Cont.

It is best to factor in a longer time period than is initially projected, because homebuilding can be an inaccurate business as far as time of completion. Upon completion of a house, the construction home loan will require payment in full. A certificate of occupancy is required in order to show completion of the project for most construction home loans. Many consumers choose an agreement that has the option to convert to a permanent mortgage program when certificate of occupancy is shown. This is usually a good option for homeowners because there is no more approval processes to go through after initial approval for the lending agreement.