vFinancing New Construction continued from page 8 it. Also consider that an experienced contractor brings a wealth of knowledge to a project. This knowledge makes the building process go smoothly and more efficiently, resulting in lower costs and higher quality work. Plus with their experience, they know what materials and building details work and which are prone to failure. Work with your builder to design a home that is within the budgeted amount. 6) Floor plans and materials: For your construction loan we will need detailed specifications, including floor plans, as well as details about the materials that are going to be used in the home. Builders often put together a comprehensive list of all details; details generally include everything from ceiling heights to the type of home insulation to be used and much more. 7) Appraisal: Although it can seem difficult to appraise something that doesn’t exist, we will engage a qualified home appraiser to review the plans and specs of the house, as well as the value of the land that the home is being built on. These calculations are then compared to other similar houses with similar locations, similar features, and similar size. These other houses are called “comps,” and an appraised value is determined based on the comps. 8) Approval: Once the appraisal has been completed, final approval on the construction loan will take place. After approval, the construction loan is then finalized and closed. Construction on the home now begins! Windows, Screens, Mirrors & More! We Will Take Care Of ALL Your Glass Needs! Ron’s Auto Glass Locally Owned & Operated 1915 Broadway, Yankton, SD (Next to Dairy Queen) 605.665.9841 12 • TODAY’S HOME - Spring 2018 Design the house to your budget It is important to start with a realistic budget. With clear budget guidelines, you will reduce your chances of getting a design that is over budget that you might not be able to afford. Even with clear budget guidelines, many projects will still come in over budget. Before construction begins have a plan for how you would handle cost overruns that may happen during the project. If you have cost overruns will you have sufficient cash to pay those costs out of pocket? If not, discuss this with your First Dakota mortgage lending officer. You may need to look at getting qualified for more loan than you think you will need just in case you need to increase your loan amount to pay for any cost overruns. Home and neighborhood should be equal When building, there are two main issues, the ability to finance the home and the ability to protect your investment. Your First Dakota mortgage lending officer will help you determine the best financing for the project. Matching the size and price of the home you build with the neighborhood can help protect your investment. Building a home is not the time to leave anything to chance. Carefully weighing the items listed in this article is important so you know that the choice you make is the right one for you. If you have mortgage or construction lending questions, please contact Gloria Bohn, 605-665-4951, gbohn@firstdakota.com; Mary Pfeiffer, 605-655-7579, mpfeiffer@firstdakota.com; or Sandy Brown, 605624-5845, sbrown@firstdakota.com Or go to FirstDakota.com to complete our prequalification application. v Editorial provided by First Dakota National Bank Did you know? The U.S. Environmental Protection Agency notes that there is no practical way to eliminate all mold and mold spores in an indoor environment, including a home. But by controlling moisture in their homes or apartments, men and women can control indoor mold growth. One way to do just that is to prevent condensation in a home by adding insulation. In addition, clean building materials or furnishings that become wet as promptly as possible, and no more than 48 hours after the items have become wet. Mold produces allergens and irritants, and inhaling or touching mold or mold spores can trigger allergic responses such as sneezing, runny nose, red eyes, rashes on the skin, and even fever-like symptoms. v MetroCreative Connection