After attending the Parade of Homes and mentally piecing together your ideal home; after spending countless hours on Pinterest and Google poring over new floor plans, granite vs. quartz countertops, and eco-friendly homes, you’ve officially decided to build your dream home.
Congratulations! Now what?
Your first step shouldn’t be into the kitchen and bath showroom, it should be into a financial institution to secure funding. Whether you choose ECCU as your construction loan partner or go with another lender, it’s important to understand the process and find someone who can help you navigate the ins and outs of your construction loan.
Step 1. Get pre-approved. This allows you to establish the budget for your new home. At ECCU, it’s a quick and easy process that begins with a phone call or email to our mortgage loan officers who will have you complete a pre-approval application and set up an appointment to meet – whether it be face-to-face or over the phone if it’s more convenient. Case-in-point: George and Erica Dudik lived over 40 miles away from the nearest ECCU branch and never visited a branch during their lending journey.
Step 2. Select a qualified builder. If you don’t already have a builder in mind, contact the local Home Builders Association for a list of licensed general contractors your area. Interview several builders and contact their references. Make sure they understand your needs and wants clearly, and are flexible with their client’s changing needs. “We made a few changes along the way,” said ECCU member and first-time home builder Erica Dudik. “It was great to have a builder that was willing to work with us.”
Step 3. Final approval & One-Time Close. When you’ve selected your builder and decided on your home, you’re ready to close on your loan! With a one-time close construction loan, your loan automatically converts to permanent financing once construction is complete. This saves time by not having to take time off work for another trip or call into the credit union for additional document signing, and also saves you money by not requiring additional closing costs. After your construction loan has been approved, you should not apply for any additional credit.
Once your construction loan is closed, the fun begins! “As first-time builders, we were unaware of the process,” admits Erica. “ECCU has been extremely attentive, patient, and helpful as we worked on selling our home and transitioning to a construction loan. Their staff are friendly and competent, and their service has been outstanding.”
Thinking about building a home?
Call 269.544.3105 or email to connect with a mortgage originator and get the conversation started today.