There's a big difference between financing for a build and financing to buy an established home. When you engage a builder you agree to make progress payments – regular pre-planned installments during the build process. Until the final payment is paid to the builder, your lender will usually only charge interest on the amount of money paid to the builder (rather than the full loan amount you've been approved for).
Lenders approach construction loans differently.
They'll ask you questions like:
- Is your builder providing a fixed price contract?
- Are you considering being an 'owner/builder'?
- Have you made provisions for extras and being over budget?
- What inspections will be made during the construction?
- What payments will be required by the builder at each stage?
I can help you navigate through the process. Get in touch.