Sponsored by Finance Factors
There are many decisions to make when it comes to planning to build a home, and one of them is where to get financing. Construction lending is very specialized and requires a high level of expertise, so finding a lender that is knowledgeable and experienced is very important. Finance Factors specializes in mortgage lending and offers a wide range of products ranging from simple 30-year mortgages to complex construction loans.
For over 65 years, Finance Factors has been helping Hawaii families reach their financial goals. Its loan officers bring with them a wealth of experience in construction lending and will walk you through the process. As a lender, Finance Factors wants to make sure that every construction project goes as planned and that each home is completed to specifications.
Rory Matsumoto at Finance Factors explains that a construction loan is basically a loan with draws based on the construction schedule, where funds are disbursed from the loan as pieces of the project are completed. To ensure that the project is being built as planned, an appraiser inspects the project, comparing it against the plans before releasing funds.
“I’m here to fill in the blanks,” said Matsumoto. “I let them know exactly what kind of documentation is needed and give them a clear picture of the entire construction process beginning from our meeting up until their dream home is completed.” Matsumoto has helped many of his clients build homes. He says although every client and project is different, the process itself is very similar.
“There’s a lot of preparation that the customer will need to do before we can make a construction loan,” he said. “When you come to us for a loan, we educate you on what needs to be done.” One of the tools Matsumoto gives clients is the “Construction Loan Checklist.” It’s a reminder of the major things that are needed in order for a loan to close:
– Find a licensed general contractor
– Provide a signed construction contract and specifications
– Get construction plans approved by the Department of Planning and Permitting
– Obtain a signed bond from the contractor (This is very important to ensure that the project is completed by the contractor)
– Obtain building permit
“One of the things I like about my job is that I get to meet all kinds of different people in a variety of different situations,” Matsumoto said. “I like problem solving and helping them to achieve their dreams!”
About Finance Factors:
The Finance Factors Family of Companies is committed to supporting the community by providing financial support to many charitable and community-based organizations. Through the Finance Factors Foundation, it directs support to four key areas that are aligned with community needs and business objectives: education, health and human services, community and civic affairs, and culture and the arts.