Call us at 952-942-0110 At Home

Building Your Dream Home: Where to Start


Many people dream of being able to design and build their dream homes to their exact specifications. Building a new home can be a dream come true, but it can also have its challenges. Read on for more information about building your dream home and construction loans.

Where Do I Start?

When deciding to build a new home, many people wonder where to start and how all the pieces come together. One of the first steps is to meet with your mortgage consultant to discuss financing options and know what you can afford. Just like with existing homes, you want to have your financing in place before you start shopping to ensure you are comfortable with the options and your final monthly payment.

Construction Loan Options

During your meeting with your Cambria® Mortgage™ consultant, you will discuss the two main options for construction loans, both of which have their benefits. The first option allows for one transaction at the start of the project and an appraisal of the final home value. This option generally has lower closing costs since you only close once, however, if there are any changes or overruns during construction, those would need to be paid in cash, limiting your flexibility. The second option has two transactions during the construction, but allows for a little more flexibility in the case of changes to the plans that may come up during construction since those can still be financed with the final transaction. This option may also allow for a smaller down payment. Both options can be beneficial and your mortgage consultant can help you choose the right fit based on your unique situation.

Choose a Builder

Depending on the area you are looking to build, you may find a lot owned by a certain builder or you may be able to purchase the land and find a builder of your choosing. Either way, discussing your desired outcome and features is essential to ensuring the builder is going to deliver a product that will make you happy. If possible, tour multiple existing homes your builder has built to make sure the finished product is up to your standards.

During the Construction

Once your builder has been chosen and the plans finalized, the construction can begin. Depending on the type of loan you have decided upon with your Cambria Mortgage consultant, you will complete a few different steps at the start of the process, but will largely be able to relax and enjoy the process. The only payments you will be responsible for during construction are those related to the interest on the loan. Your dedicated Cambria Mortgage consultant will go over this in more detail with you at the start of the project.

Call Cambria Mortgage

To get started, call Cambria® Mortgage™ at 952-942-0110 today or visit CambriaMortgage.comOur team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.