How to Create a Construction Finance Document in Google Docs?
Not all clients have the capacity to pay enough money to finish a project, whether if its a residential property or building construction. And a decision must be taken to know if the construction project is worth pursuing or leaving it hanging. Below are some tips you can use to create a construction finance document that you can use for the project:
1. Do a background check
If the client wants to avail of a construction loan, make sure to do a background check if the client can pay the amount it needs for him/her to build its dream house. Gather the information by making an interview or a survey to filter the client's capabilities like work, business, money, and other things.
2. Plan Before Approving
The next thing you should do is to list down the things that you will need to process the client's request. You also need to plan on what documents that you want to give to the client, like the application forms, financial statements, agreements, contracts, and other essential written communication materials. It must have legal documents before approving the loan and proceeding the project.
3. Use MS Excel
Microsoft Excel has a lot of tools you can utilize for you to create some documents for your construction finance process. You can make essential documents needed to keep the client agree to your terms and conditions and other materials.
4. Assess and Evaluate
Make sure that the communication breakdown is complete. It is the agreement between you and your client. If there is missing in your process, it would be difficult to resolve some issues and processes. So, make sure to complete these construction contracts and conditions. Plus, don't forget to check if the details are complete.
5. Produce an Output
Save your files on your computer or websites like Google Drive or Yahoo Mail. Print them according to the number of your needs. You can also give the management a copy of your documents.
What is Construction Finance?
Delayed payments and long term payments are one of the biggest problems that a construction company faces. However, construction finance can be applicable to cover the expenses in building a project such as a house.
How does Construction Finance work?
The borrower applies for a construction loan from the lender. Once the lender is satisfied with the information provided by the borrower, this means that the request is approved. The construction company will begin its process of building, constructing, or renovating the project. And when the contractor has completed the project, the borrower must pay the amount required of him/her to build the infrastructure.
How long is the Construction Finance take to process?
It would take weeks to process such a request since the lender has to do a background check of the borrower. The documents also go through a process of approval from the authorized person.
What are some Advantages of Construction Finance?
It would be an advantage for the lender to raise interest on the investment while the borrower has given a period of time to look for finances to pay the borrowed money.
What are the Types of Construction Loans:
Below are some of the types of construction loans that you need to consider:
1. Renovation Construction Loans
2. Construction Only Loans
3. Land Only Loans
4. Construction Mortgage Loans
5. Construction to Permanent Loans