Custom construction financing is a bit more complex than a standard mortgage. In order to get an appraisal or to close on a loan you will need to have all of your paperwork in order.

The following is an excerpt from the fourth chapter of our eBook, Building a Custom Home: What you need to know about custom construction financing.

We hope that you find this information useful in helping you to gather all of the information and paperwork you will need to build your dream home. If you find this useful, please download your free copy of our eBook to learn more about the custom construction process.

Submit your plans and specifications.

The bank requires an appraisal in order to determine the exact value of the house and everything needed for the construction process. Finalized plans, cost breakdowns, and material specifications are required for this step. The total loan amount is then finalized. The appraisal value is key
to determining the final loan amount. The bank won’t lend more than a certain percentage of the home’s completed value, usually up to 80% of the appraised value or actual the cost of construction, whichever is less.

Here is the information your lender will need to order a professional third-party appraisal based on your house plans:

Building Plans

Includes foundation plan, floor plan and elevations. These will need to be signed and dated.

Site Plans

Includes lot dimensions, setbacks, easements, adjoining roads, location of house, location of garage and, if applicable, location of septic system and well.

Specifications & Materials

A detailed list of your materials and specifications. These will need to be signed and dated.

Cost Breakdown

Every cost associated with the build.

Fixed-Price Construction Contract

Includes state sales tax, builders profit and overhead. Should match the cost breakdown exactly. These will need to be signed and dated.

We know that building a custom home may be one of the biggest financial decisions you will
ever make. Since 1917, Washington Federal has been helping our community by making loans to families who wish to build or buy homes. Today, custom construction financing is a significant part of our business.

The following is an excerpt from the third chapter of our eBook, Building a Custom Home: What you need to know about custom construction financing.

We hope that you find this information useful in helping you to better understand how Washington Federal and our All-In-One Custom Construction loan can help you finance your new custom home. If so, please download your free copy of our eBook to learn more about the custom construction process.

Washington Federal specializes in construction financing.

We understand that our clients are not just clients, they are our neighbors. If you choose Washington Federal for your home loan needs, you will have a dedicated branch manager who will meet with you one-on-one and face-to-face. The same person will handle your loan from start to finish. We don’t pay on commission, so we’re free to give you the personal attention and customized advice you deserve.

Consider our “all-in-one” loan.

Unlike many other banks, Washington Federal offers an All-In-One Custom Construction loan. With our all-in-one loan, there is only one application, one closing and one set of fees. You will not have to get a loan for the construction of the home only to have to come back and get a second loan after the home is complete. The entire project is underwritten at the same time. And you will be locking in your permanent rate before you even break ground, giving you additional peace of mind. We even give you the option to lock in your interest rate during processing for up to 90 days (deposit required). Please note that rates can change daily.

When you are building a custom home, we allow 12 months for interest-only payments on the funds you have drawn to date as your home is being built. Upon completion, we roll your loan into a fully amortizing loan with principal and interest payments spread over 30 years. We also offer a 15-year term option. Construction of your home will be paid for by doing monthly draws from your total loan amount based on the percentage of completion. We do site inspections ourselves and handle the draws right from your neighborhood branch. By doing our own draw and inspections, we can save you both time and money.

Are you in the market for a new home? If so, you’ve probably already realized that there are lots of exciting decisions to be made. For example, should you live in a rural area with more land or do you enjoy the city life? Are you looking for an older neighborhood with some charm or would you prefer a newer neighborhood with sidewalks and up-to-date amenities? Do you prefer one-story or two? Would you rather live on a corner lot or a cul-de-sac?

For some of us, buying a home that’s built and ready to go is fine. However, if you want to have more control over where you live and how your house looks it may be difficult to find everything you’re looking for in a purchase-only home. If you fall into this category of house-hunters, a custom-built home may be the better way to go. There are a lot of great advantages to custom home construction. The infographic below highlights eight of the biggest reasons you may want to think about making your new home a custom home.

If you find this information useful and want to learn more about the custom construction process,  download our free eBook.

Did you know that two out of five adults give themselves a C, D or F grade on their knowledge about personal finance?

Parents consistently cite finance as one of the most uncomfortable topics to talk about with their children. In order to help set up our kids for financial success, we need to provide guidance and educational opportunities.

If you want to teach your kids about personal finance but don’t know where to start, take a look at our three part series, How to Teach Your Kids Money Management.

Washington Federal is committed to bringing cutting edge financial education to students in our communities. We partner with local organizations like the United Way to deliver financial literacy through programs including EverFi and Save at School.

Take a look at our infographic below to learn more about financial literacy for students and the steps Washington Federal is making to help educate future generations about personal finance.

At Washington Federal, we appreciate your business. For nearly 100 years, we’ve been working together to build stronger communities. We do our best every day to provide you with personalized service and attention and we appreciate you relying on us for your banking needs.

As a way to say thanks, we are giving away an iPad mini every week from now until July 31, 2013. If you’re already a Washington Federal client, you’re automatically entered to win. If we draw your name, we’ll reach out to you and let you know. If you’re not a current Washington Federal client, you can enter at any of our 180-plus locations or online at www.washingtonfederal.com/iPadgiveaway.

Good luck!

EverFi

In celebration of Financial Literacy Month, Washington Federal has partnered with the United Way to launch a program that is bringing financial education to Las Vegas high schoolers. The program will provide ninth through twelfth graders with free access to EverFi, “a new media learning platform that uses the latest technology – video, animations, 3-D gaming, avatars, and social networking – to bring complex financial concepts to life for today’s digital generation.”

Topics covered by the program include credit scores, insurance, credit cards, taxes, investing, savings and more. The program enables students to not only learn important information in cutting edge ways, but also to practice making financial decisions in a “safe, virtual environment.” After completing the 6-hour course, students receive a certification in financial capability, a valuable asset for college applications and resumes.

Save At School

In addition to the partnership with EverFi, Washington Federal helps teach children the habit and value of saving money with our Save at School program. Your local neighborhood Washington Federal branch will work with the elementary schools in your community to offer the program. Children can open an account with $5 (Washington Federal will match this $5 on new accounts) and have the ability to make deposits during the school’s “Bank Days.” Bank Days are chosen by the school’s administrators and deposits are collected by a bank representative. With no fees or a minimum balance to earn interest, students can start learning the value of saving money from an early age. We provide register books and reusable envelops for the kids, and parents receive quarterly statements by mail.

If you’re interested in bringing the Save at School program to your child’s school, please contact your local branch.

Good builders, architects and general contractors will prove invaluable when building a custom home. If you are new to the custom construction process, hiring a well-respected expert is well worth the extra money. Depending on their individual skill-set, they can help you determine your budget, draw up your plans, make informed design decisions and oversee construction.

The following is an excerpt from the second chapter of our eBook, Building a Custom Home: What you need to know about custom construction financing.

We hope that you find this information useful in helping you to better understand the roles of each expert you may need to hire for your project. If so, please download your free copy of our eBook to learn more about the custom construction process.

Hire Respected Experts

Depending on the project and the experts you choose, there may be some overlap between titles and job responsibilities. In some cases you may be able to find one company that has its own experts and can handle everything. In other instances, you may want to hire each of them yourself to pick your own individual team members.

Architect

Architects are responsible for planning and designing buildings. A good architect will work with their client to get a good understanding of how the structure will be used and any design features the client would like to include. With this knowledge, they develop all of the structural, mechanical and electrical requirements.

They will also help oversee the process by getting frequent updates from the builder or general contractor. In addition, architects will often help you get your construction permits by helping you submit your plans to the city for approval. In most cases, architects are paid through commissions from their client based on the total project budget.

Builder

Builders are responsible for coordinating and building your home. Some builders may design completely custom homes using in-house architects or designers while others may work with architects hired by their clients.

Builders will often have their own in-house teams that handle most aspects of construction without as much need to subcontract. In most cases, you will work with your architect and builders to determine the costs of your home. The fees you pay to the builder will cover these costs, including materials and subcontractors plus any fees the builder charges for their services.

General Contractor

Your general contractor will be involved in all of the day-to-day management during the construction process. They are responsible for keeping the project on target, on time and on budget.

A general contractor will hire all of the subcontractors needed for your job. In most cases they are paid by charging a percentage on top of the total fees charged by the subcontractors.

Interior Designer

Interior designers are multi-talented, artistic professionals responsible for designing and coordinating the use of interior space. This can include everything from layout and furnishings to paint and carpet colors.

Some interior designers are self-employed while others work for design firms or retail stores. There are different ways your interior designer can be paid depending on how they’re employed. Self-employed designers can be paid by the hour, by the project, by the square foot or based on the cost of materials. Designers working for design firms or retail stores are usually paid yearly salaries or by the hour.

Soil Engineer/Geo Tech

Soil engineers are responsible for inspecting and analyzing a site’s soil and geotechnical characteristics. Through observation and testing they are able to determine things like drainage, erosion patterns and weight-bearing capacity. This will help to know whether any special accommodations need to be made to the foundation or other aspects of the home.

Soil engineers can charge hourly for their services including the time they are drilling or inspecting a property, but may charge flat fees for testing or writing up reports.

Congratulations! You’ve been thinking about it for a long time and have decided that you want to build a custom home. Building custom can be a fun and exciting experience. However, it can also seem daunting and overly complicated.

Why? You’re starting from scratch. You pick the land, the builder, the plan, the materials and the financing. That’s a lot of choices and a lot of “i’s” that need to be dotted and “t’s” that need to be crossed. Don’t worry; we’re here to help. That’s why we say Washington Federal is “invested here.”

The following is an excerpt from the first chapter of our eBook, Building a Custom Home: What you need to know about custom construction financing.

We hope that you find this information useful in helping you to make a wish list. If so, please download your free copy of our eBook to learn more about the custom construction process.

Make your wish list.

If you’ve decided to build a custom home, it’s probably because there are things about your current home that you would want to change if you could.

The first thing to do is list the features you’d desire in an ideal home. What daily frustrations do you encounter in your current house? Make a list of features or issues and don’t hold back. Involve everyone that lives in your house or visits you regularly. There are no bad ideas at this stage, so write down all suggestions.

Here are a few common features you might find inspirational as you put your list together:

Proximity to your family.

Do you want to be close to your siblings or aging parents? How often do you see your extended family? Would you want your custom home to be the family gathering spot?

Kid-friendly neighborhoods.

Review the schools, parks and safety statistics of the neighborhoods you’re considering. Are you looking for a quiet spot at the end of a cul-de-sac? Or do you want the sidewalks and bus lines of a more urban setting? Do you want a fenced back yard? Or open acreage so the kids or grandkids can explore?

Exterior Appearance

Do you value a unique design for your home? Or are you looking for a traditional design? Think about adding detailed molding or other exterior add-ons to create your home’s one-of-a-kind look.

Amount of storage

Does your current home feel cramped? Do you have special hobbies that require storage or workspace? Consider adding closets, casework or even extra storage space in your new home’s garage and attic.

Space to entertain.

Do you entertain guests frequently? Do you love to cook or hold dinner parties? If your current kitchen doesn’t provide you the space you need, consider adding a bigger kitchen to your wish list. Larger kitchens include multiple sinks, an island, double ovens, more cabinet or counter space and room for bar stools so your guests can hang out while you play chef.

This post is the 3^rd and final post in a short series about teaching your kids good money management. If you haven’t read the other posts yet, you may want to start with Part 1 – Teaching Your Child About Earning Money.

For a child (in fact, for most of us) spending is the most fun thing you can do with money. After all of the earning and saving your child has learned to do, they are surely ready to start spending. Teaching a child how to spend money wisely is one of the best skill-sets you can give to them.

Teaching Your Child About Spending Money Wisely

Perhaps the most important aspect of teaching a child how to be responsible with their money is getting them to understand the reality of limited resources. As we all know, you can’t spend the same dollar twice. A child who hasn’t learned how to prioritize their spending and give up things they want will carry these issues into adulthood. For an adult that can’t afford everything they want, there is one simple solution… Credit cards. Learning to prioritize now will give your child the confidence to know how to purchase the things they need and save for things they really want, not to put them on a credit card.

Put a child in front of Nickelodeon or the Disney Channel for more than 10 minutes and they’re bound to find a ton of great things they’d like to buy. Teach your child to have a healthy skepticism for advertising. Pulling back the curtain and explaining that these great commercials are only created to convince you to buy a product may (or may not) help them to be less persuaded by them.

Teach by Example

While it may not be the most efficient or stress-free way to shop, taking your kids with you to the mall, the grocery store or the used car lot and including them in purchase decisions is a great way to teach them how to spend money wisely. Talk them through your decision-making process. Explain what a coupon is, what a sale is and why you’re choosing the generic brand “O’s” cereal over the name brand. Teach your child to be reasonable, to know where to save a penny and to know where and when to buy quality.

Once they have some experience watching and participating with you, it’s time to put their skills into practice. Back-to-school time is the perfect time for this. All kids love to get new school supplies, clothes and shoes at the end of the summer. Give your child a fixed back-to-school allowance in cash and help them through the process. This will be much more exciting to them than buying groceries as they have a bigger stake in the outcome. When they have to choose between the nice new shoes or the cool new backpack they will begin to see the value in what you’ve been teaching them.

When a child is old enough to do things on their own (the movies, the mall, etc.) don’t give them money. Instead, raise their allowance and leave them in charge of managing their entertainment budget themselves. It may be hard for them to say no to a trip to the ice skating rink, but if it means they can go to that concert they wanted to see later on it will all be worth it to them.

Good Luck!

No matter how many ideas you implement, the most important aspect of teaching your child how to be responsible with their money is making sure that YOU are financially responsible and providing them with a good example. Children are sponges and will always learn more from what you do then they will from what you try to teach them.

This post is the 2^nd in a short series of blogs about teaching your kids good money management. If you haven’t read it yet, you may want to start with Part 1 – Teaching Your Child About Earning Money.

People like instant gratification. It can be hard to learn that “good things come to those who wait.” Teaching your child about saving money from an early age will set them up to be able to achieve some of the larger goals they will have later in life including buying things like cars and houses or saving for things like vacations or retirement.

Teaching Your Child About Saving Money

The first step to teaching a child how to save money is to help them understand the difference between needs, wants and wishes. It’s difficult for them to understand that all money can’t simply go to things they want. This is a lesson that will take some time to sink in. Helping a child to prioritize their wants, however, will be good practice when it comes time for them to make difficult decisions on their own in the future.

Use The Piggy Bank

When giving a child allowance, make sure that you are breaking out the total into smaller bills or coins. This will encourage them to divvy it out (some for savings, some for spending, etc.). For children under 10 years old, buy them a piggy bank of some sort to get them on the right track. The Money Savvy Pig is a great example because it is see-through and there are 4 slots; Save, Spend, Donate and Invest. Allowing your child to see their money and giving them the chance to split things up at the beginning may help with their decision-making process. To encourage your child to make more mature decisions, consider matching fifty-cents on the dollar for everything but the “spend” category.

After the Pig

For children 10 and up, consider taking them to the bank and involving them in the process of opening up a checking or savings account. This will give you the opportunity to teach them how to balance their checkbook and will wean them off of having to see the physical cash in order to make good decisions.
Once your child reaches their teenage years you may want to begin teaching them some of the finer details of personal finance. Consider getting a debit card for their account. Leave off the overdraft protection so that they will learn their lesson if they take out more money than they have. This is also a great time to teach them about how interest works and the values of investing. Opening a mutual fund for them will give them some good practice. Who knows, it may even be the first step toward financial independence.

When it is time for them to make these decisions, talk things through with them to help but don’t be too pushy. Allow them to make the decision on their own and be prepared for them to make some bad ones. It is important that you let your child make mistakes and learn from them. If they spend all of their money and come to regret it, don’t bail them out. These are the moments where they will learn the most.

To learn more about teaching your kids good money management, continue to Part 3, “Teaching Your Child About Spending Money Wisely.”