Building the home of your dreams is an exciting time. You can create a space designed to your exact tastes and specifications, from the size of the living room to the color of the kitchen walls. But just as a solid foundation is important to any well-constructed house, financing is an important piece of the construction process. Read this guide to make sure you have everything you need to get started.
1. Get Clear on Your Vision
The more clearly you can define your goals, the closer you are to finding the financing that will work best for you. What are your priorities – are you hoping to live in an existing neighborhood? Are you prioritizing storage space? How much are you willing to invest in high-quality finishes? This is an important first step in creating your budget. Read this article for more details on cost considerations.
2. Set Your Budget and Get Pre-approved**
Once you’re clear on your budget for your build, you can get pre-approved for a loan with us. Pre-approval establishes how much you’re able to afford and demonstrates to builders and contractors that you’re serious about your project.
3. Gather Your Documents and Apply
Once you’ve selected your builder, Newrez will work with you to finalize your loan application. We need certain documents such as pay stubs, tax returns, bank statements, and records of outstanding debts. If you’re pre-approved, much of that information will already be prepared. File your application and we’ll keep you updated.
4. Stay In Touch During Construction
At each stage of the construction process, you’ll want to stay in communication with your builder to track significant milestones like foundation work, utility installation, and final finishes.
5. Monitor Your Finances
During the loan approval process, it’s advisable that you avoid making major financial changes that could impact your loan approval, such as taking on new debt or making large purchases.
6. Final Walkthrough and Loan Approval
Once your home nears completion, you’ll typically do a walkthrough with your builder to make sure everything falls in line with your expectations. Within this timeframe, we’ll finalize the underwriting process and prepare to close your loan. If changes come up during the walkthrough, we’ll work expeditiously to make get the timeline adjusted.
7. Closing
On closing day we’ll talk you through the signing of final paperwork. When the loan is finalized, we’ll distribute the funds to the builder, and you’ll be ready to celebrate in your new home!
Throughout the process and after closing, we’ll be glad to answer any remaining questions you have about your loan. We’re committed to being there for you through each step in your homeownership journey.
Looking for a loan for your new build? Newrez has options that fit your circumstances. Get started today.
