Estimated read time: 4-5 minutes
Most people have heard that the most important rule of real estate is choosing the right location. But finding the perfect spot for what is typically the biggest investment of most people's lives is just the first step in the journey.
If you want to build your forever home, here are some things that can help make that dream a reality.
Securing your lot
It's important to consider your lifestyle when choosing a lot, a Bankrate.com article explains. "After all, this lot will be the foundation of your home — and will represent a big chunk of your total expenses, typically 25 to 35 percent of your final home value."
Goldenwest offers improved lot loans with competitive rates as low as 6.5% (7.055% APR) and subject to change at any time. An improved lot is one that has been improved and ready for home construction. With a 30-year term and a three-year call, Goldenwest lot loans require a minimum 20% down payment.
As an added incentive, once you are ready to build, half of the origination fee on the lot loan will be credited towards your Goldenwest construction loan.
Exploring financing options
Researching and selecting the right financing option is crucial for the success of your project. Goldenwest offers expert guidance on two construction loan options tailored to suit your needs:
A one-time close construction loan enables you to secure a commitment and an interest rate with your long-term financing at construction closing. With the one closing, you will pay only one set of closing costs, however, construction must be complete within a 12-month period. The interest rate and loan amount are locked in during the construction term. Upon completion of construction, the loan converts to a long-term mortgage and monthly payments begin. Goldenwest currently offers one-time close construction loans with a 7/1 of 5/1 Adjustable Rate Mortgage with no mortgage insurance as low as 6.875% with a 7.743% APR.
A two-time close construction loan allows you to apply and qualify for a construction loan and a separate long-term mortgage. Once the construction on your home is completed, your construction loan will be refinanced into a new, long-term mortgage. The refinance offers you the flexibility to choose the mortgage product, term, rate and loan amount.
Whichever loan option you decide on, your Goldenwest mortgage expert can help. Goldenwest currently offers two-time close construction loans as low as 6.24% (8.484% APR) and subject to change at any time.
Designing your home
Delve into the exciting process of designing your dream home with Goldenwest's expert advice. Consider factors like home style, size, and special-purpose rooms to personalize your living space. Your lot's characteristics and any applicable regulations, such as covenants, conditions and restrictions might also influence your design choices.
Selecting the right builder
"You should shop for your builder as carefully as you shop for your home," the National Association of Home Builders advises. "Whether you are buying a condo, a townhouse, a house in a subdivision or a custom-built house, you want to know that you are buying a good quality home from a reputable builder."
Goldenwest provides guidance on evaluating builders, gathering referrals and asking the right questions to ensure you find the perfect match for your needs.
Finalizing builder contract and cost breakdown
After you decide on a builder, finalize the contract and cost breakdown to ensure transparency and clarity throughout the construction process. Goldenwest has experts who can provide advice on budgeting for contingencies and understanding profit arrangements.
Closing your construction loan
Navigate the closing process with ease as Goldenwest assists you in gathering necessary documentation and obtaining building permits. The appraisal process ensures your project aligns with market values, setting the stage for loan approval and closing.
Construction completion
Stay informed and engaged throughout the construction phase with regular updates from Goldenwest. Monitor progress, manage draws, and prepare for the transition to your long-term mortgage as your dream home nears completion.
Preparing for your move-in date will go without a hitch with experts from Goldenwest guiding you every step of the way towards turning your dream home into a reality.
