In today’s housing market, homeowners and potential buyers are carefully considering all options for the next step in their homeownership journey. Should those in search of a new home buy or build? Or should homeowners consider renovating?
“There is a lot to consider when making this decision, and the complexities and process can seem overwhelming,” said Amber Davis, senior vice president and mortgage loan manager with Arvest Bank – Central Oklahoma. “My advice is to consider each choice carefully.
Buying a Home
When buying a home, understanding which lending options are the best for your situation can feel overwhelming, especially in today’s rate environment. Find a local mortgage lender who understands your needs and your housing market. They can help explain the types of mortgage loans available to you.
“Yes, interest rates are higher than the historical lows from 2021 and before,” said Davis. “It’s important to remember that interest rates are cyclical, and there’s a chance you could refinance to a lower rate later.”
Davis advises to look beyond the rate. Consider factors such as loan terms, fees, and whether your loan will be serviced locally or sold to another lender. “There are benefits to having a local bank service your mortgage, especially if you ever need to file an insurance claim for future damage,” she added.
Building a Home
Getting caught up in the fun design details can be easy when building a home from the ground up, but the process requires careful planning and financial preparation. Unlike traditional mortgages, construction loans are short-term loans that provide funds in stages as the building progresses, Davis explained. It’s important to understand
the draw schedule and inspection process to ensure timely disbursements.
Once the home is completed, the construction loan is often refinanced into a traditional mortgage that has a
longer term. There are also options if you plan to buy land and build on it. “You can combine financing for the lot construction and the home,” Davis said. “If you already own the land, you could use it as collateral for the construction of a home.”
Renovating a Home
Low inventory and higher interest rates have made renovations popular. According to a 2025 survey by This Old House, 48% of homeowners reported plans to renovate their homes. Whether you’re upgrading your current home or purchasing a fixer-upper, renovations can enhance both comfort and property value. “Depending on the scope and size of the project, homeowners have several financing options to consider,” Davis said. “Those could be credit cards or tapping into their home’s equity with a home equity line of credit (HELOC) or a cash-out refinance.”
A HELOC is a revolving line of credit that you can draw from at any time throughout the borrowing period, typically 5 to 10 years. This makes it helpful for funding multiple home improvements or a variety of needs, Davis
said. A cash-out refinance is a mortgage that replaces your existing loan with a new, larger one, allowing you to
convert a portion of your home’s equity into a lump-sum cash payment at closing.
Davis added that another option is to take advantage of a rehab loan, which can help finance the purchase of a home and its renovation with a single mortgage.
Whether you’re buying, building or renovating a home, Arvest Bank can help turn your vision into reality. Learn more at arvest.com/homeloan.
