We know the housing market is on fire in West Michigan! And with a tight inventory, you may be looking to build. We’ve featured several builders over the past few weeks, and today we’re switching our focus to how to finance that big project. We have Andrew Clarkson from Lake Michigan Credit Union here with some tips.
Here are 5 things you should know when financing your custom built home.
Know your Credit Score – by finding out what your credit score is, you’re able to take steps to either maintain or improve your credit score. To get the best rates, a FICO score of 720 or higher is ideal.
Save Up for at least a 5% down payment – At Lake Michigan Credit Union, they have multiple lending solutions to fit your needs – including low-down payment options.
Get pre-qualified – Knowing how much you can afford is important – a LMCU Loan Officer can walk you through the process and build a construction loan specifically for you.
Budget more than expected – Finishing costs are often overlooked. These include things like landscaping, a mailbox and a fence. It’s typically recommended to allocate an extra 15-25% for these kinds of extra costs. By budgeting a little extra, you’ll be prepared for any unforeseen expenses.
Connect with a builder that fits your sense of style – Consider their credentials, references, past work, style, personality and price.
- Contact a loan officer
- Visit: LMCU.org/Mortgage
- Call 1-844-754-6280
- Stop by a local branch