Building your own custom home is an exciting process. For a successful first-time custom home build, it requires a lot of planning, research and financial commitment. One of the most important steps in the process is finding a reputable builder that can bring your dream home to life. Another critical step in the process involves having the right financing in place, and understanding how construction loans work. Having the right lender in place can make all the difference.
Construction loans are short-term loan investments made by lenders for building custom homes or remodeling existing structures. They usually have higher interest rates than traditional mortgages and work differently than traditional loans because they are advanced in stages as certain phases of the project are completed. The borrower typically makes interest-only payments during each stage of construction, until the loan is fully disbursed at which point it converts into a regular mortgage with fixed monthly payments over a set period of time.
When seeking out financing for your home build, it’s important to do your due diligence when researching lenders and comparing different loan options available to you. BankSouth offers competitive rates on construction loans, so is worth considering if you’re looking for financing in Georgia or South Carolina. Working with an experienced lender like BankSouth means you’ll have access to lending professionals that understand the nuances of construction lending and can help guide you through the entire process from start to finish.
Using a local community bank, like BankSouth, to obtain a construction loan is a smart decision for many reasons. Local banks often have a better understanding of the local real estate market and can offer more personalized service than larger, national banks. Since decision-making at community banks are made locally, they may also be more willing to work with borrowers who have unique or complex financial situations. Working with a local bank helps support the local economy and build relationships within the community. BankSouth also offers multiple financing options to fit your unique needs and budget. In addition to construction loans, BankSouth offers lot and land loans. This means that no matter what stage of the home building process you’re in, BankSouth has a solution that can help you achieve your goals. With competitive rates, flexible terms, and exceptional customer service, BankSouth is the right choice for anyone looking to finance a new home construction project in Georgia and South Carolina.
Finding the right builder is just as important as securing financing when embarking on your first home build. Knowing what kind of builder will best meet your needs depends on what type of home you want to build and how much customization you will want completed during the building process. Start by doing some research on local builders in your area who specialize in custom builds; many offer free estimates so you can get an idea about cost before committing to any one particular contractor. Once you’ve narrowed down potential candidates, do some additional digging into their past projects and customer reviews so that you can make sure they have a track record of success before signing any contracts or making any payments. Often times, your BankSouth lender can suggest the right local contractor to consider as the builder of your dream home.
By following these tips, you’ll be well on your way to a successful custom home build!
Building your own custom home is an exciting endeavor but it’s also an investment that requires careful consideration and planning beforehand to ensure success. Securing a construction loan from an experienced lender like BankSouth will give you peace of mind knowing that there are professionals backing up your investment every step of the way while helping guide you through obtaining financing and selecting a reputable builder who will bring your dream home to life!
With these tips in hand, take comfort in knowing all will go well and you’ll soon be enjoying living in your very own custom-built space!
Get an inside look at what it’s like to work with BankSouth from other customers, just like you by checking out our success stories. Good luck, and to start discussing your construction loan with BankSouth, connect with a lender by filling out this online contact form.
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