What does the term "No Construction Loan" mean? How much money do you need to put down to start the construction of your new home? If you're wondering the answer to some of these initial questions, let's walk through the turnkey building solution we offer at Chase Custom Homes & Finance, step by step:
Pre-approval from the lender of your choice. If you will be financing your build, you will need to meet with a banker or mortgage broker of your choice to determine budget.
We meet to discuss your needs and wants in a new home, amenities, features and finishes and determine a price.
Once we determine the price, everything goes off to your bank for appraisal. Everything is appraised up front so we know we have value.
You might be wondering what you need for money down on a new build? Your down payment is determined by your financing. For example, if you're doing a conventional 10% down loan on a $300,000 build, your down payment will be $30,000.
We carry the expense of the build throughout the construction process, so you do not pay interest or make additional payments throughout construction.
Once we are in the final phase of construction, the town or city will come out and do a Certificate of Occupancy inspection and your lender will also complete an inspection.
Once all inspections are completed, we are ready to close. The closing happens just as if you purchased an existing home. At closing, your lender pays us off with what is called an end loan and you assume your mortgage to your lender.
Have more questions? Our team is happy to explain the process in depth.
Give us a call at 207-892-2700.