Private financing to build then refinance once built

[Brad Milton]

Hi all,

This is my first post and my first house actually.  I am currently in the beginning stages of having a house built with private financing, then once the house is complete, refinance to repay the lender.  I was curious if any of you have any pointers on what I should do or avoid in this process?  I was also wondering what your take would be on putting up more of my own money to borrow less from the private lender or just borrow the total cost of the construction from them?  I am guessing it will be roughly $200,000 (plus they are asking for 6% to borrow. So $12,000 in interest if i borrow the total) total for the build.  I know I can always put money down before I refinance to get a lower mortgage payment but not sure if it is wiser to use my money at the start and just borrow less.  Any input or thoughts on this is much appreciated and I look forward to talking to you all!

Brad