Building a new home is one of the biggest financial moves you’ll ever make. Have a great team around you makes the process a grea deal smoother. Choosing the right lender can make or break your building experience. Not every lender is familiar with the details of construction loans—so it’s smart to “interview” them before deciding who to work with. The Veenstra Team has a list of vetted lenders who are eager to serve you.

Here are some specific questions you may want to consider asking when meeting with a potential lender:

✅ 1. What Types of Construction Loans Do You Offer?

• Do you offer a construction-to-permanent loan (one closing for the lot and the build)?

• Or will I need to close on the lot first, then do a separate loan for construction?

• What are the pros and cons of your options?

Why it matters: Some lenders make you go through two closings (one for land, one for the build). Others offer a “one-time close” loan that rolls it all together—saving money and hassle.

✅ 2. How Does the Draw Schedule Work?

• How many draws (payments) will the builder receive?

• Who requests the draws—you, the builder, or both?

• How quickly are draws processed once requested?

Why it matters: Builders rely on timely payments to keep your project moving. A lender that delays draws can stall your construction timeline.

✅ 3. What Are Your Requirements for Builders?

• Do you require that I use an approved builder list?

• What documentation does the builder need to provide (insurance, licenses, budget breakdown)?

• Have you worked with local builders in Kalamazoo/Portage before?

Why it matters: Some lenders will only work with certain builders, while others are more flexible. You’ll want to know this up front.

✅ 4. What Are My Down Payment and Equity Options?

• How much down payment is required?

• Can I use the equity from my current home as part of my down payment?

• Do you offer bridge loans if I want to start building before my current home sells?

Why it matters: Every family’s situation is different. A good lender should help you understand all your financing options—not just one path.

✅ 5. What Is the Interest Rate and How Is It Calculated?

• Is the interest rate fixed or adjustable?

• Will I pay interest only during construction, or full payments?

• When does my permanent mortgage rate lock in?

Why it matters: Small differences in how interest is charged during construction can make a big difference in your monthly costs.

✅ 6. How Many Construction Loans Have You Done Recently?

• How often do you work with construction loans compared to traditional mortgages?

• Can you share references or examples of clients who built homes?

Why it matters: Construction loans are more complex than standard mortgages. You want a lender who has recent, hands-on experience—not someone learning on your loan.

✅ 7. What Happens If Construction Costs Change?

• How are change orders handled if I make upgrades during the build?

• Will I need additional approval if costs go up?

Why it matters: Almost every build has surprises. You’ll want to know how your lender will handle adjustments without creating unnecessary stress.

👉 Ready to build in SW MI? The Veenstra Team can connect you with trusted, pre-vetted lenders who have successfully guided many of our clients through the construction loan process. Call us today at 269-350-5514 or visit MyKalamazooRealEstate.com to get started.