Get Preapproved

Have a financial institution appraise what you can afford.

You’ll have to have a bottom line in mind before you even begin to look at lots and land upon which to build your new custom home.

 If you don’t have a lender in mind, we can share the contact information of lenders that we have worked with over the past 16 years. Contact our office www.sylviamclain.com  for a list of local lenders experienced with lot and land financing - there are plenty of great options available.

NOTE:  When making your application remember that debt to income is very important as well as your credit scores.  Be prepared to provide your income and expense information.  We recommend that you shop your loan, but in the process that you do not allow more than one lender to run your credit scores.  Once the first lender runs your credit scores, request a copy of the reports for your records, provide a copy of your credit report tor other lenders.

Talk with financial professionals about your total "construction and land" affordability.  Here are the questions you’ll need answered:

• What monthly payment can I afford?
• What total amount do I qualify for?
• Will my payments be affected if interest rates increase or is my rate fixed for the term of the loan.
• How does the financing and closings work for the purchase of my lot, the home construction loan, and converting all into permanent long term financing? 
• Does the construction loan convert into permanent financing with no additional closing cost?

What about Property Taxes, Home Owners Insurance, & HOA Dues?

Depending on the specifics of your loan, property taxes and/or home owner’s insurance may be included in your monthly payment. If it’s set up this way, a portion of the total tax bill and/or your home owners premium are added to your monthly payment each month.  This is referred to as escrow funds. The lender then pays the city and/or parish at the end of the year out of your escrow account. 

Home Owner’s Association (HOA) Dues can be applicable when purchasing land within a neighborhood.  HOA Dues cannot be included in your monthly loan from a lender therefore you should always ask what the HOA dues are and be prepared to pay this amount outside of your note.  Individual neighborhoods have different options so be sure to ask your realtor or the person you are purchasing your lot from about the Home Owners Association and who you should contact for more information.

You’ll need to ask these questions in order to be prepared for your true monthly cost and figuring your home purchase budget.