If you’re considering building a new home, you may be wondering how the financing works. Getting a loan to build your own home is in many ways similar to obtaining a mortgage to buy a resale home. One main difference is that with a new home, your builder may offer attractive financing packages with preferred lenders. These established working relationships help streamline the process, and those savings are often passed on to the home buyer.

Trophy Signature Homes is uniquely suited to make the financing process easier for you because of our status as a Green Brick Partner. Green Brick Mortgage offers a vast selection of loan solutions. A knowledgeable loan originator will work with you to help you determine the best one for you. Known for its attentive customer support, Green Brick will also provide you with easy-to-use technology and resources to help the process progress smoothly. It will feel less like you’re dealing with a third party than it would with other major lenders.

Working with Green Brick Mortgage may also reduce the time needed for the financing process, with our Green Line Express system. Green Line Express cuts wait times for loan applications and moves you quicker along to the closing table. Customers also enjoy the highest level of transparency possible, with convenient technology like mobile-friendly customer support. Learn more about your options with Green Brick by creating a free account and applying for pre-approval.  

Of course, you can also work with another lender. When determining your ability to pay back a loan, a lender is going to calculate your debt-to-income ratio. Familiarize yourself with your finances and monthly budget. Then you can begin to figure out what you might be able to afford. 

This information, along with your credit score, will help determine the interest rate for your mortgage. There are a number of online calculators you can use to help figure out your desired price point. You can also experiment with different types of loan options. 

List describing types of mortgage options

To actually apply for a loan, you will need the following documents (and possibly others):

  • Copies of paycheck stubs for the last 30 days
  • Employment history, residency history, and copies of W-2s for the last 2 years
  • Copies of quarterly or semi-annual statements for checking, savings, IRAs, CDs, money market funds, stock, 401K, profit sharing, and other accounts
  • Copy of driver’s licenses for applicant and co-applicant
  • Income tax forms

Some lenders, including Green Brick Mortgage, will have online document management tools to allow you to certify and send documents securely.

However you choose to proceed with financing your new home, be thoughtful in your decision-making. Your house may be your greatest investment. Learning how financing works iis an important first step in your journey to home ownership.