BUILD YOUR Dream Home

 BY NORA HESTON TARTE

Creating a home curated to match your style and everyday needs sounds like a dream come true. While there are plenty of houses on the market, the allure of building your own is undoubtedly enticing, especially if you possess the budget to do it.

“People want to build their home because they want to customize it to their needs and their wants,” says Paul Haley, VP Real Estate Loan Manager for Bank of Stockton.

There are a few extra steps when it comes to the process, however, and some are related to financing. For new construction in a subdivision where you’re choosing the bells and whistles, nothing changes. Just like buying a resale house, you will need to qualify for the mortgage through a lender that will then fund your loan once the house is complete. You get some of the perks of designing your own, without the extra steps. In this process, “about 90% of your decision making is already made,” Paul says.

For those who want to complete the process from start to finish, building a home that is completely their own, a construction loan will be needed. Just like a conventional loan, home buyers will need to qualify for the monthly payment. They will also, however, need to have the property secured. If they are financing the land, there will be two mortgages, one for the property itself and one for the house that they want to build. .

Before walking into the bank, several items are needed to secure a residential construction loan and the prepared candidate will walk into the branch with his homework done. Before a loan can be approved, home builders will need to present the project specs, a cost breakdown, and architectural plans for the home. They will also need to hire an architect, contractor, and maybe an interior designer. Aside from that, the qualifications are the same. “Lenders can help you with what is required. Then it’s just a matter of coming to the bank with the project and all of the needed information in hand to secure the home loan.”