A Simple, Approachable Guide to Financing New Construction Homes

The appeal of a StyleCraft new-construction home runs the gamut from being able to choose the picture-perfect homesite to selecting features and design options that make you feel like home. To unlock this homebuilding experience, financing new construction homes is often part of the process. And while it can feel intimidating or even stressful, securing a home mortgage can be like everything we do at StyleCraft: straightforward, collaborative, and fully transparent. From the pre-approval stage to closing, we’ll walk you through the key steps for financing new construction homes with our preferred lenders.

Step 1: Home Mortgage Pre-Approval

Financing new construction homes occurs in phases, which creates a user-friendly approach for the homebuyer, homebuilder, and the lender. That’s because when beginning a search, a homebuyer only needs to complete the paperwork necessary for pre-approval, which will provide them an estimated budget, monthly payment, and which type of home loans are available, including FHA, USDA, VA, Conventional, and others. This high-level information helps guide homebuyers and homebuilders to which communities, floor plans, and other features are the best fit — without getting into weeds just yet. In effect, there’s no wasted effort.

Pro tip: One way to streamline pre-approval, and the entire new construction home financing process, is to choose a lender that’s familiar with the homebuyer you’ve got your eye on. Stylecraft has preferred lenders who know our process inside out, expediting the process without leaving any incentives on the table.

Step 2: Reviewing and Signing Your Contract

When you sign your purchase agreement, it triggers some key steps:

• You’ll typically pay an earnest money deposit, which can count toward your total balance due at closing.
• You’ll lock in on any specific incentives you will receive from Stylecraft.

Yes, this phase of financing new construction homes feels a lot different than simply touring model homes with a number floating above your head. It feels a lot more real. And as you begin using your mind’s eye to start the interior decorating, your lender will work behind the scenes to prep your initial loan disclosures and wrangle documentation for your formal loan approval.

Yes, it’s all happening, and you’re closer to your home loan — and walking in the door of your new Stylecraft home — than you think.

Step 3: Completing the Loan Application Process

The big takeaway from completing your formal loan application is learning preliminary, estimated costs, home loan terms, and other key details. Don’t worry, these totals are estimates that may come in under these initial amounts, as final numbers from the builder, title company, and insurance provider are reconciled.

Step 4: Loan Processing & Underwriting

This step of new construction home financing is a reminder why it’s important to keep documents. Having them organized and already digitized is better than hunting around for random bank statements that you were certain were stacked right beside your paper shredder.

During processing and underwriting, expect the following:

• Your processor will collect any remaining documents (including paystubs or bank statements).
• The underwriter will review everything to issue your Loan Approval.

Step 5: Construction Begins on Your Brand-New Home

Finally, the action is moving from an office to your homesite, where StyleCraft’s talented crews begin building your home. And more building means less administrative home mortgage to-dos for you. Don’t worry, you’ll receive regular updates from your builder on progress, and your lender will touch base if any updated documents are needed .

One other note: Stylecraft typically orders the appraisal 45 days before closing. We’ll reach out to you to pay the appraisal invoice at that time, which is a key step in keeping the build on track.

Step 6: The Closing!  (And Getting the Keys)

Once construction is complete (and the appraisal is back), we’ll send your file through final underwriting. If no new documents are needed, your file will be “clear to close” — the best three words in new home construction financing!

At this point:

• You’ll schedule your final walkthrough of the home with the Stylecraft team.
• Your home mortgage lender will send you a closing disclosure, which is a final breakdown of costs.
• You’ll prepare to sign at the title company — yes, one more round of signatures but definitely the best — and receive your keys!

A Last Word on Preferred Lenders

Here’s the great thing about financing new construction homes: you can choose any home loan lender that can get you in the door of your new home. But the even better thing is how much easier it is to work with StyleCraft’s preferred lenders. They’re thoroughly vetted partners who are experienced, reliable, and highly knowledgeable. They know us and the nuances of our process — and work hard to find the very best-fit home.

 What does this look like?  

• Quicker loan processing
• Seamless communication between your lender and builder
• Exclusive incentives, including closing cost assistance or rate buydowns

Financing new construction homes doesn’t need to be something you dread, or even something that slows down or muddies the home mortgage process. In fact, with StyleCraft’s preferred lenders, you can flip this phase of the homebuying process into the key decision  you made to save time and money on the way to your new home.

Ready to get started? Reach out to our preferred lenders for your free preapproval and let’s turn your dream home into a reality.