There is much to consider before beginning a Construction project, such as loan costs, lot financing, and insurance policies. We’ve answered some of the most frequently asked questions to help!   Is an Appraisal necessary? How is “value” determined? Yes, an appraisal is necessary. Since the home is not yet built, the appraiser will consider the construction contract, plans, and specifications and then searches to include a number of comparable sales within the area during the last six to twelve months. Under most circumstances, “Value” for the sake of financing, is the lower of total costs or the appraisal amount.   What can I expect for payments during the initial Construction period? Interest on the outstanding principal balance. You can... Read the full article.

The post Construction questions? We’re here to help! (Part 2) appeared first on Great Midwest Bank.