With today’s economy, many people are staying in their current house. This makes it quite inviting to finally complete those renovations and additions that you’ve been talking about for years.
But where to start?
If you don’t have the cash or don’t want to spend the cash right now, what many people do is apply for a construction loan. A construction loan is a loan that is given to complete a specific construction project. A construction loan is different than a conventional loan in that the money is not given all at once. Rather the lender provides portions of the loan for each stage of the project.
Draw Inspection / Percentage Complete Inspection
To verify the current state of work, the lender will most likely require draw inspections. A draw inspection is verification that the work that is said to have been done – actually has been completed. These a relatively easy and painless inspections where an inspector takes some pictures of the completed work and completes a percentage checklist that states how much of each component of the project has been completed.
Providing Your Loan Money
As long as the work is being completed the bank will keep providing the construction loan money.
So get started!
Finish that basement, complete your addition, and get the home you are living in today, the home that you want it to be.
Andrew Rook is the owner of Rook Home Inspections and performs home, commercial, draw, and investment property inspections in Mercer County, New Jersey.