Getting a construction loan to build your very own custom home from the ground up is a little different than buying an existing home. We have the perfect construction loan solution to help you make your dream home a reality. Here are a couple of considerations to keep in mind as you get started:
- Use a qualified builder. Anyone less than a licensed general contractor with a proven track record will make getting a loan harder. If you’re acting as your own general contractor, you may have additional requirements to prove you’re qualified for the job.
- Get an appraisal. How do you appraise something that doesn’t exist? Most likely, you will need to have an appraiser consider any specs or blueprints of the house, in addition to the value of the land. They compare that information to similar homes in similar locations and determine the value from there.
TWO CLOSINGS. ONE LOAN. IT’S THAT SIMPLE.
Luckily for you, PrimeLending can help with this complicated process. We offer a streamlined two-step construction loan process. First, you get a temporary loan to start the project. Second, once construction is complete, we’ll refinance your initial loan into a traditional mortgage at the most favorable terms possible. Here are just a few benefits that we provide to make the process smoother:
- We’ll lock the interest rate for your second refinance loan up to 12 months. This protects you against rate increases, and the lock fee will be refunded when the loan closes.
- Your first loan will come with a fixed rate and you only pay interest on money used for construction, not the entire loan amount.
- When you refinance your initial loan to your regular home mortgage, you’ll receive closing cost credits that may result in low or no cost refinancing.
FINANCE YOUR NEW CONSTRUCTION DREAM HOME
From deciding where to put light switches to picking out colors and appliances, you’ll have plenty to think about. So, we’ll take any concerns about financing off your mind. We assure fast, efficient closings* and hassle-free document collection and submissions. We also promise to support and keep you informed throughout the entire loan process. Every step of the way.