If you are moving to Jacksonville and plan on building your new home, keep in mind that some home builders will request that parties seeking to build a home take out a construction loan. Many times, a construction loan is not one that benefits the buyer, All My Sons of Jacksonville can help explain why:

Construction loans are loans that are more convenient for the builder and not always the buyer. When a builder wants you to acquire a construction loan that is because they want you to finance the cost of construction, as opposed to buying a home that is already constructed.

Construction loans are often called “story loans” because your lender will want to get a very thorough construction-plan narrative and timeline before they will approve funding.

Take extreme caution with a builder who requests you to get a construction loan. If they do request you to get one, do some more research on the company and make sure that they are trustworthy. Otherwise, you may end up with a disaster of a construction loan, one that is constantly growing due to escalating costs that an irresponsible builder will pile on as construction continues.

Research the builder, check references, check with the attorney general’s office, obtain a credit report, and check for lawsuits and outstanding liens.

If the builder that you hired is confident in their work and trustworthy, ask them to take on the task of getting a constriction loan to ensure that your home will be built to your standards and on time.