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What about Financing your Custom Home Build?

You have the perfect vision for your custom dream home, but now what about the financing? A specialty draw mortgage that protects your interests may be the perfect solution for your custom home build. Whether you are planning an acreage home or a home designed by a custom home builder in the city, a draw mortgage cannot only fund your build, but also help in financing your land purchase.

A draw mortgage is an arrangement with a mortgage lender that allows for a portion of mortgage funds to be advanced to the custom home builder at various stages of the construction process.

If you haven’t purchased your lot yet, no worries! You may even be able to use the initial draw advance to purchase your land, whether it is a city lot or acreage. Cornerstone Home has longstanding partnerships with key mortgage lenders that allow clients to make these sorts of flexible arrangements to include the initial draw advance to purchase the lot.

But how can you make sure that you and your funds are protected through the custom home building process? As your build progresses, draws will be advanced at pre-determined stages of construction. However, before any funds are released to the solicitors, an inspection must be performed first to insure that the required stage of construction is fully completed. Only once the lending institution is satisfied, will they allow funds to be distributed to the solicitor, and then to the custom home builder.

The draw schedule varies between institutions, but here is a typical schedule for the release of funds: the first draw is advanced when the home’s foundation is completed and when the home is ready for backfill. A qualified appraiser is sent out to inspect the home and provide progress pictures as proof. Once approved, approximately 15% of the project funds are then advanced to the lawyer and then to the custom home builder. The funds for the second draw will be released once the home is ready for drywall and HVAC is installed. The third draw will typically be advanced after drywall is complete with the fourth draw contingent upon the completion of the basement floor, flooring and door installation. Before each draw, inspectors always attend the job site to verify that the custom home builder has completed the work to the appropriate stage and that the builder is following the Alberta New Home Warranty policies.

Holdbacks are another key way the homeowner is protected with a draw mortgage. Mortgage funds that are released to the lawyers, will have a 10% builder’s lien holdback. This holdback works to protect the homeowner to ensure that no contractor liens are placed on the property during the construction phase. Once the deadline for contractor liens lapses, the final funds can be released to the custom home builder.

Cornerstone Homes has worked to establish key lenders that have a history of providing both excellent lending practices that protect the buyer and excellent rates for Cornerstone custom home clients.

Contact Cornerstone Homes today to find out more about all your financing options! Call Justin today at (403) 860-3574

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Building on Your Acreage Lot

Acreage ownership comes with amazing benefits from the unobstructed views to the freedom to enjoy the great outdoors anytime! But acreage building is more complex than custom home building in Calgary. As a custom acreage builder, Cornerstone Homes can help you navigate through the complexities of acreage construction.

We start the acreage building process with on-site meetings at your acreage lot where we can help you visualize the best location for the construction of your home. We will assess the land’s natural drainage, the best place to situate the home to capture the surrounding views and best location for the accompanying requirements of an acreage estate, such as the septic field and extended driveways.

As custom acreage builders we complete all the necessary permitting in conjunction with the building code requirements. We take care of bringing gas, power and telephone services to the home-site. We offer complete professional septic design and installation on your custom acreage estate, as well as site grading and roadworks.

Thinking of life in the country? Get information and prices or Call Justin at 403-860-3574 for a consultation today and let us help you capitalize on acreage living!

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Top Tips for Efficient Building

As a trusted builder in Calgary and area, the experts at Cornerstone Homes have the knowledge to assist with designing the perfect home plan that is also budget-friendly. Custom acreage homes do not have to come with premium price tags. Cornerstone Homes has sourced important ways to provide budget friendly building that still takes into account your customized wish list. Here are a few key factors that allow you to build an acreage home with Cornerstone Homes and still stay on budget:

  • Custom Designed Efficient Home Plans
  • Use a Certified Builder with Strong Vendor Partners
  • Rough in the things you can’t afford
  • Custom Designed Efficient Home Plans: As you begin the design process there are certain factors that designers at Cornerstone Homes can recommend and implement to lower overall costs.
  1. Alberta’s new energy requirements, under Subsection 9.36.2, 9.36.3 & 9.36.4 set out energy efficient guidelines, which will ultimately benefit the homeowner by reducing future energy costs. These requirements are set out by code and are included in your home plan beginning on November 1, 2016.
  2. Home Style: Bungalows or ranch style homes are more expensive to build in comparison to two-story’s. Bungalows have a larger footprint, which means they require more work in excavation, more concrete for foundation walls and a larger basement slab. Bungalows also require more roof surface to finish. Cornerstone Homes can show you how to achieve similar square footage with a two story when you build up instead of out, thereby reducing construction costs.
  3. Roof Lines: steep roof pitches add more in building costs because roof trusses will be priced higher than a shallow roof. Roofers may also charge more to shingle a steeper roof. Since design trends emphasize modern flatter roofs, this too may lead more people to consider the less expensive low sloping roof lines.
  • Use a Certified Builder with Strong Vendor Partners The experience of a well-qualified builder will save you money by keeping down construction costs and by garnering strong discounts with vendors, below standard retail costs. For instance, Cornerstone Homes negotiates key supplier pricing from electrical work to flooring in order to provide homebuyers with the most competitive price possible. As an expert in everything from design to excavation Cornerstone Homes is able to keep the price down by providing many quality services in house. Cornerstone Homes also specializes in acreage site work, including road works, building approaches and construction of outbuildings, all with careful consultation with clients.

Rough in the things you can’t affordIf you can’t afford everything now, consider roughing in certain items for completion later when the budget allows. For instance, why not rough in the gas line for a future fireplace or rough in the waterlines and drain for a future bar with final completion of these items planned in the months or years ahead. A fully finished basement may not be in everyone’s budget today, but adding the rough-ins now will allow you to complete that basement later with minimal aggravation. Similarly, consider roughing in air-conditioner lines now so that later it is an easy and less expensive install. And remember, when you have the budget to complete these items, Cornerstone Homes is a phone call away and ready to install the final products!