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Financing Your Heartland Builders Home With a Construction Loan | Blog

At Heartland Builders, creating the perfect home for you is always our priority, but making sure it’s within your budget is just as important. We believe that your home is the most special place in the world, which means that you should be able to afford it and feel confident in your financial future.

Many of our homeowners obtain construction financing — every 30 days, we’ll request payment from your bank with a detailed breakdown of the amount and what it will be used for. We guarantee that your money is always easily accounted for, and our process allows you to know exactly where you stand financially. You will see the same documents that the bank sees.

If you think you might opt for a construction loan, one of the first things you should do is talk to a couple of banks or credit unions about their options. Banks have different programs, so we suggest asking at least two. Of course, if you need some recommendations, please feel free to ask! Here a few things to ask the banks:

  • What if I want to tie the land and the construction loan together? How does that work? What about the timing? Can I buy my land today and start my home in 6 months or does it need to be closer?
  • Does the construction loan automatically turn over to a mortgage at completion of the home or is there another closing?
  • What if I want to refinance quickly after I move in to get a better interest rate? Is there a cost?
  • What if I want to pay my loan down early by making extra or larger payments? Is there a penalty charge?
  • What if I don’t want to sell my home before I move into my new home? Do you have a program for that?
  • How is my credit score? Do I need to work on it at all to make me more attractive to lenders?

If you have a home to sell, invite a couple of realtors over to give you an idea of what they think it will sell for. You can also take a look at what other homes in the area are selling for through MLS sheets that realtors can provide. With this information, you can better formulate your budget for a new home.

Most importantly, our team knows that this process can seem stressful and overwhelming — that’s why we’re here to help you through whatever part you’re not completely confident in. Whether you’re looking for advice or the answer to a question, we are here to help.

As you bid farewell to 2019 and look ahead to opportunities in the new year, check out our financing page for more insights into our Easy. Fun. Fast(er) Than You Think homebuilding process. We can’t wait to meet you!