If you’re looking to build a custom home in Texas, you’ve probably been spending a lot of time researching the details. Questions such as what builder you should hire, the square footage of your home, what building materials you should use, what floor plan would be best, and the location you should choose are all on your mind.

While you research these items, it’s also critical that you consider your finance and mortgage options. The process of building a custom home is a little different than buying a prebuilt home, and your finance and mortgage planning will also look slightly different.

Maykus Homes is a Dallas-Fort Worth, custom home builder with decades of experience. To help you carefully weigh your finance and mortgage options, we’ve assembled the information below to help you make the best decision for you and your family. Read on to learn more!

Your Down Payment

The down payment you use for your custom-built home is vital to financing, much like buying a prebuilt home. This isn’t drastically different from what most homeowners expect, but it’s important to note that the down payment will likely be higher. Most financial institutions prefer 25% down.

The reason is fairly simple: they want to ensure you have skin in the game. Abandoned custom-built homes cost builders and financial institutions a lot of money, so requiring more downpayment upfront lowers the risk. Be sure to factor this into your budgeting as you prepare for your custom-built home project.

While most financial institutions prefer 25% down, Maykus Homes has experience negotiating better rates that you might qualify for depending on your unique situation. If this interests you, get in touch with our team today – we would be happy to see if this is something we can do for you.

Different Types of Loans

There are a couple of ways to finance your custom-built home in Texas; each could be a good fit for you, depending on your unique situation.

 

  • Will you need to transition to a permanent mortgage after construction is complete?  If you have both a construction loan and a permanent mortgage loan, a one-time close loan could be an enticing option to consolidate the two loans into one.
  • Do you own your land? If not, a land loan could be a reasonably straightforward way to ensure you have the lot you need. If you own your lot, then that’s even better!
  • Are you looking to finance just the construction of the home? We recommend looking for a local institution if that is the case. Smaller local and regional banks are more aware of local market conditions and offer more flexible terms.

 

Find a Qualified Builder

Partnering with a qualified builder is an integral part of building your very own custom home. The right builder can make or break the homebuilding process; your financing is no different. Financial institutions will want to see that you have a qualified and experienced builder on your project.

We’ll discuss this further, but most financial institutions will also want to see detailed project plans and timelines since building a custom home is a dynamic process. The more tenured your custom home builder, the easier it will be for them to supply a detailed blueprint and project plan.

Come Prepared

You must come prepared if you are speaking to a financial institution for a mortgage. The institution will need to ensure that you’re qualified for the loan you’ll be given, and they will have some general questions and procedures to follow. This ensures you receive the right loan for your unique situation. You’ll find this may vary from institution to institution, but be prepared to bring:

 

  • The last few years of tax returns and W9s/1040s
  • The last few years of corporate tax returns, if applicable
  • Driver’s license for all borrowers involved
  • Your most recent pay stubs
  • Contact information for preferred homeowner’s insurance
  • Pertinent investment information
  • Any relevant legal documents (child support order, divorce decree, etc.)

 

Specific blueprints, detailed budgets, and timelines for your project can also make this step of the process easier, all of which are items that Maykus Homes will provide to your financial institution.

Custom-building a home can take time, and the financial institution will want to ensure that your builder has the plan, details, and execution to deliver your home on time, within reason. Poor documentation and non-compelling submissions by your builder could lead to your construction loan being rejected, so your home builder must do their homework when submitting for a construction loan. The future of your project depends on it!

Partner With Maykus Homes 

Choosing the right custom home builder makes the entire process much more manageable. When you’re looking to build a custom home, you need to know that your homebuilder is simply the best. You’ll have enough to worry about as you build; don’t let a nagging doubt that you picked the wrong homebuilder be one of them. That’s where Maykus Homes can help you!

We’ve been building custom homes throughout North Texas and the Dallas-Fort Worth area for decades and would love to add your home to our list. Our expertise, attention to detail, and experience in the space ensure that your home will be on time and within budget. Call us now to begin building your dream space!