Residential Builders Mortgage
Building Options
These are just some of the options available to borrowers wanting a Builders Mortgage.
1. Qualified Builder
Having your new home built by a qualified new home builder provides peace of mind by acquiring the expertise of the builder at often a fixed contract price. Some builders offer added peace of mind even after your home is built through a new home warranty plan.
Steps to Build Your Dream Home:
Step 1 - What's needed?
We can help you obtain these items.
Signed & accepted copy of building contract.
One complete set of house plans and working drawings (blueprint).
Step 2 - A Market value of new home to be built
An appraisal of new home to be constructed will be obtained. Appraisal may not be required if the builder is a member of a recognized warranty plan.
Step 3 - Build Your New Dream Home!
2. Self - Builder
If you have good knowledge of the home building process you can act as your own general contractor to oversee and build your new home. Arranging and overseeing the construction of your new home does require expertise and a great deal of time. However, there can be pride achieved through more direct involvement and it eliminates the contractor fees.
Steps to Build Your Dream Home:
Step 1 - What's needed?
We can help you obtain these items.
Copy of land contract if land is being purchased or copy of land title if owned.
One complete set of house plans and working drawings (blueprint).
Completed Cost Projection for New Home Construction.
Directional map to property.
Step 2 - A Market value of new home to be built
An appraisal of new home to be constructed will be obtained.
Step 3 - Build Your New Dream Home!
Your Home is built in Stages...
...Your Mortgage is also advanced in Stages!!
When the construction of your home has progressed to an appropriate stage, a portion of your mortgage may be advanced to pay for the work completed (subject to a lien search of the title). An inspection may be required prior to an advance of the mortgage to ensure the work has been completed. Listed below is just an example of a standard mortgage draw.
- Pre-construction (if necessary)
A portion of the mortgage may be advanced prior to commencement of construction to pay a portion of the land price.
- 1st Progress Draw
Basement ready for backfill
16% of approved mortgage advanced
- 2nd Progress Draw
Interior ready for drywall
33% of approved mortgage advanced
- 3rd Progress Draw
Drywall installed and taped
26% of approved mortgage advanced
- 4th Progress
House completed
25% of approved mortgage advanced