By Shane Casey
posted June 22, 2021
Are you thinking about building your next home? A construction-to-permanent loan may be the best fit for you. With this loan, you borrow money to cover the costs of building your home, and once you move in, the loan is converted to a permanent mortgage. This eliminates the need to apply for a home loan in the future.
Before you hammer the first nail of your dream home, there are some things you need to know.
- Carefully plan your blueprint: Your blueprint should complement your lifestyle and needs. Focus on the areas of the house that are most important to you. If you enjoy cooking, allow plenty of space for your dream kitchen. Or maybe you need a large fenced-in backyard for your dog to run free. We all have different ideas when it comes to customizing our dream home. Be sure to include your needs and wants in your blueprint. Once it’s complete, you’ll need to share it with the appraiser as they are unable to move forward without it.
- Schedule a meeting with your banker: Our bankers are here to help you every step of the way. That includes thoroughly explaining your financials in simple terms, helping you understand things like your credit, income minimums and more. If you haven’t selected a banker yet, view First Farmers’ full list of lenders here.
- Know your timelines: It’s important for you to understand when phases of the project will be completed and what the overall construction timeline looks like. Equally important is discussing the timetable with your banker, so they can support you with the appropriate loan.
- Select a quality builder: You’ll need someone who is knowledgeable to help guide you from the beginning stages of the building process until the house has been completed. Be cautious of going with the lowest bid. Sometimes these builders are so focused on getting houses built quickly that they don’t take the time to talk through the details of your home with you. To ensure you’re pleased with the final product, a quality contract is necessary, so there are no surprises along the way. If you need help selecting your builder, our lenders can provide recommendations in each local community we serve.
