The article highlights important considerations when building a custom home, particularly the significance of financing options like new construction loans and construction-to-permanent loans. It emphasizes the strict credit and income requirements necessary for securing these loans, which differ from traditional home loans. Additionally, the piece discusses the importance of selecting a lender early in the process, comparing rates, and ensuring your builder can meet phase deadlines. Overall, the goal is to prepare potential homebuyers for the complexities involved in purchasing new construction homes.
Building a custom home from the ground up is an exciting journey, but it's crucial to understand the financing and construction process thoroughly before getting started.
Securing a new construction loan requires careful attention to credit and income requirements, which are typically more stringent than those for regular home loans.
A construction-to-permanent loan is an appealing option for many, as it locks in interest rates at closing, providing predictability in monthly payments during the home buying process.
Shopping for a lender should be prioritized early in the process of buying a new home, as comparing rates and understanding options is essential for financial planning.
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