Building Your Dream Home
A loan officer will help you figure out your budget. They will ask you for documents, pull your credit, go over your financial qualifications, and talk about loan options.
Now it’s time to pick a builder/contractor, home design, and lot based on your budget and needs. Tour homes and do research to find the right fit.
Now it’s time to pick a builder/contractor, home design, and lot based on your budget and needs. Tour homes and do research to find the right fit.
Once your plans are set, we will order an appraisal and get information from your builder. Once approved, you will have a loan closing to fund construction.
Now construction can start! We will monitor progress on your project with regular inspections and pay the builder according to our agreed draw schedule.
Once your home is almost done, we prepare your permanent loan. You will go through another loan approval. Once you close on this loan you can move in!
How Do Construction Loans Work?
Construction loans can have a one-time or two-time close. A one-time close construction loan wraps your construction loan and your long-term financing into one transaction. The advantage is that you close once, you pay fees once, and your permanent financing is in place from the start.
A two-time close construction loan closes your construction financing first, then your permanent financing at the end of the project. The construction financing is an interest-only loan, while your permanent financing is a traditional loan, where you make principal and interest payments monthly. The advantage is that you're not locked into a rate for your permanent financing, and your timeline for the build is more flexible.
