So you want to build a new custom home. Here are a few tips from a couple of people in the industry that you may work with sharing some of their advice:
The New Construction Process: REALTOR Barry Long®
Here are some of the steps involved:
1. First find out how much home you can afford. That means talking to some lenders to find out what you qualify for.
2. Second, pick a reputable builder. That means interviewing several builders and find one that will do what you are wanting to do. There are many different options out there including builders that have a few set floor plans. There are also builders that will customize a floor plan specific to what you want or let you bring in a floor plan you already have.
3. Have buyer representation so you have someone looking out for your best interests.
4. Next, pick your lot location where you are going to build. Some builders may have specific lots that you choose from.
5. Construction of home usually takes 4-5 months depending on the season and the weather.
Remember that building a new construction custom home take patience and time. Keep that in mind as you plan for your custom home build and you will do just fine!
Many Construction Loan Options: Bill Walther Home Loan Sales Manager/Numerica Credit Union
There are many options and each bank or credit union will have their own portfolios that they can offer to someone looking to build a new home. Make sure to check out several and see which one suits your needs. Home loan sales manager Bill Walther, from Numerica Credit Union, tells a little about what they offer:
“Numerica Credit Union is offering 30year and 15year fixed one-time close Custom Construction Loans. One-time close means less fees and expense than the traditional two-step closings offered by many other lenders. We collect interest only payments during the construction phase based on the amount of money drawn and then convert the mortgage to a fully amortizing one at certificate of occupancy. When the modification from interest only to fully amortized occurs we offer a free interest rate float down…this means that if the going interest rates for mortgages are lower at the time of modification than when we began the construction process you, the borrower will get the lower interest rate for the remainder of the loan. If interest rates are worse at the time of modification our members will still get the better rate that we used during the construction process. Not only do we do custom construction for single family primary residences we will also provide construction loans for primary homes up to 4-plex units, second homes, and owner builder loans for qualified borrowers.”
There are many options and each bank or credit union will have their own portfolios that they can offer to someone looking to build a new home. Make sure to check out several and see which one suits your needs.
We hope this helps! As always, thanks for reading and we welcome any additional information or comments you may have.
By Charee Jackson
1920 N. Pittsburgh St., Suite A
Kennewick, WA 99336