Appropriately Sizing Your Budget

Determining a viable project budget can be a complex analysis for first-time home buyers, let alone first-time builders dealing with land acquisition and construction.

The fundamental determinant of how much debt a lender is willing to provide, for construction as for an existing home purchase, is Loan-to-Value (LTV). LTV is the proportion of the lower of total project cost or appraised value that the lender is willing to finance through debt.

 

Britishconstruction design team helps with the financing process by starting your project design with a recommended base design, aiming to optimize for appraisal.  Many clients then opt to customize or add on premium options like expansive decks, pools, or luxurious finishes.  In addition, local governments may require additional specifications for safety or local code, which apply to all new construction. Depending on your geography and options, these options may or may not appraise at full cost, while they often do add functionality, safety, and wonderful lifestyle features.  In your project design process, BC experienced team seeks to be thoughtful about cost while helping you make trade offs on appraisal vs value for your specific lifestyle.

 

Build Your Budget

 

We have created a variety of tools to help you budget appropriately in light of the variety of site options given land type and project requirements.

We will work with you and the loan lender throughout the whole project and the whole construction process.

 

 

Initial Consultation

 

Britishconstruction will provide an initial meeting with our in-house team on your project financing, including an overview of construction finance terminology and concepts. Additionally, our project finance experts will guide you through a Budget Builder exercise to dynamically model project assumptions and determine the potential impact on key finance requirements, namely the cash requirement for closing, the post-closing liquidity requirement and monthly debt service.

 

 

Project Finance Guide

 

As part of the Conceptual Design Study (CDS) package, you will receive a Project Finance Guide, which will provide deeper discussion of key finance terminology and concepts. Additionally, we will review our "Project Finance Toolkit" with you, providing a re-examination of key finance requirements as updated by the CDS preliminary estimate.

 

 

Lender Introductions

 

Once project design and cost has been established by the Conceptual Design Study, our team will facilitate introductions to 1-3 appropriate lenders, including delivery of project detail and supporting documentation.

 

It is common for Britishconstruction clients to bring pre-existing banking relationships to their projects. In these cases, the Project Finance team will work with the new lender to get them familiar with Britishconstruction product and process, to vet Britishconstruction as a builder and will help negotiate appropriate terms and conditions.

 

 

Appraisal and Loan Closing

 

Britishconstruction team will accompany the design process and assure that key milestones in the project finance process are moving in line with project process.

 

Appraisal

Our team will work to ensure that the appraisal is ordered in a timely fashion, assemble a full appraisal package to be delivered to the appraiser, and assist in any appraisal questions if necessary.

 

Closing

BC team will ensure that all necessary Britishconstruction materials are delivered to the lender in as rapid a manner as possible so as to ensure financing closes on time.