Construction Lending Myths Busted!
With refinances tapering off and less real estate inventory available to your potential loan clients, opportunity in the construction loan market expands every day. In the past, construction lending was seen as extremely risky and time-consuming. With technology and the right strategy, however, you can make construction lending very profitable. The following are the three biggest construction lending myths—busted!
CONSTRUCTION LENDING IS A LOSS LEADER
Digital draw management software provides many ways to make construction lending an easy money maker, while securing future income from borrowers who are highly satisfied with their construction loan process.
Best-in- class user experience helps attract and retain the best builders, borrowers and draw inspectors.
• With greatly reduced construction lending risk, digital draw automation software allows lenders to operate with reduced price sensitivity.
• Builders working through a construction lending software platform enjoy the expedited draw process, which allows them to speed up the time required on a job, reduce their own costs, and increase profits. Builders satisfied with the automated draw process will lead to lasting builder-lender relationships and future business.
• Borrowers who are pleased with their construction loan process will be more likely to request that permanent financing remain with the same lender, increasing your company’s fee income and long-term mortgage portfolio.
MODERNIZED CONSTRUCTION LENDING
Construction lending is not what it used to be. With the right tools, you can safely grow your construction loan portfolio while avoiding the high risk, time-consuming, paperwork headaches that used to go hand-in-hand with construction lending. After adopting construction loan automation software, your credit department, lenders, borrowers, builders, and profits will thank you.
Learn more about BankerAdvice vendor Built Technologies, the leading provider of secure, cloud-based construction lending software here!