Financing New Construction in Southeast Idaho: Why Talking to InterWest Mortgage First Is the Smartest Move

June 27, 2025 by InterWest Mortgage

When it comes to building a new home, the excitement of customizing every feature—from floor plan to finishes—can overshadow one crucial step: financing. Whether you’re planning to build in Idaho Falls, Rexburg, Rigby, Shelley, Firth, Pocatello, or Iona, understanding the new construction loan process and your financing options is essential. That’s where InterWest Mortgage comes in.

At InterWest Mortgage, we not only offer some of the most competitive construction loan rates in Southeast Idaho, but we also walk you through every step of the process, so you’re never navigating the complex world of home financing alone.

Why You Should Talk to a Lender First Before Building or Buying New Construction

Many people assume the first step in building a home is hiring a contractor or finding a suitable piece of land. In reality, your first conversation should be with a trusted lender. Here’s why:

Pre-approval provides clarity on your budget: Knowing how much you can borrow helps you design a home within your financial comfort zone.

Builder relationships: Lenders like InterWest Mortgage often have preferred relationships with builders, which can streamline the process and reduce costs.

Avoid surprises: Understanding interest rates, down payment requirements, and timelines early prevents delays or financial setbacks later.

By connecting with InterWest Mortgage early in the process, you’re better prepared to work with builders, realtors, and even city officials on permitting and zoning.

Loan Options for New Construction in Idaho

Financing a new build isn’t the same as buying an existing home. Construction loans are more complex, but with InterWest Mortgage, the process is simplified and streamlined for a more straightforward experience. We offer a variety of construction and end-loan options suited for residents in Idaho Falls, Rexburg, Rigby, Shelley, Firth, Pocatello, and Iona.

1. Construction-to-Permanent Loan

This popular option combines two loans into one:

Phase 1: Funds are released to the builder in stages (called draws) as construction progresses.

Phase 2: Once construction is complete, the loan automatically converts to a permanent mortgage (usually a 15- or 30-year term).

Why it’s ideal: You only have to pay closing costs once, and you can lock in your mortgage rate early, which is great for the ever-changing market in Idaho.

2. Stand-Alone Construction Loan

This is a short-term loan (usually 12 months) to fund the construction phase only. After the home is built, you’ll need to apply for a traditional mortgage to pay off the construction loan.

Why it’s ideal: It can offer more flexibility during the build, especially if you’re selling another property or expecting a financial change in the near future.

3. Owner-Builder Loan

Planning to act as your general contractor? This is a specialized loan that supports self-managed construction.

Important note: These loans can be harder to qualify for and require solid experience and a detailed plan. InterWest Mortgage can help assess if this is right for you.

4. FHA Construction Loans

Backed by the Federal Housing Administration, these are great for buyers with lower credit scores or smaller down payments. InterWest Mortgage is experienced in FHA lending and can guide you through the extra paperwork.

Available in: Idaho Falls, Rexburg, and Pocatello, where FHA loans are standard among first-time buyers.

5. VA Construction Loans

For eligible veterans or active-duty military members, VA construction loans offer benefits like no down payment and competitive rates.

Note: These require VA-approved builders and strict inspections, but we’ll walk you through every detail.

Why InterWest Mortgage Is the Best Choice for New Construction Loans in Southeast Idaho

When choosing a lender, you need more than low rates—you need a partner. Here’s why InterWest Mortgage is the go-to choice for so many homebuilders in Idaho:

Local Expertise

We’re based in Idaho and deeply familiar with building regulations, market trends, and land zoning in Rexburg, Idaho Falls, Rigby, Shelley, Firth, Pocatello, and Iona.

Competitive Rates

We consistently offer some of the lowest interest rates and closing costs in the region, providing you with more financial flexibility for upgrades or landscaping.

Streamlined Process

Our team guides you through the pre-qualification process, application, builder coordination, draw schedule management, and final closing. We handle the complexity so you don’t have to.

Trusted by Builders

InterWest Mortgage is a preferred lender for several custom and spec home builders throughout Southeast Idaho. That means smoother communication, faster approvals, and fewer surprises.

What to Expect in the Construction Loan Process

Here’s a simplified breakdown of what happens once you decide to build your dream home:

Pre-approval – We evaluate your credit, income, and construction plans to issue a loan pre-approval.

Builder and Plan Review – We’ll need details about the contractor, plans, budget, and timeline.

Loan Processing – Appraisals and underwriting occur. We’ll work with your builder on the drawing schedule.

Closing – You sign the loan documents, and the builder receives the go-ahead to begin construction.

Construction Phase – We disburse funds in stages based on the completion of work and inspections.

Conversion to Mortgage – After the final inspection and occupancy certificate are received, your loan converts to a permanent mortgage.

Final Thoughts: Start Your New Construction Journey the Smart Way

Whether you’re building in Idaho Falls, buying land in Rigby, or considering a modular home in Pocatello, the smartest first step is to speak with a knowledgeable lender like InterWest Mortgage.

We’ll explain your options clearly, ensure you’re financially ready, and walk you through each step with the care and transparency you deserve.

Ready to get started?

Contact InterWest Mortgage today for a free consultation and see why we’re Southeast Idaho’s trusted source for construction loan financing.

📍 Serving: Idaho Falls, Rexburg, Rigby, Shelley, Firth, Pocatello, Iona

Understanding Mortgages: Finding the Right Fit for Your Finances

September 27, 2024 by InterWest Mortgage

Navigating the mortgage landscape can be difficult, especially given the number of alternatives and financial responsibilities involved. Understanding the various types of mortgages, comparing lender rates, and knowing when to seek professional guidance will help you make informed decisions that are in line with your financial objectives.

An Overview of Different Mortgage Types and Terms

Mortgages exist in a variety of sorts, each with its own set of terms and perks. The most prevalent mortgages are fixed-rate and adjustable-rate. A fixed-rate mortgage maintains a consistent interest rate for the duration of the loan, making monthly payments predictable. This type is great if you intend to stay in your house for a long time and want the assurance that your payment will not fluctuate.

An adjustable-rate mortgage (ARM) has a lower initial interest rate that varies on a regular basis based on market conditions. While ARMs can save you money in the short term, your payments may increase if interest rates rise. These are ideal if you want to sell or refinance before the rate adjustment period.

There are other specialist loan kinds, such as FHA loans, which are insured by the Federal Housing Administration and have lower down payments and credit scores, and VA loans, which are available to veterans and active-duty military members with no down payment in many circumstances. Understanding your options will allow you to select the mortgage that best meets your financial condition and future aspirations.

How to Compare Lender Rates and Fees Effectively

Comparing mortgage rates and costs from various lenders is important for getting the best deal. Begin by seeking quotations from different lenders, paying attention not only to interest rates, but also to the Annual Percentage Rate (APR), which includes both the interest rate and any additional costs. This gives a more accurate picture of the loan’s overall cost.

Look for usual fees including origination, appraisal, and closing costs. These can differ greatly amongst lenders, affecting the total affordability of your mortgage. Consider the loan terms, including the length of the mortgage and any prepayment penalties. By carefully examining these criteria, you may determine which lender provides the best value for your circumstances.

The Role of a Mortgage Broker in Finding the Best Deal

A mortgage broker serves as a mediator between you and potential lenders. They have access to a wide variety of loan options and can assist you in finding a mortgage that is appropriate for your financial circumstances. Brokers frequently have existing contacts with lenders, which enables them to negotiate better rates and terms on your behalf. Brokers charge a fee for their services, but the potential savings may outweigh the cost. If you’re new to the mortgage process or seeking specialized lending choices, a mortgage broker can be a great help.

Pre-Approval vs. Pre-Qualification: What They Mean for You

Understanding the distinction between pre-approval and pre-qualification is essential when looking to purchase a property. Pre-qualification is an informal process in which a lender estimates how much you can borrow based on self-reported financial information. It’s a good initial step for determining your budget, but it doesn’t hold much weight with sellers.

Pre-approval, on the other hand, is a more formal process in which a lender verifies your financial information and makes a conditional commitment to a certain loan amount. A pre-approval letter shows sellers that you are a serious buyer with the financial resources to finish the transaction, giving you a competitive advantage in a hot market.

Refinancing Options for Future Financial Flexibility

Refinancing your mortgage might provide financial flexibility in the future, allowing you to take advantage of reduced interest rates or change your loan conditions. Common reasons to refinancing include lower monthly payments, shorter loan terms, or converting from an ARM to a fixed-rate mortgage for greater stability. Some homeowners refinance to access their home equity through a cash-out refinance, which can be used to pay for home upgrades or to consolidate debt.

When considering refinancing, it is important to balance the costs, such as closing fees, against the potential savings. This ensures that refinancing is consistent with your long-term financial objectives.

Finding the appropriate mortgage involves more than just selecting a loan with a low interest rate. Understanding the various mortgage kinds, comparing lender rates and fees, utilizing the experience of a mortgage broker, and evaluating both pre-approval and refinancing possibilities will help you acquire a mortgage that best meets your financial needs and future plans. Make informed decisions now to ensure your financial future tomorrow. Call InterWest Mortgage now to get started!

Stretching Your Dollar: Smart Strategies for Home Buying on a Budget

September 13, 2024 by InterWest Mortgage

Purchasing a home is one of the most important financial decisions you will make, and doing it on a budget can be overwhelming. However, with careful planning and clever techniques, you can realize your dream of homeownership without breaking the bank. Here’s how to get the most of your money when buying a home on a tight budget.

Understanding Your Financial Health Before Home Shopping

Before you begin perusing listings and attending open houses, it’s important to understand your financial situation. This phase entails more than just understanding your income; it also requires a comprehensive picture of your credit score, outstanding debts, monthly spending, and savings. A strong understanding of these elements can assist you in determining how much house you can buy and the type of mortgage that is appropriate for you. Take the time to analyze your credit report and address any anomalies or areas for improvement. Remember that the higher your credit score, the better the terms on your mortgage, which can save you thousands of dollars over the course of your loan.

Exploring Government-Backed Loans and First-Time Buyer Programs

If you want to buy a home on a tight budget, look into government-backed loans and first-time buyer programs. These alternatives frequently have reduced down payment requirements and more advantageous terms for those who qualify. For example, FHA loans are popular among first-time buyers since they need as little as 3.5% down and have more forgiving credit standards. VA loans provide similar benefits to veterans and active-duty military members, with no down payment necessary in most circumstances. In addition, many states and localities provide programs that aid first-time buyers with down payments, closing costs, or tax credits. Researching and utilizing these programs can considerably minimize the financial burden of purchasing a property.

Prioritizing What You Need vs. What You Want in a Home

When looking for a budget home, it’s necessary to discern between your necessities and desires. Start by noting the non-negotiable features, such as the number of bedrooms, proximity to job or school, and neighborhood safety. Next, make a list of amenities that would be good to have but are not must-haves, such as a gourmet kitchen, a huge lawn, or a swimming pool. Prioritizing your demands allows you to focus on homes that satisfy your core criteria while avoiding features that may exceed your budget.

The Art of Negotiation: Tips for Getting the Best Deal

Negotiation is an effective strategy in the home-buying process, especially when you’re on a limited budget. Don’t be hesitant to haggle over the price of the home, closing expenses, and other sale details. Begin by researching comparable homes in the region to determine their market value. Use this information to make a fair offer based on the home’s condition and the current market. Consider negotiating for repairs or credits if the home inspection reveals problems. Remember, everything is negotiable, and being prepared can save you a lot of money.

Long-Term Planning for Homeownership Costs

Buying a home entails more than just the buying price and the mortgage loan. Homeownership comes with long-term costs, such as property taxes, insurance, maintenance, and possibly homeowner association fees. Planning for these fees from the start can assist ensure that you can afford your property in the long run. Consider creating an emergency fund expressly for unanticipated repairs or maintenance needs. This proactive strategy will help you avoid financial stress and keep your home a source of stability and comfort.

Purchasing a property on a budget involves patience, planning, and intelligent decision-making. Understanding your financial health, exploring available programs, prioritizing requirements over wants, learning the art of negotiating, and preparing for long-term expenditures can allow you to stretch your dollar and make a smart home purchase that will benefit you for years to come. Today’s market might be difficult and daunting, but with the right team, it doesn’t have to be. InterWest Mortgage is always up to date on current information, and we understand how to deliver the finest service regardless of the state of the housing market. Happy house hunting!

Call us so we can help meet your lending needs.