The best partnerships are the ones that support you from beginning to end. Building your forever home is no small feat. It will take some effort, but at the finish line you will be able to step foot inside the home you’ve always envisioned – and that feeling is priceless.

Whether renovating your current home or building from the ground up, navigating the finances of homeownership can be daunting. But rest assured, we are with you every step of the way. As your community bank, we want to help our neighbors navigate the home construction loan process or work with you to get the best possible mortgage quote. We provide a judgment-free zone and believe no question should go unanswered. We are dedicated to investing all the time in the world into your process, making sure you feel comfortable and secure in your buying or building process. We are here to help in any way we can. Your perfect home doesn’t need to be a dream, you deserve to make it a reality.

The first step to bringing your forever home to life is planning. By partnering with The Callaway Bank, we can assist you in preparing your financial needs for the big build or purchase. As experts with home construction loans and mortgage quotes, we are ready to break down all the numbers and figures to help you where you are wanting to go.

Tips on Crafting Your Forever Home – The First Time

Few things are forever, but your home can be one of them. It is important when creating your dream home to avoid planning around what’s trendy right now, but focus on what will still be fashionable 10, 20, or 30 years from today. The point of a forever home is for it to be constructed inside and out, in a way that the homeowner will always love the space. We’ve helped many individuals and families secure a home construction loan or receive a favorable mortgage quote that has enabled them to finally have the home of their dreams. Throughout the years, we’ve been able to take a few notes and highlight some home design areas to be conscious of when renovating or building your home.

Your Family’s Life Cycle

Homes need to be flexible and adaptable to the needs of a family. If you have kids running around the house and dogs chasing after tennis balls, it might be best to consider emphasizing open living spaces. Large living rooms and finished basements offer kids and pets plenty of room to play and enjoy the inside of your home. Later in life, your body may have issues climbing stairs – which can become both an inconvenience and a hazard. Keep this in mind and design the main floor of your home to fit your needs as you age.

The Perfect Kitchen

Outside of the bedroom, the kitchen is often the section of the home that people spend the most time in. From socializing to cooking, the kitchen plays an important role in the functionality and livelihood of a home. A few things to consider when crafting a kitchen are to ensure that enough lighting is available: both natural and artificial. Always build more counter space than you think you’ll need – because you will definitely need it. It’s also affordable these days to upgrade from laminate countertops. Stone and solid surface options are more widely used and appealing for your forever home. Additionally, cabinets can make or break the aesthetic of a kitchen, so use your best judgment and design with coloring that will remain timeless.

Think Green, Be Green

We all care about the world we live in, and we all care about our bills. Consider making your dream home as environmentally friendly as possible – lowering your carbon footprint and reducing high costing utility bills. As technology and homebuilding improve over the decades, homes will grow more efficient in how they use energy. Therefore, designing your forever home with the most up-to-date “green technology” today will limit your need to make improvements in the future. Installing energy-saving windows, adding a solar panel or two to your roof, and insulating ductwork will all pay dividends down the road.

The Right Floors For Your Feet

Flooring is a big decision. It is one of the main components of a home’s look and feel. Carpeting is affordable and soft to the touch – great for kids! However, they attract messes and stains and are often difficult to clean. Hardwood floors are loved for their beauty and longevity but often run pretty pricey per square foot. If you do decide to go the hardwood route, pick a harder wood like maple or bamboo in order to protect it from years of wear and tear.

Ultimately, you’ll need to ask, what fits your budget. Depending on the size of your home, flooring costs can eat up a significant portion of your money. Therefore, be mindful of what aligns with your costs right now – flooring can always be updated at a later date.

Windows – Your Soul Needs Them

Natural sunlight is proven to be essential to your physical and mental health. Homes that prioritize the use of natural light, bring the outdoors – inside. These homes also see a reduction in electric costs. Incorporating well-staged windows in the home’s most trafficked areas like the living room and kitchen are important to the livability of these areas. When laying out your dream home, don’t overlook the need to include enough natural lighting.

Ready To Build Your Dream Home? We’re Here For You

By now you probably have a picture of your dream home in your head. You may have even a few 3D sketches drawn up. If so, that’s great! Your forever home does not have to be a fantasy. With a partner like The Callaway Bank, you can make it a reality. We can help with the home construction loan process and guide you on common hurdles. We’re one of a few banks in the area that specialize in home construction loans. Or if your dream home already exists and you just need the right financing package, we can work with you to find a mortgage quote that makes it possible.

By working closely with you and your budget, we can help craft a plan that makes your dollars and cents work toward completing your dream home. We’re here for you and the moments that matter. Let’s build it together.

Click here for more information and helpful tips on using a construction loan to build your dream home.

When the houses on the market don’t measure up to what you’re looking for in a home, building your own can be a great option. With a New Home Construction Loan from The Callaway Bank, you can design your own unique space that’s perfectly suited to your wants and needs.

The opportunity to build your own home to match your specific taste and functional needs is exciting! It’s actually a dream come true for most! So when it comes time to finance this project, our expert Mortgage Lenders are ready to make your home construction journey a breeze. We work to simplify the process as much as possible and provide you with the best lending options to get your new home built and ready for you to move in.

While we can’t say if you should go with brass, silver, or gold fixtures, we can help make your Home Construction Loan process as pain-free as possible.

Understanding a New Home Construction Loan

Many people don’t realize that getting financing for new construction requires two loans: first the construction loan itself, and then the mortgage for the completed house. A construction loan is a short-term, interim loan used for new home construction, and once the house is completed, you work out permanent financing.

Having two loans means double the closing costs, which include the origination fee, appraisal, title work, etc. However, on the permanent loan, we do reduce some of those fees because some of the work is done with the initial construction loan.

For instance, the origination fee is 50 percent of the normal charge the second time around. If completion is within 12 months of construction, we may not have to do a full appraisal and can do a completion certification at a reduced rate. Those things help make the process a little easier for borrowers.

Down payment requirements for New Home Construction Loans are also different from other home loans. We typically lend up to 80 percent of the appraised value on a construction loan, whereas on a purchase of an existing home, we can lend up to 100 percent on some loan types.

The down payment for a construction loan can be difficult for some borrowers unless they have equity in the property they are building on, or have cash in hand. They can also build up “sweat” equity by building the house themselves and saving on labor costs they would otherwise incur as construction labor. This financial hurdle is a large reason some choose to avoid home construction loans and opt for a home loan on an existing home — giving them more financing flexibility. 

How to Know If You’re a Good Candidate for a New Home Construction Loan

When you apply for a loan, the most important things we’ll look at are your credit and debt-to-income ratio. It also helps if you have money set aside in savings, because it’s likely you’ll need to put some of your own funds into the completion of the project.

It makes it easier if a borrower has either been given the land or bought it several years before and paid it off or down quite a bit to build up equity. This can essentially be your down payment instead of cash. Keep in mind that job changes or big financial changes like starting a business during construction are not a good idea, as these can cause problems with the final loan. 

In general, the 28 percent rule exists as a yard marker for individuals looking to obtain a home loan. The rule advises that your monthly mortgage payment should not exceed 28 percent of your gross monthly income. Sitting down and talking with your financial advisor, spouse, or friend, is helpful in mapping out what kind of budget makes the most sense for you, your financial obligations, and your lifestyle. From there, you can then make an informed decision when seeking a construction loan from a lender.

If, after reading this, you think you’re in good shape, you can start the process of applying for a New Home Construction Loan!

Taking Those First Steps

The first step is submitting an application for a Fast Mortgage Quote so we can check on your credit and your debt-to-income ratio. At the application stage or soon after, we will request bids, plans, or estimates for the new home and from the contractors involved. You can’t plan for everything (and borrowers will often make changes during construction), but we try to limit complications by getting all this information ahead of time.

Once you submit an application, you can look at acquiring the land if you do not already own it, and then start on the house plans, bids, and estimates from contractors. Do thorough research and get several bids to be sure you are getting what you expect at an appropriate price. Be sure to find a builder you not only trust but can also communicate with well.

A good relationship can save you from serious problems popping up in the middle of construction. You want to be on the same page with your builder before you break ground. Construction is generally a short-term, interim process and a large investment for the borrower. There can be cost overages, and everyone needs to be prepared for if and when something comes in higher than expected.

As your New Home Construction Loan is approved and the building begins, keep a realistic time frame in mind. Some customers tell us they’ll be done with the house in five months, and it ends up taking an entire year. Finishing a house in even six months is not only an incredibly rigorous timeline, but extremely rare for almost any builder. Things come up with builders, supplies take longer to arrive than expected, weather impacts timelines, and surprises can happen to anyone, so be prepared for setbacks and plan accordingly. 

Real estate is still considered one of the best and safest investments to make. During the pandemic home values across the nation have skyrocketed, and people are just as eager to build new homes as many Americans are currently seeking New Home Construction Loans.

Whether you decide to build a house, or you find a perfect home on the market, we want to help make the process as smooth as possible. Please reach out to one of our Mortgage Lenders or visit our Mortgage Resources Page if you have any other home buying questions. We’re here to help your home-owning dreams come true!

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