Baylake Bank eNews. Member FDIC

Experienced Builders and Bankers
Help Make Construction Process Easier

By: Kelly LuMaye

Kelly LuMaye

Kelly LuMaye
NMLS #495841

Mortgage Lender

When it comes to building a new home, the many owner choices, timelines, and specifications need to align within the construction process to fulfill the desired outcome. That is why it is crucial to choose your builder and lender carefully, and plan well in advance for this lifetime investment.

One way to determine what is available from a home building or remodeling perspective is to attend your area’s building expos and tours of new homes. These type of events connect you with local builders and vendors as well as financial service providers who can help you discover what is available to you when the time is right to construct and finance your new home.

Baylake Bank is proud to be an active member of the Door County Home Builder’s Association and a sponsor of their upcoming events. We invite you to visit us at the Annual Home and Garden Expo being held at Stone Harbor Resort on April 5th and 6th. Expo hours are from 10 am to 4 pm each day. Or, stop and see us at the Showcase of New Homes open May 9th, 10th and 16th through 18th in Door County. Baylake Bank representatives will be available at some of the host locations. For more information visit

Financing should be customized to meet your individual budget and needs. Qualifying for a construction loan has similar income and credit qualification requirements as a standard mortgage, but requires additional documentation regarding the builder and the project. That is why planning well ahead of time is so crucial. The following is an outline of what you will need to have to apply for a construction loan:

• Income verification such as tax returns and pay stubs and financial statements
• Lot information such as tax bill, closing statements or offer to purchase
• A set of plans and detailed specifications
• An executed construction contract
• As part of the process, an appraisal and title work will be required and ordered by your Lender

building plans, paint chips, keysA construction loan does not come in a one size fits all solution. There are different construction financing options available depending on the individual client. No matter what type of construction loan you choose, you will likely be required to pay monthly interest only payments on the construction loan amount during the construction phase. The amount you owe each month will depend on the amount you have “drawn” out of the loan, not the overall amount that you are allowed to borrow. For instance, if you are approved for a construction loan of $200,000 but you have only drawn $50,000, your interest only payment will be based on the drawn amount of $50,000. Once the home is built, the loan is then restructured for longer term financing including both monthly principal and interest payments.

It is important to work with your local community bank with professionals who know the market, the local builders and other service providers. Our knowledgeable Baylake Bank lending experts live and work here, and have an extensive background working with the local building community.

At Baylake Bank our primary goal is to meet our client’s needs and expectations as quickly and effectively as possible. From our first meeting to long after your home is completed, our focus is to provide you with a level of customer service that is second to none!


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