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Construction Loans

Construction Loans

We know building the home of your dreams can be daunting. Baker Boyer is here as your guide to help you through the construction loan process. Here is our 4 Step Process for finding a construction financing solution to best fit your needs:

Step 1: PLANNING

  • Visit Baker Boyer: As your financing partner, we will discuss your plans, budget, and expectations with you
  • Find a house plan: Work with a licensed contractor to find a house plan that meets your needs both on a personal and financial level. 
  • Pick your lot: Work with your realtor and contractor to pick a lot that is right for you and your new home. Your realtor will help negotiate the terms of the land purchase or the terms of your land and home purchase package. 

Step 2: THE LOAN

  • Apply for a Baker Boyer loan: To apply for a Baker Boyer loan you will need to provide your personal financial information, including but not limited to:
    • Most recent paystub(s) covering a 30 day period
    • Most recent two years' tax returns with all schedules and W-2s
    • Current bank statements, including checking, savings, and investment accounts
  • Customize your loan: Baker Boyer will customize your construction loan to meet your individual needs. To do this, we will need your:
    • Purchase and sales contract agreement for the lot purchase
    • Construction contract
    • Plans / blueprints
    • Description of materials / spec sheet
    • Detailed cost breakdown
    • Plot plan showing lot dimensions, easements, location of house, septic system and well (if applicable). 

Step 3: CLOSING

  • After applying for your loan, Baker Boyer will: 
    • Provide you a cost estimate and loan disclosures
    • Order an appraisal of the proposed construction project
    • Order title insurance
    • Lock-in the interest rate for the construction loan
    • Document your loan per bank policy
  • Closing:
    • The loan can proceed to closing once it has final approval
    • Closing will be through your designated agent -- typically the Title Company
    • Down payment and closing costs will be collected at closing
  • After closing, Baker Boyer will:
    • Work with you and your contractor to disburse loan funds until the home is complete
    • Inspect the property to document construction progress
    • Bill monthly for the interest accrued on the advanced construction funds

Step 4: ENJOYING YOUR HOME!

  • Move into your new home! Congratulations!
  • Permanent financing: As construction approaches completion, we will work with you on  the permanent financing
  • Loan repayment: We will work with your to create a repayment plan for your loan
  • Refinancing / HELOC: In the future, if you ever need to refinance or would like to take out a Home Equity Loan or Line of Credit, Baker Boyer will be here as your financial partner

To set up an appointment to explore your options with a Baker Boyer Consumer Loan Advisor, please call us at (509) 525-2000 or stop by our office.