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Building Our Custom Home |
| CONSTRUCTION LOAN CONSIDERATIONS A couple of days ago the crawl space was leveled out, the dirt from the excavated footings has been pushed to the block to create a slope away from the house (to divert water away) and the garage has been filled with crushed rock in preparation for cement to be eventually poured. Because the foundation walls are complete, the building loan will now kick in. At certain steps along the building process, the builder will let the bank know that it has been complete and the bank will inspect the property and then send a check to our account and we will pay the builder. Most builders either get the loan themselves or even if the owner gets their own loan (like we did) they try to set it up where the bank gives them money directly. I think that is a bad idea. Whoever controls the money, ultimately controls the process. Since we write checks to the builder, that makes sure that he is doing everything according to our satisfaction or he doesn't get paid. An additional potential benefit of you getting your own construction loan is that it might allow you to lock in on a permanent interest rate now which will protect you should rates jump way up by the time your home is complete. **************
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