When it comes to your new home, financing will certainly be an important aspect, but we don’t want it to become a burden. At Wieland Builders, we’re clear with requirements and expectations upfront, which means you can be comfortable and feel assured throughout the entire building process.
Please read below to learn more about our financing process:
- Financing Approval Amount
In order to give you peace of mind and assurance from the very beginning, we’ll need to understand the amount you’ve been approved to borrow, and we do require pre-approval by a local bank.
- Construction Loan
Fortunately, even in today’s market, Wieland Builders still has the ability to carry the Construction Loan, with which most builders today burden the homeowner. This means that we take all the risk, all the stress, and manage all for the finances for the build on your behalf.
- End Loan/Mortgage
The End Loan is the Mortgage on your home. End loans/mortgages allow your bank to pay the parties involved in building your new home, including Wieland Builders, while you pay the bank gradually over a fixed time span, typically 30 years. Outlined below are the key factors you should consider when determining your mortgage bank of choice:
- Mortgage Rate
The Mortgage Rate is interest you will pay on your end loan. A fixed-rate mortgage (FRM) retains the same interest rate throughout the life of the loan. With variable-rate or adjustable-rate mortgages (ARM), the interest rate will adjust periodically during the the loan term. While many people believe that the Mortgage Rate is the most important thing to consider, it’s important to also factor in closing costs, location of the bank, overall competence of the loan officer, your builders’ relationship with the bank, etc., as these items also have significant impact on your mortgage.
- Closing Cost
Costs involved with the closing of your new home, such as attorney fees, application fees, and many others, are considered Closing Costs. As you shop around for a mortgage, request a “Good Faith Estimate” from each bank you’re considering. This estimate should include your complete closing cost. Banks will offer different rates and closing costs, which means that a lower interest rate might be outweighed by high closing costs. In any case, a good faith estimate will help you understand complete costs up-front.
- Bank Location
While it might seem like a minor consideration, Wieland Builders prefers to work with local banks with long-standing relationships within the community to ensure stability and to allow in-person discussions and closings. Wieland Builders does not accept online/internet approvals of bank loans.
- The Loan Officer
With you, the homeowner, and Wieland Builders, your builder, entering into a partnership for your home build, it’s important to have confidence and trust in the loan officer on your mortgage. There is a lot at stake for both you and Wieland, therefore, look for a loan officer with experience and credibility.
- Bank Credibility
Building a home is a significant investment and commitment, for both the homeowner and the builder, and the chosen mortgage bank not only plays a significant role in ensuring that financial experience of the home build runs smoothly, but that it is successful. In addition, it’s important to consider the availability and experience of the bank and the selected loan officer, because they are responsible for processing a significant amount of information. Should the bank be uncooperative or inefficient, everyone involved (you, the builder, the buyer of your current home, etc.) might end up with the headache of changing closing dates, additional fees and missed opportunities. Wieland Builders uses Union Savings Bank to carry our construction loans, and recommends them for your end loan, as well. Third Federal Savings and Loan is another area bank that many of our customers have recommended. Both banks are individually owned and operated, have a multiple locations and employ excellent loan officers. Wieland Builders does not receive any incentives or discounts to recommend either of these financial institutions, but promotes them because of their credibility and accountability.
- Mortgage Rate