Financing a new home can be an overwhelming task. For some people, buying or building a home can be the largest investment they will ever make. Understanding the steps involved in financing a new home will allow you to better plan for the future. There are many options available for home financing. It is important to choose a plan that best suits your lifestyle and leaves you with the home of your dreams.
The first step in the home financing process is to pre-qualify for a loan. This will allow you to get a general idea of how much you have to spend on your new home. The initial calculation is based on several factors including income, down payment, credit rating, and employment. Most new home builders partner with a specific lender. Pre-qualifying is now easier than ever, because it can be done online. Southland Custom Homes offers a secure online form to make pre-quailing fast and straightforward. Southland ensures that your information is protected and kept confidential. From there, it is easy to get pre-qualified for a loan to start building your dream home.
After you pre-qualify with Southland Custom Homes, you are assigned a Southland Building Consultant to assist you with every step of the home building process. They will be there to answer any questions and address any concerns you may have along the way.
Before beginning construction on your new home, you must make the initial down payment. Many buyers have saved up enough to make their down payment. In other cases, down payments can be made from land equity or borrowed from your 401K. Most mortgages require that you put down between 5% and 25% of the building costs before the start of construction. The down payment can be a large initial cost, so financing with the right company is important. Southland Custom Homes offers down payment assistance to qualified buyers.
After making the down payment, choose the mortgage plan that is right for you. There are two types of mortgages typically associated with building a new home. The first is a Conventional and Construction/Permanent Mortgage. This mortgage has more flexibility and the potential for higher loan amounts. These loans often have higher pre-qualifying standards and frequently demand a larger down payment. There is also the option of an FHA/VA Mortgage. This option has easier qualifying standards and asks for little or no money down. Depending on the location of the home, this type of mortgage often has a maximum lending amount. Both types of mortgages offer 15-30 year fixed rates. Southland Custom Homes has over 30 years of experience building custom homes. Feel free to contact Southland with any questions about choosing the best mortgage option for you and your new home.
A construction loan is often needed to cover the cost of building your dream home. If you have a Conventional or FHA/VA mortgage, you will need a separate construction loan. This loan will be paid off by the mortgage lender when the construction is finished. In most cases, Construction/Permanent Mortgages have already included a construction loan, and can save you money on closing costs.
This is the final step in the home financing process. Closing costs are the fees that come with the process of buying a house. Some examples include legal fees, title service costs, recording fees, mortgages application fees, inspection fees, home warranties and more. Closing costs can be up to 8% of the price of the home, but are usually less. In some cases, if you cannot afford the closing costs, lenders will allow you to include the closing costs into the mortgage. Discuss this option early in the process, to avoid any surprises down the road.
Financing a new home may seem complicated, but Southland Custom Homes has experienced building consultants to help you every step of the way. Our experienced team has the knowledge and skills to help you make the best decisions for financing your dream home. To speak to an expert about financing a new home, call our toll free number at 1-866-56-BUILD. For more information about financing with Southland Custom homes, visit our Financing page here. You will even have the option to pre-qualify today using our secure online form.
For those wishing to have a custom home built in Georgia, Southland Custom Homes has the experience necessary to build you a fully custom home in the location of your choice. Southland Custom Homes is one of the most highly-respected on-your-lot builders in Georgia, so no matter where you plan on buying property, we can custom build your home on your dream site.
With over 120 floorplan options to choose from and an array of top-of-the-line interior appointments, Southland Custom Homes offers an incredible array of customizable options. In addition to providing a huge selection of plan options, Southland Custom Homes will even work with new homebuyers to alter any of our floorplans so the final result is exactly what the buyer wants. If you are looking for a building company in Georgia that specializes in delivering superior customer satisfaction and homes that are designed and built to last a lifetime, then visit a Southland Custom Homes showroom today.
Southland Custom Homes, one of the premier Georgia on-your-land builders, has model showrooms located in Macon (3956 Bloomfield Village Drive, Macon, GA 31206), Dawsonville (98 Bethel Drive, Dawsonville, GA 3053), and Marietta (265 N. Cobb PKWY, Marietta, GA 30062). Stop by today to see all that Southland has to offer!
If you are looking for an experienced builder of new homes in Georgia, Southland Custom Homes builds in the following locations:
Ben Hill County
Jeff Davis County
We also build in the following cities in Georgia:
North Druid Hills