Building your dream home can be a daunting task, especially if you are a first-time homebuyer. The excitement of owning a brand-new home, customized to your taste can quickly be dampened by the realization of the financing process. New construction financing is not the same as a regular mortgage, and as such, there are a few things you need to know before beginning the process. In this post, we will explore everything you need to know about new construction financing and loan options, so you can have a smooth and stress-free homebuilding journey. In this blog: Understanding the New Construction Loan Process Types of Construction Loans How to Qualify for Construction Loans Tips for Choosing the Right Lender Additional funding options 1. Understanding the New Construction Loan Process: Firstly, let’s define how construction loans work and how they differ from regular mortgages. Construction loans are short-term loans designed for financing new builds. They exist to cover the expenses of building or renovating a home, from paying contractors to buying materials. As you might imagine, building a house involves many steps. During the different construction phases, contractors require payment, and this disbursement is made from the construction loan. Later, once the
