The Insider's Guide to Custom Homes Episode 5: Financing Your Home
May 16, 2025
Discover the ins and outs of financing your custom home, including the pros and cons of paying cash versus taking out a loan. Learn what to ask when picking a lender and the key documents needed for approval. Uncover how construction loan draws work and the distinctions between one-time close loans and refinancing. Get tips for staying organized throughout the loan process, ensuring a smoother journey toward your dream home!
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Choose Experienced Lender
- Favor lenders experienced in custom home construction over those focused on production homes.
- Interview lenders thoroughly about their construction loan process and communication style.
Cash Isn’t Always Simple
- Cash payments simplify the process by avoiding loan approvals and inspections.
- However, even cash buyers often finance part of their project to preserve liquidity or for tax reasons.
Interview Lenders Like Builders
- Interview lenders about their construction loan experience and draw schedules just like you would builders.
- Choose lenders who communicate clearly and are accessible throughout the build.