What to know before buying land and financing your dream home
By Taylor Owens
Sponsored Article
For many people, building a custom home is the ultimate dream. It is the opportunity to create a space that’s designed specifically for the way they want to live, but unlike purchasing an existing home, building from the ground up requires careful planning long before construction begins.
From choosing the right piece of land to selecting a builder and securing financing, every decision early in the process lays the foundation for a successful project.
One of the biggest, and often overlooked, decisions comes before a single blueprint is finalized: choosing the right builder.
“The most important thing that you would do is partnering with the right contractor,” Leo BonGiovanni, construction loan originator at Whitefish Credit Union, said. “Finding a person who understands the local market, who has a proven track record of building in your local area is the most important thing.”
The right builder does more than construct a home. An experienced local contractor understands permitting requirements, has established relationships with trusted subcontractors, and knows how to navigate the unique challenges of building in Montana. Just as importantly, they communicate openly throughout the project, helping homeowners understand how design changes may affect both timelines and budgets. Because changing builders midway through construction can be both costly and complicated, taking the time to find the right fit upfront is one of the smartest investments a future homeowner can make.
Just as important is resisting the urge to jump straight into designing the home after purchasing land.
While it’s tempting to begin drawing floor plans right away, spending time on the property first often leads to a better final product. Walking the land at different times of day, considering where natural light enters, taking in the views, and understanding how the home will fit naturally within the landscape all help inform smarter design decisions.
“The more time you spend getting to know your land, and really fine-tuning that design, I think the happier the borrower is with their end product,” BonGiovanni said.
Once a homeowner has selected a builder and developed plans, financing becomes the next major milestone. Unlike a traditional mortgage, which finances a completed home, a construction loan is designed around the entire building process. Borrowers provide building plans, contractor bids, material specifications, and project budgets before construction begins, allowing both the borrower and lender to understand the complete scope of the project from day one.
BonGiovanni describes construction financing as “stress testing your plan out the gate to make sure that you can afford your vision.”
Construction financing also differs from a traditional mortgage in how funds are distributed. Rather than receiving financing all at once, money is released in stages as the home progresses through key milestones. As the foundation is poured, framing is completed, utilities are installed, and the project moves toward its final finishes, the lender works alongside both the borrower and builder to help ensure construction stays on schedule, remains within budget, and continues meeting the agreed-upon plans. That ongoing collaboration helps keep projects moving from groundbreaking to completion.
That planning becomes especially important in Montana, where construction costs can vary significantly depending on location. Building in more remote areas often means transporting materials longer distances, coordinating subcontractors across multiple communities, and working around seasonal weather that can affect construction schedules. Even experienced builders must account for logistics that aren’t always obvious at the beginning of a project, making realistic budgeting and thoughtful planning essential before construction ever starts.
Rather than waiting until every detail is finalized, Whitefish Credit Union encourages prospective homeowners to begin the conversation early. An initial meeting allows borrowers to discuss their goals, establish realistic budgets, and better understand what to expect before committing to a project.
BonGiovanni also encourages homeowners to think beyond the house itself. Before finalizing a design, it’s important to understand everything that comes with the property—from homeowners association requirements and permitting considerations to how the home will sit on the land. Addressing those details early can help avoid costly redesigns and make the building process much smoother.
“Having that initial contact before the process begins, I really think can help people have sensible benchmarks as they’re going through the lengthy process,” BonGiovanni said.
From purchasing the land to financing construction and ultimately transitioning the completed project into a traditional mortgage, Whitefish Credit Union works alongside borrowers throughout every stage of the journey. The local lending team understands the unique challenges of building throughout Montana and partners with both homeowners and builders to help projects stay on track from the first conversation to move-in day.
Building a custom home is one of the biggest investments most people will ever make. With thoughtful planning, the right builder, and a financing partner that understands the construction process from start to finish, homeowners can spend less time worrying about the logistics and more time looking forward to the day they finally walk through the front door of a home built entirely for them.
