Are you thinking of designing and building a brand new custom home? Great! KASH Mortgage Group offers lender options for new home construction loans. New home construction loans are different from your typical conventional mortgage. We can help educate you on the necessary steps you must take. It is important that you contact us so that we are able to guide you in the right direction.
Basic Elements
Get Pre-Approved
First contact KASH Mortgage Group and speak with our new home construction loan specialist. You will need to know how much you will be able to borrow so you can discuss this amount with your new home builder.
Understand Lock Rates vs. Floating Rates
A KASH Mortgage Group Specialists will be able to tell you more detail about these two types of interest rates. Because a new home construction process takes months to complete, you will need to know which interest rate loan option works best for you.
Provide a Signed Purchase Contract
Before you apply for your loan you will need to provide a Purchase Contract. This purchase contract will need to be signed by both you and your home builder. This contract explains the details of how the entire construction process will work. This would will include costs, time lines, and start & completion date.
Understand the Basic Phases of a New Home Construction Loan
The new home construction loan disperses funds at different periods of the construction process. For example, Do you already own the land out right that you will building on? Or are you paying for this land from another loan? This loan would need to pay that loan off before construction starts. As the home buyer you will need to make interest only payments during the entire construction phase, which is typically no more than 12 months. As the home builder constructs the home, the loan will disperse funds based on agreed milestones or building phases. And when the construction is final complete, your loan will convert into the permanent mortgage we all have grown accustom to.

Begin Your Pre-Approval
Start your Pre-Approval application now to identify your maximum new home construction loan amount. Knowing your maximum loan amount will help you understand what price levels to discuss with your home builder.