Financing a new construction coastal engineered home is very similar to financing a traditional new construction stick- built home.
The first step in building your dream home is to obtain a home mortgage prequalification which will enable you to know how much purchasing power you have.
Once a site and home design have been decided, you will be ready to start the formal application process.
Once the bank is satisfied with the information you have provided regarding your mortgage, you will be provided with a formal commitment letter. This letter will state the exact amount the bank will provide you.
With your mortgage approved, you will need to set up a disbursement schedule outlining when and how much money will be given to each vendor. These disbursements will cover various phases of the home building process including items like the clearing of land, building the foundation, building of the components, delivery of the components, finishing work, etc. Typically, an inspection is needed to prove the work has been completed and no vendor has placed a lien on your new home.
Upon agreement of the disbursement schedule with your bank, you will be able to close on your loan. This is when you and the bank will sign the final loan documents and you will pay any closing costs.
Now that the final loan documents have been officially signed by you and your bank, the construction of your new precision engineered home will commence. As indicated earlier, disbursements will be made from your bank throughout each phase of construction to each vendor involved in the build process. Typically, you will start making mortgage payments on the amount of money disbursed to your vendors. This total will increase as each phase of construction is completed.
Once construction is complete on your new home, your mortgage will transfer from a construction loan to a permanent mortgage. To complete this process your home will be appraised to ensure the value of the home is correct, all work has been completed, and no liens have been placed on the property or structure. Payment of a transfer fee is often times required at this stage as well.
Once these steps are complete, you are the proud owner of a new high-performance coastal home from CapeBuilt!