With the quality of homes and communities that are under construction these days, a brand new home becomes increasingly more attractive. These new homes are built with the latest in building practices and often incorporate details that fit with our more modern, technological lifestyles. However, the process of starting from scratch in building a new home is slightly more complicated than buying a pre-existing home. If you’re considering purchasing a new home, starting from the ground up, you should consider working with your builder on a home builder construction loan.
A number of home builders, including Ryan Dicharry Construction, offer construction financing. This is typically a short-term loan used for financing, which covers the cost of land development and the actual construction of your home. The money from this kind of financing is doled out in a series of advances or draws as the construction process meets various deadlines and milestones.
While you can go through a bank for construction financing, they typically require a 20% down payment, and this is before you obtain financing for the actual mortgage on your new home. At Ryan Dicharry Construction, they can offer construction financing for $3,000 and up, depending on the lot location. Then, once the construction is complete, the home buyer obtains a mortgage from a bank or other lender as usual.
While it’s always good to shop around, it is worth checking out construction financing through the builder. It can help speed up the process from application through settlement, and may even help with your financing application and save you money on the total cost of the home mortgage and closing costs.
As always, whether you’re going through a bank or a builder, make sure your credit report is up to date and there are no errors. Also start gathering any documents, such as tax forms, income, etc. that are necessary for any loan. Finally, make sure you understand just how much home you can afford. Most home builders and lenders include cost calculators on their websites to help you get a feel for just how much you’ll need depending on the home you want, letting you explore various loan options and lengths. It’s always important to be clear in advance on all of the costs that come with purchasing a home.
If you are ready to make the move and purchase a brand new home, turn to Ryan Dicharry Construction for a home builder construction loan, as well as some truly outstanding homes in excellent communities. There are currently 10 homesites available in Crescent Estates community, and 18 lots available at St. John Place community. Building on these lots means much of the work involved in building your own home is already covered. Now you just have to choose the ideal home plan from the variety of stunning homes that Ryan Dicharry Construction builds.