The thought of a new custom home construction project sounds fantastic. Who does not want to create their dream home, and then enjoy the thrills of living in this dream? Building is an enticing thought. However, it is not always easy. There are always questions and concerns with new construction projects. When it comes down to it, financing a new construction project is an important yet sometimes stressful element to custom home planning. It is something no one can avoid, but that an experienced builder can make easier
At BOLD, we are here to help you with all of your questions, particularly those related to new constructions. Firstly, the BOLD Company has over three decades of experience in homebuilding. Recommending reputable lenders and making specific arrangements to help our clients is first-hand knowledge for us. For qualified home buyers, if you happen to be building a home on one of our available sites, our own lenders can finance the construction at completion. But using your own preferable mortgage lender is absolutely fine as well.
Construction to Permanent Loan
It is important to note that most of our purchasers obtain a construction-permanent loan. Technically, a conventional mortgage loan can only be granted on buildings that already exist, or have just been completed. Therefore, a conventional mortgage loan cannot be obtained to buy new land and build new construction. This is where construction-permanent loans come to play. There are several benefits to this type of loan. For instance, sometimes the market may change during the construction process and the home has to be used as collateral in order to finance the mortgage. The construction permanent loan avoids this problem because, after the inspection, it automatically converts to a permanent mortgage loan.
Loan Application Process
The first item you will need to take care of is the selection of a lender and the completion of a mortgage application. Plan to accomplish this within five business days of signing your purchase agreement. Be sure to take the completed purchase agreement with you when you first visit your lender. Your builder will provide your lender with plans and specifications of your proposed home.
Your lender’s job is to understand your particular financial circumstances completely. You will review all information on the application at your meeting with the loan officer. A situation rarely arises that your loan officer has not encountered in the past. Do not hesitate to discuss any questions you have regarding your assets, income, or credit. By providing complete information, you prevent delays or extra trips to deliver documents.
It’s In the Details
There are so many details when it comes to financing new construction. Just know that, at BOLD, we will guide you on the right path. Our goal is to make every aspect of your custom home experience a swift and happy one. Together, we create lasting value in something we can all be proud of. At BOLD, we are listening to dreams and building memories every day! Check out our various social media accounts to learn more about what sets us apart. Or, Contact Us @ 1-859-657-6700.