Purchasing Your New Custom Built Home: Your Mortgage Guide

Whether you’re looking to make a first-time
purchase, refresh an existing home or simply
leverage built-up equity for other reasons, it’s
important to figure out which path is right for you
and understand the lending options available.

First Time Buyers

First-time buyers must start with determining
what is affordable. In addition to the mortgage
payment, housing costs will include property
taxes, homeowners insurance and fees, such
as homeowner association dues. Altogether,
costs should be no more than 28 percent of
monthly gross income and should leave room
to continue servicing other debt, such as student
loans, credit cards or auto loans.

Pre Approval

When preparing to buy a home, work through
credit pre-approval to be ready with a strong
offer when the opportunity arises. A mortgage
originator can provide a variety of lending options
to optimize your investment, from 15- and 30-
year mortgages to fixed and variable terms.

Home Equity

If planning to make some improvements to a
much-loved residence, consider financing the
updates through a home equity line of credit
(HELOC). Eligibility depends on how much equity
has been built up in the home and the lender’s
loan-to-value ratio.

Another option for financing a project through a
home’s equity is a home equity loan (HELOAN).
As with a mortgage, the loan is granted as a
lump sum and is paid back in installments over
time, typically 10-15 years and at a fixed rate
locked in at the time of securing the loan.

Remember to consult a professional for advice
applicable to your specific situation. Start with
a lender who can help you identify financial
options available to homebuyers and owners
today. With careful planning and budgeting, the
financing you need may be well within reach.