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CUS TOM CONS TRUC TION Building a custom home is a dream for many people. Figuring out how to fi nance it can be challenging. Consider using an all-in-one construction loan. ese loans combine the home construction and lot purchase or land payoff with one loan. A er construction is complete, mortgage payments begin without requiring you to refi nance the construction loan, saving thousands of dollars in potential costs. With an all-in-one construction loan, your interest rate is locked before work starts, and you make interest-only payments over the term of construction. Flexible fi nancing options are available including both fi xed- rate and ARM loans. A er construction is complete, some lenders may off er more favorable terms than those of your loan. is option is commonly known as a "fl oat down." BU YING A NE W HOME ere are many reasons to consider purchasing a new home rather than remodeling an existing home. A new home is move-in ready, likely more energy effi cient (lower utility bills), can feature new appliances and modern design, and include the opportunity to choose a fl oorplan that suits your lifestyle. e challenge with purchasing a new home is that it may not be ready for four to six months, exposing you to interest-rate risk. Look for a lender that off ers long-term extended locks that protect you from interest-rate fl uctuations. In addition, ask them how long your credit documents are good for and if they have appraisers that specialize in new construction. is may help reduce last minute errors, delayed closings and requests for new documentation. 55 percent of baby boomers say they will move when they retire. stageofl ife.com The decision to remodel, renovate, buy new or build can be complex, but financing your project shouldn't be. Start talking to your lender early. BUILD 19 FALL 2016 HomeMatters mbaks.com