Yes, having a mortgage financing preapproval letter for your home builder should be done before meeting with a potential builder. Most contractors will require this ahead of time. Then after you have accepted a bid from your builder, bring your bid, plans and any other relevant information to your AbbyBank Mortgage Loan Officer to complete your customized financing plan. Use our free mortgage qualifier calculator to give you an idea of what you can afford. This can also help aid you when choosing a layout plan that will fit your budget.
Each situation is unique which means every mortgage loan is different and will depend on your specific situation. A typical rule of thumb is to put somewhere between 10%-20% of your appraised value as a down payment. The down payment can be dependent upon the proposed appraisal value so it can be hard to determine upfront how much your down payment should be.
Every situation is unique but typically your mortgage loan officer will need an appraisal of your new home construction before approving your final loan. They will want to make sure the property value is worth the amount of the loan.