Your Michigan Bank Can Help with New Home Construction

With available housing inventory in Michigan at an all-time low and housing prices up almost 14% from a year ago, your goal of becoming a homeowner may seem unattainable right now. But it isn’t. Even with the costs of lumber increasing over the past year, new home construction still represents a viable and cost effective opportunity to get the home of your dreams, and banks in Michigan are here to help with financial support.

Building a new home starts with a design process. We’ve assembled steps to guide your planning efforts.

Step 1: Frame Your Dream

As you begin new home construction, ask yourself these fundamental questions:

• What’s your budget for your new home? A construction loan often requires a higher down payment than a traditional mortgage, so you may need to create a plan to save additional money.
• What style and size house will align with your goals and lifestyle? Do you need a ranch with 2 bedrooms or a larger home with 3 or 4 bedrooms? Would you and your family enjoy a neighborhood close to city centers or a more rural setting?

Your budget and your goals will inform the design brief for your construction. Your design ideas are the starting point for your conversation with your builder or architect.

Step 2: Connect with a Builder or Architect (or Both)

Collaborating with an architect to illustrate your design brief gives you a plan for a builder to review. You’ll ensure your design meets your needs and addresses any complexities with construction before breaking ground. You’ll also gain:

• Ideas and lessons from prior home builds
• Knowledge about material pricing and availability
• Cost-savings insights and preliminary estimates before finalizing plans
• Understanding of building codes, deed restrictions, and permits
• Information about the latest building and design trends

Step 3: Review Your Build Site

A site survey will help you understand environmental aspects your builder could enhance or overcome, such as:

• Solar access for potential green energy
• Slopes and views
• Land, trees, or other buildings
• Drainage and utility services
• Road access

Step 4: Finalize Your Design

Your architect and builder may have several concepts for you to consider. Choosing your final plan includes:

• Identifying your floor plan, including window types, sizes, and orientation
• Selecting external and internal finishes such as siding color, roofing material, carpeting, tile, and colors
• Fixtures (lighting, plumbing) and appliances
• Deciding on the heating, cooling, and water systems
• Landscape design

Your builder can recommend green or sustainable materials that can deliver energy credits or cost-savings.

Step 5: Team Up with a Lender for a New Construction Loan

Banks in Grand Rapids, Metro Detroit, and Ann Arbor will partner with you to finance your new home construction. Some construction loans offer attractive benefits such as:

• Financing to buy your lot and covering up to 90 percent of your home’s completed value
• Interest-only payments during construction

Partnering with a local Michigan bank like Level One Bank can provide quicker turnaround for your project because they have local financial experts handling the underwriting process.

For more information about getting started on new home construction that helps you bring your dream home into reality, contact our team. We’re here to support your goals!

“A house is made with walls and beams; a home is built with love and dreams.”

– Ralph Waldo Emerson