Today, many home buyers in Michigan are electing to build their next home instead of buying from the current market. There are many reasons for this. New construction provides an opportunity to build a custom home, of course. It is also becoming more affordable than it has been. Open real estate is available for most home buyers to select from including in some of the most desirable areas of Michigan. Whether you want to build a luxury home or you are looking for a single family starter property, building can be a very good option.
Finding Your Treasure Means Starting with a Loan
The first step in obtaining a new home through construction is to work with your lender to obtain a loan. Loans for new construction projects are a bit different than those for traditional existing home sales. With these loans, the lender will provide set payments to the builder over the first year or so of the home’s build. This helps to ensure the work is being done properly. Once the home is complete, the loan will convert into a traditional mortgage. You will then make payments on the home as your normally would.
Keep in mind that not all lenders will work with all builders. It is important to choose a Michigan new construction builder that you can trust and one that has a solid level of experience in the area. You also need a builder that holds all of the proper insurance and licensing to operate in the state. Your lender will need verification of this information before the process can move forward. You can speed it up by choosing the right builder from the start.
Building a home is an exciting opportunity. There’s much to expect from this process. Yet, before you get started with the process, take a few minutes to consider who you plan to work with. In Michigan, new construction should be done with an experienced, trusted builder.
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