How to Finance Your Homebuilding Project

Building a new home is quite the undertaking. And often it all boils down to dollar bills. But a number of our clients don’t know exactly how to go about financing their homebuilding. So here are the basics.

1. Meet with a lender.

Now, though we are homebuilding experts, we’re not financial experts. So the first and best advice we can give you is to seek out the help of a professional lender. A local lender will know the housing market well, and work with you to get pre-approved for an amount you can comfortably afford.

2. Make a wish list.

Once you’ve been pre-approved for a loan, start making a wish list of everything you need (and want) in your new home. Think about needs: square footage, bedrooms, and bathrooms. Move on to wants: closet space, whirlpool spa, man cave, granite countertops. Once your list is complete, prioritize your needs and wants so you know exactly where you can trim the fat, and where you draw the line.

3. Work with your builder.

Choose a local builder (*cough* Bielinski Homes *cough*) and bring them info on your pre-approved loan as well as your wish list. Builders with lots of local experience (*cough* 55+ years in Wisconsin *cough*) will be able to work with you to determine exactly what you can afford. Be prepared to cross off or modify a few of the wants on your wish list, so bye-bye basement bowling alley. Once you and your builder (*cough* us *cough*) have designed your new home it’s time to get building!

4. Consider a bridge loan.

But for some folks, that’s not the end of it. If you’re moving from an existing home, there’s going to be a period of time while your new home is being built where you might need to consider a bridge loan. A bridge loan is a short-term loan taken out against your existing property to finance the building of a new home. Once again we recommend going back to the first step for more information on this one.

If you’re looking for a local lender, feel free to contact Bielinski Homes. Our 55+ years of local experience mean we’ve made some strong relationships with people in every step of the homebuilding process, and can help you pair up with someone perfect for you.