Preston Homes of Texas

A Lake Travis Builder, Highland Lakes Builder & Hill Country Builder

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Preston Homes of Texas Demonstrates Green Energy Independence

April 14, 2016 by Lance Poling

Our award winning showcase home located in the Texas Hill Country just garnered another layer of recognition – Energy independence. 

By careful planning, along with many different applications of insulation, high efficiency glass, LED lighting, efficient water heating, air conditioning and heating components we were able to reduce consumption and minimize energy loss. The final step was the installation of an 81 panel Photovoltaic System.

That’s right, this 5,000 square foot home has no electric bills.  As a matter of fact we sell our extra-generated energy back to the electric company via a reverse meter. 

Tracking energy production and consumption is made easy by using many available smart phone applications.

Every home and environment is different so you must weigh the Pros and Cons and the rate of return on your investment. The break-even point on this home is about 7 years. With a solar system life that is estimated to reach 25 years you can easily see how the benefit can give back for many years to come.

Filed Under: Home Finance, Lake Travis Custom Homes

Financing a Custom Home: What You Need to Know

May 27, 2014 by Lance Poling

Financing a Custom Home

Financing a custom home is a critical financial decision. Make your dream custom home a reality through proper research for financing a custom home.

Financing a Custom Home: The Available Loans

The first step in financing a custom home is similar to the first step made for any financial decision:  review your personal finances and know your options. Typically when financing a custom home your option is to apply for a construction loan. Realtor.com notes that there are two options for construction loans when financing a custom home. These options are a one-time closing and two closings. In one-time closing construction loans, your lender approves an interest-only loan for 6-12 months during the construction of the home. When your custom home build is complete, the loan converts into a 29 year fixed-rate-loan. While this type of loan only requires you to pay one closing fee, it also requires an appraisal after the build and a conversion fee.

Many lenders view a one-time closing loan as far too risky and will require financing a custom home with the use of a two-closings construction loan. This is an interest only construction loan for the duration of your home’s construction that then is refinanced into an end loan to pay for the purchase of your custom home. As the name implies, this requires that you pay two separate closing costs.

For those in the beginning stages of financing a custom home, that is without immediate plans to build, there are lot loans available. A lot loan is simply a loan towards the money required to purchase the land on which the custom home will be built. These are often short-term loans and are not to be confused with the construction loan. Loansafe.org discusses the distinction between a lot loan and a construction loan, stating “…they are actually very different because with a lot loan the mortgage company will lend the borrower money for the land in which they intend to start building their home, and a construction mortgage is cash for the building to begin including the needed materials and the workers to begin construction.”

 Financing a Custom Home: Your Obligations

Once you have decided upon the type of loan that works best for you in financing a custom home, you will need to complete the application process. The application process for financing a custom home is not much different than a loan for traditional homes and requires much of the same information. However,  financing a custom home means that your loan professional or representative will also ask for a copy of the construction agreement with the company you have chosen for construction. This construction agreement must state the cost of your home, the lot value and possible upgrades. You may also be responsible for supplying a deed to the lot, a land contract for the lot on which you are building and floor plans for your custom home.

Once you have completed the loan application and submitted the necessary paperwork, you will wait for a response from your lender. If you are approved for a loan for financing a custom home, you will be financially responsible for any closing costs incurred.

Financing a Custom Home: The Building Process

Many lenders require your builder  to purchase insurance on the structure prior to construction beginning on your new home. This protects you from any damage or theft that occurs during the construction process. One thing to be particularly cognizant of is cost. Often during the building process the cost of the project increases. When applying for a loan for financing a custom home, it is important to remember that you can reduce the amount of the loan if needed, but you cannot increase the loan amount once paperwork is signed. Thus you want to find a reputable builder, such as Preston Homes of Texas, to ensure that you are kept aware of the entire construction process.

It is not only important that you research lenders, but your builders as well. Preston of Homes of Texas is proud to offer work of the highest quality for your custom home build. We work with our clients every step of the way to insure that they are informed of the entire custom home building process. Contact us today to find out how to get started making your dream home a reality.

Filed Under: First Time Builders, Home Finance

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As an award-winning Lake Travis custom home builder, our philosophy is to provide every homeowner in the Texas Hill Country and the Austin area with personalized attention and to deliver quality craftsmanship in every home we build.

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About Us

Award-Winning Custom Homes

3rd Generation Builder

2014 HCBA President

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(512) 267-7900

North Lake Travis
18580 E. FM 1431
North Lake Travis, Texas 78645

© 2023 Preston Homes of Texas, a division of Poling, Inc.

Looking for a Horseshoe Bay builder, Kingsland builder, Burnet builder, Spicewood builder, Marble Falls builder, Lake LBJ builder, Johnson City builder, or a Georgetown builder, you found us at Preston Homes of Texas. Contact us today to get started.

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