San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-07

whenever l got into bank l get
rattled,' Stephen Leacocx confesses
in beginning one of his inimitable
sketches. The average man who has
overcome his misgivings at the cages
and bars of bank can sympathlzc
with him. for who among us has not
turned cold at the thought of financ-
ing the building of a home!.
And yet why should he? Is it the
leech-likc mortgage of the old melo-
drama-the rapacity of the money
lenders as depicted in The Mer-
chant of Venice" or the thought of
dispossession on Il bitter winter night
that has unjustly prejudiced many of
the uninitiated to this particular
phase of modern-day business credit!
Fortunately for the would-be home
builder, within the past decade there
has come a systematizing of loans and
credit with respect to the home-build-
er and his problems that has taken
away much of the red tape and diff
culties. There is no longer reason
save an uncomfortable timidity-
that need prevent a man with posi-
ton. who is paying rent, from build
ing his own home.
1t is desirable. before any finan-
cial recognitions are entered into. to
ascertain as nearly as possible. just
what your proposed home is to cost.
Plans and specifications. including
such details as the furnace, electric
light fiXtures.e and interior finish.
should be submitted to various con-
tractors for estimates. With these fig
ures you are prepared TO talk bust
ness.
Clear Lot Desirable.
Unless your home is to be built
under the contract system under the
direction of Il building company.
it is always advisable to have your
lot paid for. This is 4 tangible evil
dence of good faith on your part that
cannot fail making good impression.
In addition TO having the lot, a
sum of monuey between 10 and 20 per
cent of the total value of the house
you propose to build is almost neccs-
sity.
If you are paying from 20 to %
Per cent of your income for rent.
you have that as the nucleus to
make your regular payments. month
by month. In addition TO this. such
sums as you would naturally save dur
ing the year. can be added TO the pay
ments. except the amount required to
pay the interest on your deferred pay
ments. and such necessary items as
fuel, light, taxes, insurance and up
keep.
it is advisable that your home cost
no more than the total sums you are
prepared TO pay over period of ten
or fifteen years. Even though that
is only $40 per month--for instance
over a period of ten years it will
amount to $500.
Briefly, there are three methods
OF home financing. One is paying
on contract. another is borrowing on
first and second mortgages. and the
third is by membership in building
and loan association.
IL you have clear title TO the lot,
and arc able to make a cash payment
of from 10 to 20 per cent of the house
value. there are number of home
building companies that will take
over your lot and build the house UNI
der the contract system. The COM
pany will hold the title to the house
until the monthly payments, usually
one per cent of the total, amount to
the total value.
The Next Step.
Under this plan, however. you must
look at your contract with the closest
scrutiny. Also, consider the financial
and business reputation of the COM
pany you are dealing with. and choose
none but the best. With the contract
system you have the advantage of
dealing with one person throughout
the entire transaction. but it has more
stringent provisions in that disposses-
sion may take place in GO days. where
as in the case of a mortgage you are
safeguarded for n much longer time.
Assuming that your lot is paid for.
and you have the means to make an
initial payment, then it will not be