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February 23
Tips on financing your new home construction

​You already have a vision of your perfect dream home – the layout, the location, the landscaping all the details to create a perfect home. But now the hard part begins – securing the right loan and the right lender to make your dream a reality.​

In this video blog senior financial services officer Nancy Blaauw shares tips on how to make your construction financing as easy as possible including:​

  • Understand all your costs:  In order to know the true cost of the home and the necessary amount of financing you need to prepare a budget based on bids from suppliers and contractors. It is important to note that materials like lumber and drywall can fluctuate drastically in price so establishing a current estimate on costs is important.
  • Know the laws: Be sure you know what permits, zoning issues or other regulations impact your construction. A visit to your local township office can provide you with the information you need.
  • Utilities: Water perc tests, septic requirements and power supplies all need to be explored prior to building. Securing utilities can, at times, add additional costs some homeowners are unaware of prior to starting the building process.
  • Know your score: It is always a good idea to check your credit rating prior to seeking financing. Look for flags that maybe impacting your credit score. Your credit score will be a large factor in determining your credit worthiness.
  • Prepare a home budget: Carefully review your current home budget and spending to determine how much you can realistically afford in a mortgage payment. From there, work with your lender for a pre-qualification authorization. 
  • Cover the unknown: Private Mortgage Insurance may be an option for you if your down payment is less than 20 percent. Take some time to explore how PMI works and if it would be good fit for you.

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