What you should know about construction loans

The construction loan is broken down into several payments or “draws” that will be issued throughout your building project.Generally we work with the bank requesting draws on an agreed upon schedule, usually once per month. We submit the necessary paperwork to them and provide waivers when necessary to make the draw request process a smooth transaction.Each month you will make payments on the construction loan. The payments cover the interest on the outstanding balance of the construction loan. A bank inspector or appraiser may visit your job site each time a draw request is made. Their job is to confirm that the items for which payment is requested are complete or near completion so the draw can be issued.
We have worked with several lenders that are familiar with log and timber homes. Let us know if you need recommendations.