What are the advantages of building a new home?
There are several advantages to building your home over buying a resale home. You are able to pick out the style of the home, the floor plan, the interior/exterior colors, flooring, fixtures, lighting and other finishing touches. Your home will be just the way you want it the day you move in without doing any costly (and messy) remodeling. You will have peace of mind knowing that your home is brand new top to bottom, built exceptionally well, and very energy efficient.
How long does it take to build a new home?
It will take 120-150 days depending on the schedule and time of year.
What would my time involvement need to be?
Your time involvement during the building process would revolve around picking out your lot, your home design/floor plan and your personal selections. This will be about all you will need to do. When it is time to make personal selections, you will be guided through the process.
How do I know what price range I should be looking in?
Your Real Estate Agent should be able to pre-qualify you to see how much home you should be able to afford. It is a good idea to have a mortgage consultant pre-approve you. This is a more accurate idea of what you can qualify for since they are able to use your credit score as part of the pre-approval process. If you are not already working with a mortgage lender, your Real Estate Agent should be able to suggest several that would be happy to see what amount you can be pre-approved for.
Is the financing process for a new construction home different than a resale home?
The mortgage financing process is the same for purchasing a new or resale home. For both, it is a good idea to be pre-approved by a mortgage consultant prior to going under contract on any home. Once under contract, you will need to apply for your loan, the lender will need to issue a mortgage commitment letter and do an appraisal on the subject home. If new construction, the home will need to be completed before this can be done.
When should I apply for a mortgage?
You should apply for your mortgage as soon as you go under contract. You may choose to float your interest rate until you are within 60 days of closing.
When should I reserve my building lot?
The first thing you should do is reserve your building lot. Lot reservation deposits are refundable. You wouldn't want to do all leg work (getting pre-qualified with a lender and picking out the home you want built) only to come back to find the lot you want is no longer available!
I am ready to build my next home. When should I list my current home?
You should list your home immediately to give yourself ample time to sell. It can't sell if it's not listed! And you wouldn't want to miss a potential buyer that is looking right now. Your realtor will coordinate the closing date timeline.