For some of our clients, this may be their first time building a home from scratch. So, it’s important we tell you that all first steps towards building your home start with understanding the financial process behind it all. CNC Homes will help arrange your finances with local and national lenders so you can obtain a construction loan that you’ll feel good about.
Where Do I Get a Construction Loan?
Depending on which financial institution you go through, the terms surrounding which particular construction loan you choose will fluctuate. It all begins with compiling a budget contract and defining the unique qualities of your home with our experienced builders.
There, we can provide an estimate of exactly how much the plans will cost and what that price might look like going down the road.
For most, construction loans are the first steps towards building your custom home.
How to Get a Construction Loan
There are steps to everything in life, especially when building a custom home. The very first step before you start conjuring up your wish list is to get pre-approved. Once you’re pre-approved, your construction loan will accurately reflect an amount you can afford.
Getting pre-approved is different for us all, but it’s the initial step you’ll take. When a king was building a new castle, he wouldn’t dare conceive plans of grandeur and architectural dreams only to be denied by the royal lender — that’s how wars used to start.
Times are different now, and it’s more than likely that most of us don’t hail from a royal line. So, we opt on taking a more civil and sensible approach. What you want to do is establish what you’re willing to spend and then get pre-approved.
Develop Your Wish List
Now, we can start putting together a design with you and discuss what sort of marvelous features we’re able to implement. This step is one of the most exciting parts of the process for both the customer and ourselves. We want to make sure your home feels as if it’s on the way towards becoming your very own castle.
The next part is choosing where it is that we’re going to break ground.
Determining where you want to build in Central Oregon is an exciting step. We’re happy to partner with a variety of different communities that we love to build in. CNC Homes works with entrusted real estate agents that help you find the perfect plot of land for your new home.
Explore our favorite communities that we build in and envision your home in the high desert.
Custom Homes Take Time
You’ll quickly realize that there are more steps involved in financing a custom home, and that means there are more steps towards obtaining a construction loan. What lenders will typically do is either present a one-step loan with interest. The loan is activated while we’re building a house and the lenders will transform it into a mortgage once we’re finished.
Sometimes this is a risky process. Other lenders may prefer implementing a two-step process that will have you refinancing your interest-only construction loan into a conventional mortgage once we complete your home.
We should note that construction loans are at higher risk. Make sure you have strong credit and are ready to provide a down payment of 20 – 25%.
Where We Come In
Even if this seems like a lot, CNC Homes love working with our clients to develop analytical strategies that make sense for them. Things may have been a bit simpler when kings and queens were raising castles across the countryside. But that doesn’t mean you don’t deserve to feel like royalty when building your new home.
Contact CNC Homes today, and we’ll help get you on your way towards financing your very own dream home. Who knows, you may even decide that you want to build yourself a castle.
Remember that CNC Homes doesn’t just build your new house — we build your new home.