New Construction and Infill Financing
Building your dream home is really exciting. Whether its your first home, or you are looking to move up, building a new home involves a little more in the mortgage planning department than purchasing a preowned home. Things to consider include:
**Your down payment – will it be coming from the sale of the home you currently live in?
**Is the builder you are working with requiring a COMPLETION mortgage or a DRAW or PROGRESS mortgage?
*How long will it take your builder to complete the home and/or require a first draw (if applicable)
**Are you purchasing a lot first, then having a home built on it? Or, is the lot and build altogether?
Infill Financing is a more indepth process. The questions to answer at the beginning include:
**Do I need to demolish any structures existing on the property?
**If I currently live on the property, where will I live while the new home is being constructed? Is there a mortgage currently on this property? If I demolish the current structure, will I be in breach with my current mortgage lender?
Working closely with your builder and your mortgage professional at the beginning of the process can make the process smooth – leaving you to think about the more fun parts, like designing and decorating your new home to be!
For a little more info on the “first steps” of infill construction, check out my video https://www.youtube.com/watch?v=m32qJ7M-YiQ&t=4s