Reply to Realtor for new construction

Forum Index » Real Estate

Reply to "Realtor for new construction"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]A PP chiming in. OP, sounds like you may be a bit new to new construction so here is a quick overview of what the process typically is with a builder like EYA:

-Initial appointment to select lot and structural upgrades. You typically put down a small reservation fee on your preferred lot at this point. At this meeting, you’ll get a big price list of all the options you can select from as well as the incentive package to help you noodle what you really want.

-You get pre-approved for the mortgage with either the builder’s affiliated mortgage company or one of the builder’s preferred lenders. They’ll approve you for the house with upgrades and also a cushion for your design center budget.

-You decide you want to pull the trigger, yay! You make any adjustments you want to what you originally picked out, sign a sales agreement and typically put down between 5-10% of the base price of the house. Some builders also require 20% of the structural upgrades and lot premiums. It’s a lot of money for a house that doesn’t yet exist, but only good part of this is that you’ll know you’ve basically already put down enough money to close.

-At this point, some builders will have you go through a more thorough qualification process and the lender will issue a note promising to give you a mortgage as long as X, Y, and Z conditions are met. This note is basically worthless because, of course, you’ll go through the REAL qualification process 90/60 days or so before closing and all of your finances and cash on hand at that point will be what will determine your mortgage conditions. You can lock your rate though!

-Note: you don’t have to ultimately use the builder’s lender/preferred lender, but they’ll likely offer you some additional credit in closing costs to do so. 
 
-In a few weeks, you’ll go to the design center. This is where you’ll pick out cabinets, countertops, tile, all that fun stuff. A lot of builders will require you put down 10-20% of the total amount of upgrades you picked. There are a lot of opinions about how much to upgrade at the design center, my advice is to always put your money into the kitchen and owner’s suite bath. It’ll make you happy and if you have to sell relatively quickly, usually a good bet.

And then you watch your house get built, hopefully on time! 90 days out, you’ll really start working on your mortgage. Honestly, it can be stressful but also a fun process. Hope this was helpful![/quote]
Insanely helpful! Thank you, PP![/quote]

Very helpful! I am going through this now, and my builder is currently six months behind schedule. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics