Home Purchase: Build To Order?

[Ja Rhule]

We really like the house and its seems exactly what we want. We can go and pick a lot we like and then the company will build a house for us from their 6 designs. It will take about 5-6 months for house to be build. How does this work? Do I need to get a loan and start paying for the house the second construction starts? Or do I make a down payment? I'm currently paying for rent and I'd hate to make almost 2 mortgage payments at the same time for next 6 months...

[CatofWar]

No idea dude, sorry. My van down by the river has been

PAid off for quite some time.

[mush]

I've done this before....you get approved for a loan then they draw against the loan after they get so far in the building process. You'll probably have to put some money down to get the contract, then get your own lender or use one of theirs to get approved. I've bought new houses like that before and it's good and bad. Good is that everything is new with a warranty...bad is that its being built in a neighborhood that's not established. If its got a HOA that usually sucks. New neighborhoods usually have few trees. Sometimes it takes awhile for values to be established and often your house is worth less than you paid until it builds stability and everybody has bought out the lots there.

[Ja Rhule]

Its actually built in established area. It's already in developed area. I was surprised to found out they were building new homes there. Also, I don't mind putting 3K down. I've been preapproved 2 weeks ago for a loan which is more than enough to cover this house cost. I don't mind if I have to pay 1-2 months before the house is complete.

[g5jamz]

Yes...there are building loans. Do you have a home now or is this the first.

[Guest]

Its actually built in established area. It's already in developed area. I was surprised to found out they were building new homes there. Also, I don't mind putting 3K down. I've been preapproved 2 weeks ago for a loan which is more than enough to cover this house cost. I don't mind if I have to pay 1-2 months before the house is complete.

Is this a neighborhood with one builder? If so, I've done this in the past, twice. You'll need to show builder that you are qualified for the loan. I had to put some earnest money down but that was all, I did not have to get a construction loan.

[Ja Rhule]

Yea, its one builder. Builder has 6 blue prints I can choose from. When I choose the house I want and lot I want, they will build it for me. What are my chances to get a reduced price on brand new home? They got 60 lots but so far only 8 houses were build.

[Guest]

60 lots only 6 floor plans?

As far as discount, you wont get much on a new house. Better off buying an existing home. If he has a spec house there you might be able to work something on that, but doubtful on one you start building.

[Ja Rhule]

Yea. They got lots of options and etc. You can have exterior out of stone, brick or vinyl. You can add extra rooms and bonus room option with full bathroom on 2nd floor and etc or just ranch without 2nd floor. I'm talking about only 1 blue print. Lots of flexibility.

[Guest]

Where is the 'hood?

[Ja Rhule]

Right off 51 near lebanon rd in Mint Hill

[Hairless Cat]

Why would you want to be tied to one of only 6 designs? Is it money alone?

Stay away from vinyl siding, os board and plastic plumbing pipe.

[Ja Rhule]

I love the area and I love house design.

[MadHatter]

Big risk buying on a neighborhood with only 8 homes already built. Upside....lower cost (builder prices go up as the neighborhood gets closer. To done). However, living in a neighborhood with construction and empty lots kind of sucks. I did it once before and lived in a construction zone for several years. Was not fun.