Financing
Preferred lendors
Newtown Savings Bank
nsbonline.com
NMLS# 411347
Thomaston Savings Bank
thomastonsavingsbank.com
NMLS# 407687
Litchfield Bancorp
litchfieldbancorp.com
NMLS# 510148
Custom Home Financing Options
At The Corbo Group, we take pride in our deep understanding of the financial planning aspects involved in building your new custom home. Unlike some builders who require you to have your finances nailed down before starting a conversation, we offer guidance to help you find the right financing options and lender for your new home.
There are two main financing options for building a custom home: an end loan and a construction loan.
Construction Loan
End Loan
An end loan is the simplest and most straightforward way to finance a new home. Here’s how it works:
Process:
- You choose your new home.
- An appraisal is conducted, and your documents are reviewed to ensure you qualify.
- You set a closing date and make a down payment (typically 10-20%).
- The bank provides the remaining mortgage amount, and you receive the keys at closing.
Pros:
- Simplicity: The process is straightforward, with only one transaction at closing.
- Ease: You know the terms and conditions upfront, making it easier to plan.
- Direct Sale: Property taxes are assessed based on the purchase price, which simplifies tax calculations.
Cons:
- Interest Rate Lock: You lock in your interest rate close to the closing date, which could be months after starting construction. This means you might face higher rates if market conditions change.
- Higher Taxes: Taxes are based on the full purchase price of the home.
Financial dislcaimer
The information on this webpage is for general purposes only and does not constitute financial advice. We recommend consulting with a financial advisor for personalized guidance. The Corbo Group does not endorse any particular lender, and you are free to choose any lender that suits your needs. The financing options provided are illustrative and may not be current. We do not guarantee the accuracy or completeness of the information and are not liable for any errors. For specific advice, please consult a qualified financial professional.
