. It’s better to keep a close eye on your money, but not to the extent of paranoia.

Mobile wallets enable the use from anywhere internet or cellular data is provided and can be accessed on a global scale. It creates the ease for the interface user, and in most cases are very user friendly. Mobile accounts are better used for small and daily purchases verses large amounts of currency driven purchases. These accounts should be used for ease of access to personal bit coin finances, and are used by many users, regardless of security aspects.

Hot/Hard wallets, or easily accessible wallets, are usually free downloadable software platforms. They also provide high security, and can guarantee malware access to your account, they also provide multi-currency accounts. These types of bit coin wallets usually also offer ledgers to help keep track of purchases, and balances. Most of these are considered cold storage and are usually considered the most secured for high currency amounts.

Security issues remain the same with all types of bit coin wallets. All of the types of software should be backed up with updated security software, pneumonic in the user passwords, or possibly a cold storage device such as a USB key.

In either case, the choice of bit coin wallets is indicative to the level of the user. This is going to be one of the indications that will determine your choice in platforms to choose from. Things such as privacy, security, accessibility, amount of currency stored, and ease of use, should always be taken into consideration when choosing the proper platform of bit coin wallet you want to use. Whether you’re a first-time user, or a bit coin millionaire investor, Its very important to see what type of bit coin wallet is best for your needs, and how to choose a bitcoin wallet.