<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1594118447410323&amp;ev=PageView&amp;noscript=1">

Disclaimer

You are now leaving the Independent Bank website.

Linked web pages are not under the control of Independent Bank, its affiliates or subsidiaries. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Independent Bank provides external links as a convenience and is not responsible for the content, accessibility, or security of any linked web page.

Click “OK” to continue or “Cancel” to go back

Ok Cancel

Disclaimer

You are now leaving the Independent Bank website.

Linked web pages are not under the control of Independent Bank, its affiliates or subsidiaries. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Independent Bank provides external links as a convenience and is not responsible for the content, accessibility, or security of any linked web page.

Click “OK” to continue or “Cancel” to go back

Ok Cancel
x

Disclaimer

You are now leaving the Independent Bank website.

Linked web pages are not under the control of Independent Bank, its affiliates or subsidiaries. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Independent Bank provides external links as a convenience and is not responsible for the content, accessibility, or security of any linked web page.

Click “OK” to continue or “Cancel” to go back

x Want to chat? How can we help you? open chat
Menu
Search
Locations
Login

Constructing Your Dream Home

What you need to know when you’re building rather than buying

Blog_-_Constructing_Dream_Home.jpgAbout 11% of single-family homes constructed in 2011 were custom built for their homeowners, according to the U.S. Census Bureau. Many people choose pre-constructed homes rather than custom-built homes, believing the building process to be too complicated.

Here’s what you need to know to help you decide which choice is right for you:

Save. Just like with any mortgage, you’ll have to come up with a down payment when building a home, but the down payment can be as low as the 5% minimum you’d need for a traditional mortgage, says Bob Brill, a mortgage loan officer with Independent Bank. Start with your local banker, as he or she will know the market. If you have to purchase land, you’ll need to figure that cost into the total as well.

Apply. In addition to the financial information you need when applying for a mortgage, you’ll have to provide a budget and a project plan with a timetable. “Just like for a purchase transaction, borrowers should be pre-qualified based on the anticipated cost of construction,” says Brill. “Once they have the contract and plans for the construction, we order an appraisal and move toward closing.”

Access. Your construction loan will likely be a short-term loan (typically a year) that could potentially have slightly higher initial interest rates than a traditional mortgage. You’ll draw on the money based on the stages of construction outlined in your project plan timetable.

Close. Once construction is complete, contractors have been paid, and your home has been inspected, your construction loan will be converted into a mortgage, and you’ll generally pay for just one closing cost.

 Learn more about construction loan options

Join our newsletter!

Latest posts

Revising Your Will

4 Reasons to do so
Read More

Money and Marriage

How to maintain financial health
Read More

Private Mortgage Insurance

5 Things you need to know
Read More

Holiday Budget Planning

A few tips for millennials
Read More