Let Us Finance Your New Home!
One of the major benefits of choosing RC Dent is the many options we have for your new or existing construction financing. We have the resources to help you find & secure the funding you need to build your Dream Home. Our Senior loan officer is always available to answer any questions & help you along the way to your new home.
You may have purchased a home before, but obtaining financing to build a home is a very different beast. Basically, there are 3 parts to new construction. First, you need a lot. Second, you will need a construction loan, which provides the money on an as needed basis to finance the cost of the home. Last, when the home is completed, you will take out a permanent loan that will pay off the construction loan and be the loan that you live with for your time in the home. There are 3 ways to finance a new build and we’ll discuss each of those below.
Use Your Own Lender
Different banks offer different products: you can shop rates, down payments, and the length of the loan. You can go to the bank and get a construction loan for a period of time from 4 months on up. The interest rate on a construction loan is higher than a conventional loan, but you typically are only paying interest on the money used at that time. There is a down payment required, and the amount will depend on the bank. RC Dent will require a 7% earnest money deposit to build in this circumstance.
Use Our Preferred Lender
By using RC Dent’s preferred lender, Marci Pipes, you will have a lower earnest money deposit. RC Dent typically requires a 7% deposit prior to construction, but if you use our in-house lender, it’s only 5% down. Another benefit is that you will get to move into your home a couple of days earlier; as soon as paperwork is signed instead of waiting for it to record. Finally, with another lender if there is a delay in closing, you will be charged a daily rate until closng. With Marci, there is no fee charged for delays.
RC Dent Provides Financing
In this instance, RC Dent will purchase the lot and provide the construction loan. The earnest money deposit will depend upon whether you use the preferred lender or an outside lender. You only need to obtain the permanent loan at the completion of the project. This greatly simplifies the building process.