FAQ's
LaRoc Builders The smartest way to spend your money and invest in your future
What is construction management?
Construction Project Management is the overall planning, co-ordination and control of a project
from inception to completion. The aim is to meet a client’s requirements in order to produce a
functionally and financially viable project. That will be completed on time and within authorised cost
and to the required quality standards. Project management is the process by which a project is
brought to a successful conclusion.
Construction Project Management is the overall planning, co-ordination and control of a project
from inception to completion. The aim is to meet a client’s requirements in order to produce a
functionally and financially viable project. That will be completed on time and within authorised cost
and to the required quality standards. Project management is the process by which a project is
brought to a successful conclusion.
What is cost plus pricing?
LaRoc Builders offers the method of building your home, known as Construction Management.
This method offers you, as a home buyer, the option of setting your own specifications and
designs at affordable costs. Our fees are handled on flat rate basis. This means that you pay cost
for your home plus our flat fee.
LaRoc Builders offers the method of building your home, known as Construction Management.
This method offers you, as a home buyer, the option of setting your own specifications and
designs at affordable costs. Our fees are handled on flat rate basis. This means that you pay cost
for your home plus our flat fee.
What financing is available?
Although we do not offer financing, we hope this next section may provide you with some of the
questions you need to ask.
Lot Loan - Lot loans are used to secure a lot for the construction of a new home. Typically the
lender will require collateral to finance a lot. If you agree to use the lender for the construction
and mortgage loan, you will get preferential terms on the lot loan. The construction loan and lot
loan will be consolidated into a single loan.
Construction Loan - The construction loan is the money that is actually used during construction
of the home and is based on short term interest rates. Think of the construction loan as a line of
credit, where your builder is given the money as the home is being constructed, based on levels of
completion. Generally, some contingency is built into the loan to handle fluctuations in material
costs or change orders requested by the client. At the completion of the home, the amount of
money actually used, plus interest charges and any other fees are consolidated and rolled into the
mortgage.
Mortgage - The mortgage is based on long term interest rates and may or may not be at an
interest rate similar to the lot loan or construction loan. Lenders may offer to do a two time or one
time close. A one time close will be where you close on the construction loan and mortgage at the
same time. This allows you to “lock” the mortgage interest rate at the start of construction rather
than at completion. In very rare instances, clients are able to obtain favorable terms on the
purchase of the lot, that then allow us to complete the entire design phase prior to closing on the
construction loan. The lot is then paid off with the construction loan, thus saving some closing
costs.
Although we do not offer financing, we hope this next section may provide you with some of the
questions you need to ask.
Lot Loan - Lot loans are used to secure a lot for the construction of a new home. Typically the
lender will require collateral to finance a lot. If you agree to use the lender for the construction
and mortgage loan, you will get preferential terms on the lot loan. The construction loan and lot
loan will be consolidated into a single loan.
Construction Loan - The construction loan is the money that is actually used during construction
of the home and is based on short term interest rates. Think of the construction loan as a line of
credit, where your builder is given the money as the home is being constructed, based on levels of
completion. Generally, some contingency is built into the loan to handle fluctuations in material
costs or change orders requested by the client. At the completion of the home, the amount of
money actually used, plus interest charges and any other fees are consolidated and rolled into the
mortgage.
Mortgage - The mortgage is based on long term interest rates and may or may not be at an
interest rate similar to the lot loan or construction loan. Lenders may offer to do a two time or one
time close. A one time close will be where you close on the construction loan and mortgage at the
same time. This allows you to “lock” the mortgage interest rate at the start of construction rather
than at completion. In very rare instances, clients are able to obtain favorable terms on the
purchase of the lot, that then allow us to complete the entire design phase prior to closing on the
construction loan. The lot is then paid off with the construction loan, thus saving some closing
costs.
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| Contact Us 847-344-9252 Email: larocbuildsbest@yahoo.com |
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