Building a home can be incredibly exciting – from picking out the location and deciding on floor plans to selecting kitchen designs. Managing the whole process, however, can seem daunting. With the right team and planning in place, you can confidently navigate the construction process to make your home dreams a reality.
Why Should You Consider Building Your Own Home?
Perhaps the greatest benefit of building is it provides you the opportunity to customize your home to fit your lifestyle and needs. You’ll have input on the number of rooms, layout, and even design features to fit your taste and even the opportunity to choose energy conscious materials and appliances to help you manage utility costs.
When existing home inventory is limited, building may also be the best way to get you into or close to your desired town or neighborhood. Being near the family, friends and activities you enjoy as well as the school system you prefer can go a long way when it comes to your long term happiness in a home.
Having the opportunity to see your dream come to life throughout the construction process is sure to give you a great sense of pride and accomplishment when you walk through the doors of your finished new home.
Financing Your Construction
Budget, scale and realistic expectations are important factors to discuss with your lender. The construction period can last up to 12 months, so you may want to consider things like – Where will you stay during the construction process? Do you need to sell your current home? Will you need a short term rental?
Financing for construction loans generally works a little different than traditional home loans. The process has two phases – construction and mortgage. While many lenders hold separate closings at each milestone, MVSB offers one convenient closing for both phases. While your house is being built, you will pay only interest on land, construction costs and escrow amounts as applicable. Contractors are paid as each portion of the project is completed during the construction phase, helping to keep your home on budget.
When the construction is complete, the loan switches to a traditional principal and interest loan with the rate and term you originally closed on. Construction-to-Permanent Loans, as they are often called, offer the advantages of one set of closing costs, qualification for more than one loan at one time and your rate being set prior to the consummation for the term of the loan.
Choosing Your Lender
Choose a lender you feel comfortable with and takes the time to get to know you and your project goals. Working with a local lender has advantages, including a great understanding of special loan programs and resources that might benefit you.
MVSB does a great deal of construction lending in the area, so we stay well connected with reputable realtors, builders, and contractors to help guide you through the process. We also understand the unique challenges and advantages of building a home in a state with such geographic diversity, so we don’t shy away from ideas and plans that are outside the box. Our construction loan specialists guides you through the construction and renovation process, even doing personal site visits to ensure the project stays on track and within budget.
Don’t be intimidated – you’ll find experts and resources as close as your local bank! CLICK HERE to find more information on our home construction loans. Contact a member of our mortgage lending team to learn more and to apply at mvsb.com/personal/home-lending/mortgage-lending-specialists.
Meredith Village Savings Bank (MVSB) is a Member FDIC and Equal Housing Lender. NMLS#466022