Construction & Remodeling Loans: 4 Things You Didn’t Know to Make Your Dream Home a Reality

There are many benefits to either constructing your dream home from the ground up, or embarking on a major renovation project to make your home fit your needs. Whether you have a changing family dynamic, or are ready to create an ideal design aesthetic, construction and remodeling allow you to be in control.  This process is surprisingly accessible when you work with a local bank.  Here are four rules to make the home you wake up in everyday, the home you envision

The sooner you meet with your local banker, the better. Many variables are at play, which could include selecting land, selecting a builder, when and if you need to sell your current home, how the additions or building plans and finishes affect the final value, and what financing options are available and most beneficial. Your loan officer can assess your financial situation and your building plans to help you realize all of your options right up front.  Meeting with your banker early will also enable you to be prepared ahead of time for the loan application process

Stay in touch with your loan officer on all details. As you go through the process of working with your builder, chances are things will change. A local lender will communicate the relevant details during the appraisal process, which can affect the appraiser’s as-completed valuation of your project.  The amount you can borrow is based on the as-completed value, so details such as high-end finishes or energy efficiency improvements can affect the financing options available.

Like any other mortgage, changes to income, employment, major purchases, changes in assets, or even marital status may require more information during the approval process. If your loan officer knows of any changes right away or better yet, if you can discuss those potential changes prior to them occurring, he or she can advise you on how those changes affect your loan approval, and will work to relay the necessary information to the appropriate party to prevent any potential delays.

Your loan officer does more than sign paperwork with you at closing.  All mortgages involve paperwork and satisfying underwriting requirements, but your local banker’s job isn’t done at closing – they work closely over the course of your project with you and your builder to ensure the job is on time and on budget.  They monitor requests for funds to be sure you are only paying for work that has been completed, as agreed.  Your banker works directly with the title company to ensure that all lien waivers are submitted, and proper title endorsements are in place.  For a home owner, this gives tremendous peace of mind.  The worst-case scenario is settling into your new space, and discovering that a subcontractor claims they never were paid, and they place a lien on your home.  Your local banker takes care of coordinating these project details, which takes the stress off you, frees up your valuable time, and lets you focus on making your home just the way you want it.

Not all service is equal.  Many of the national lenders either don’t offer construction loans, or if they do, your loan is processed out of the area where local expertise is lacking.  Your Ann Arbor State Bank loan officer is with you from start to finish making the entire process seamless.  You will always have a direct line of communication to your Ann Arbor State Bank lender.  Their local responsibility and commitment to you, along with their expertise, provides you with a level of service that truly gives peace of mind.