Have you thought about building your own home? It’s not just something other people do. You can construct your dream home from the ground up with a little know-how and the right financing.

Steps to Building a Home

First, find a builder. Browsing your local homebuilders’ association is a good place to start. Area real estate agents can help and the real estate sections of local papers usually feature builders. The right builder can often help you with selecting a site, a home design, and more. It’s best to get a lawyer who specializes in construction contracts to go over the paperwork.

The construction process breaks down into six phases: preparing the site, laying the foundation, framing the home, adding walls, windows, and doors, outfitting the interior, and completing the final details.

From start to finish, if all things go according to schedule, building a home usually takes about nine months.

Streamlined Construction Financing

A One-Time Close Construction loan may be the financing you’re looking for. Here are a few reasons why:

Lower closing costs. With traditional construction financing, you essentially get two loans: one to build the home and one for permanent financing. That means double the closing costs, which are usually about 3% to 5% of the loan amount. With a One-Time Close Construction loan, you only pay that cost once.

Qualify once. With conventional construction financing, two loans mean two qualification processes. Two rounds of gathering pay stubs, tax returns, W2s, and all manner of financial information. Not so with a one-time construction loan. There’s no need to qualify a second time!

Lock in an interest rate. Are you worried that interest rates will rise between the start of construction and the finish? You don’t need to if you choose a 30-year fixed loan with a balloon payment in 15 years. So no matter the market conditions, your rate stays the same.

Avoid an intervening lien. Folks who have dealt with intervening liens will tell you to avoid one at all costs. This can happen when the borrower has a dispute with the builder and doesn’t want to pay until they’re satisfied. The builder’s unpaid subcontractor can then file a lien that prevents permanent financing. But not if the financing is in place from the start with a One-Time Close loan.

To talk about building your new home with a loan expert at Decker Group, you can contact us online or call us at (972) 591-3097.