If you are considering having a new home built from the ground up instead of purchasing an existing home, then there are a few things you should be aware of before proceeding.
The benefit of having a new home built is that you can customize it to your family’s needs, personal tastes and also the desired location. You may also benefit from potential builder incentives such as no closing costs, points or special interest rates.
One of the other things to take into consideration is the fact that new home construction can take several months to complete before your home will be ready for move-in and you will need to make arrangements for your family during this time. In addition, there may be additional paperwork involved prior to final loan preparation such as construction project and builder valuation and inspection reports.
With new home construction, there several options for financing including the option to lock in your rate while your home is still being built, which will protect you from market fluctuations. One other option with new home loans is the convenience of two loans: one for financing the construction and one for the permanent loan once the home is complete.
If you would like to discuss loan options for your new home construction loan, give us a call.