Home Construction Tips

After you've identified your future home site, you can begin planning for your home construction.

Choose a reputable builder – There are many options for home construction and many different builders. Some builders offer turnkey contracts, while others offer contracts that are more open to interpretation. Contracts that don't address all aspects of construction can create additional costs and headaches during construction, especially if some items weren't considered upfront.

Think about cost overruns – Unfortunately, when it comes to constructing a home, things don't always go as planned. What happens if the excavator hits more rock than expected? What if you change your mind about the kitchen layout or decide you want to upgrade your counter tops after construction has already started? Those possibilities and more speak to the importance of setting some money aside for unanticipated issues.

Financing your home construction – After selecting your contractor, the next step is securing financing for your project. AgChoice offers one-close construction loans. You borrow to pay for construction. When you move in, AgChoice converts the loan balance into a permanent mortgage without another loan closing. It's two loans in one, saving you money and time.

What can you afford? – When considering your construction budget, consider the following questions.

What is the most you would be comfortable with as your monthly payment?

If applicable, do you have cash reserves to make two house payments?

Understanding the Closing and Draw Process – After a review of appraisal and title work, lenders will schedule a closing date. Lenders will need evidence of builder's risk insurance to cover the construction period prior to closing. Insurance protects you against theft, fire, weather damage or vandalism of materials on your property.

After closing, AgChoice will help manage disbursements with your contractor and perform on-site inspections as needed. Fast disbursements and personal knowledge of the project help ensure construction is completed on time.

About AgChoice

AgChoice Farm Credit specializes in providing farm and country property loans and financial services to help Martinsburg customers.

To learn more about AgChoice, call (814) 793-3783 or visit AgChoice.com.