This home’s construction was financed by North Shore Bank. It appeared in the BCHBA’s fall showcase.

Despite the lingering economic effects of the COVID-19 pandemic, last month’s Brown County Home Builders Association Fall Showcase of Homes saw a lot of traffic — and attendees weren’t just window-shopping, says VP and consumer lending manager Chris Boland, who took the opportunity to promote North Shore Bank’s construction loan options.

“I spoke with a number of people who are ready to build and looking for the right builder or the right design,” Chris reports. “They were excited to see all of the style changes available. A number of them are interested in building their forever home, others have growing families and need more space, and others are looking to move to a different area. Whatever their reasons, the sheer number of people coming through the home I was at was amazing.”

Though lumber prices have come down from the height of the pandemic, homebuilding costs are still a bit high because of supply-chain issues, and that’s not likely to change drastically any time soon, Chris says. Consequently, it’s a good time to apply for and lock in a construction loan.

While their new home is under construction, North Shore Bank construction loan customers will only pay interest on the loan for up to 11 months. Upon completion of construction, the loan becomes a standard mortgage payment on principal and interest.

“The nice thing is that customers do not have to refinance at the end of construction,” Chris says. “Some do choose to refinance for different terms, and in that case, we offer a significant discount on their closing costs.”

Naturally, the bank is careful to work only with reliable contractors, so construction loan customers also benefit from North Shore Bank’s thorough vetting of builders. “Our Underwriting department reviews a builder’s Dun & Bradstreet report, which is similar to a credit report, and also reviews any public records to ensure our clients are working with reputable businesses,” Chris says.

For customers who might not have the liquid funds to start new construction without selling their current home, our cross-collateral construction loan is an increasingly popular option. “If they’re qualified, it lets people use the equity they’ve worked hard to create in their current home as a down payment on the new home,” Chris says. “That gives them a way to avoid moving twice.”

You can learn more about North Shore Bank construction loans on the website. If you’re interested in building a new home, or know a relative, friend, or customer who might be, please share this information with them! The BCHBA’s Spring Showcase of Homes is scheduled for March 5-6 and 10-13, 2022.