Applying for and getting approved for a mortgage and a construction loan can be the most stressful part of buying a home. On top of that, building a home makes things a bit more complicated. We’re here to help you make smart choices and get through the financing process with a little less pain.
How to get financed for new construction
When it comes to paying for a new home, you’re going to be dealing with two types of loans, a mortgage and a construction loan. The construction loan finances the construction of the house, and the mortgage pays off the construction loan. You move in and then pay on your mortgage.
The problem is that mortgage lenders and construction lenders aren’t even the same type of lenders. A mortgage lender functions the same way that it would if you were buying a house that was already built. You fill out a ton of paperwork, they check your financial history, etc.
A construction lender, however, is a bank. And the process isn’t the same. Banks look at different criteria and financial history. They make decisions based on the worthiness of the buyer. They look at you not just as a name on paper, but as a person. Usually they want some skin in the game and are more wary about lending.
Simply put, there are more moving parts and stress in financing new construction. But that’s where we come in.
How Turner & Son makes financing easy.
Construction lenders are more favorable to applicants with a reputable builder. Fortunately, we’ve spent years building strong relationships with banks. Turner & Son will introduce you to one of the several bankers that we use and trust, and who trust us with your, and their, money.
We’ll be with you through every step of the financing process. Even if your credit isn’t where it needs to be to buy a new home, we’ll introduce you to credit repair and financial specialists who will help you make the right financial steps. And we’ll be waiting to build when you’re ready.
Building this home on your own land is your dream. We’re ready to be your guide and to take out some of the stress that comes with sorting out the financials.
Recent Blog Articles on Financing
- Are you getting the right construction loan?
- Is your lender familiar with the construction business?
- Financing your custom home doesn’t have to be scary
- What’s different about financing a custom home
- Arm yourself for an appraisal