Dear Jan: We want to have a home built so we are looking at buying a piece of land. Our problem, though, is that if we buy the land and pay it off in full, then we don’t have money to build with. Is there a way around this problem?   —MML

Dear MML: Typically, most people when building their new home get an All-In-One Construction Loan. Once you have met with a builder and the lender, you will be advised to write a contract for your land. Your local real estate broker can help you with that.

The lender and/or builder will advise you on how many days for your feasibility study and how many days/months until you should close on the land. When the time comes to close on the land, this will be the first draw out of your construction loan. The land gets paid off in full at that time.

The lender will advise as to how much of your cash you will need to put down, what your interest rate will be, etc. The lender will order an appraisal to make sure you are not overpaying for the construction of your new home.

There are lots of steps, but a good builder and lender can make the process easy. We are fortunate to have both in our area. Let us know if you need a recommendation.

— Jan Zufelt is an agent with John L. Scott Real Estate in Kingston.