Build Your Dream Home with the Right Mortgage

  • October 26, 2022
  •   •  
  • 4 min. read time
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Deciding to take the leap and build your dream home can be challenging. Especially in today’s market with higher mortgage rates, inflation, and a shifting housing market. However, as supply chains begin to open up and construction begins to grow again, it might be a good time to start dreaming again.

These past few years have given many of us the opportunity to take stock of our lives and move toward what’s important. All over the country, the housing market continues to shift as people decide to buy a first home, refinance a home, relocate to a new area, or build a dream home as their new forever home. If you’re looking to build your dream home, you’re not alone.

The truth is, financing your dream home from the ground up can feel overwhelming, but an experienced mortgage advisor can guide you through the entire process with ease.

Whether you’re buying land, planning construction, or starting to build, take the first step and connect with an advisor who can help you get the best financing and guide you through every step.

If you’re thinking about building your dream home, these considerations can help you cross the finish line.

Top Benefits of Building Your Dream Home

1. Avoid bidding wars and competition in the housing market.

Okay, let’s face it—you could end up in a bidding war for the best contractors in the area. But when you decide to build a home, you get to set the timeline and plan construction around your lifestyle. You won’t have to compete in a bidding war or make multiple offers on a home only to watch your dream home slip away. 

If housing prices in your desired location are jumping up, you can rest secure. Whether the housing market shifts or not, you won’t have to worry about the competition. Your dream home could already be in construction with financing secured.

2. Build a dream home to match your lifestyle and your values.

This is obvious but worth mentioning. When you buy a house in 2022, there might be a dozen things you want to change about the house once escrow closes. Updates and changes require more financing and more decisions.

Building your own home allows you to create every detail. Face the master bedroom toward the sunrise, set dual fireplaces in the living room, or build out a home office to include every tech tool.

You can build your dream home to fit your lifestyle, your work, your family, and your future. It’s also a smart move to get financing approved early to keep things moving forward.

Talk to a mortgage advisor today if you’re ready to build your dream home. An experienced mortgage advisor can start the process quickly and help you lock in the lowest rate possible. What’s more, they’ll uncover hidden opportunities and custom mortgage financing that will meet your immediate and long-term financial goals.

Use this mortgage calculator to see how much you can afford

3. You can build your dream home with custom financing before you start to build.

An experienced mortgage advisor can guide you through the process and help you secure financing before you start to build.

Construction costs can vary widely, but there are a number of custom loan programs that can set the stage for success. Most new construction is priced per square foot and based on the location where you want to build. . Finish work and details will vary dramatically though, so be sure to consider the following:

  • General Construction (avg. price per square foot)
  • Plot / Land – market rate for the area
  • Level / Clear the land
  • Foundation
  • Framing
  • Plumbing, HVAC, electrical
  • Exterior – windows, roofing, driveway
  • Interior – bath/kitchen, flooring, cabinetry, appliances
  • Landscaping – soft scape, plants, patio, pool, kitchen
  • Blueprints – design and architectural
  • Building permits

Costs will vary widely depending on your style, quality of materials and preferences. Labor costs can also vary greatly based on who you hire.

Connect with a local mortgage advisor who can recommend custom financing so you can build your dream home with a steady plan that meets your financial goals.

A few considerations before you build your dream home.

1. Buying a home instead of building a home can be a simpler process.

Buying a home can be much easier than building a home. The costs and fees will vary based on the area, but getting a fast pre-approval for a mortgage can help you stay competitive. High-cost areas are still very competitive, so be patient in your search and talk with your realtor about the best strategies.

The upfront costs are fairly standard. And getting a mortgage pre-approved can relieve stress, so you don’t have to worry about financing falling through. In general, the upfront costs to buy a house are predictable:

  • Earnest money down
  • Down payment
  • Mortgage points (if applicable)
  • Property taxes
  • Private mortgage insurance (if down payment is < 20%)
  • Homeowners insurance
  • Closing costs (loan fees, mortgage points, appraisal, title insurance)

RELATED: Talk with a local mortgage expert to get preapproved for your best mortgage

2. Move-in schedule is predictable when you buy a home.

Typically, escrow closes on a new home within 30-45 days. Often this means new homeowners can move into a new home in less than 60 days from the day an offer is accepted.

Scheduling the move to a new place can be a lot of work, but it’s a sprint to the finish line.

RELATED: Learn the Truth About No-Closing Cost Loans

Next Steps

If you’re ready to take action and build your dream home, we can help you get the right financing to help you reach your homeownership goals. There are dozens of options and custom loans available to meet your dreams. Whether you’re ready to buy land, secure an architect, or start construction, we can help you get the best financing. Connect with a local mortgage advisor to discuss your goals. The right home loan can help you build financial security and save money on your mortgage. We’d love to help.

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THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT'S WEBSITE AT WWW.SML.TEXAS.GOV