Posted on: 18th Feb, 2010 12:43 pm
Haven't applied for home loan yet, but have been getting an idea of where I would like to purchase. So far, my husband and I are very interested in a new construction site for purchase. I'm just curious and hope this is not too dumb of a question; "do you pay for closing after the is completed and inspected or is this finalized before the home is completed"? This all new to me, will be a first time homebuyer. Thanks for the input!
I would esp. like to get your comment. I like the advice that you give, seems to be pretty reputable. Thanks a lot. No offence to anyone else, willing to take all comments.
Not sure who exactly you were looking to get an opinion from. Either way, you will get mine....
You will have what seems like two closings. First, you will sign docs up front for your construction loan and will also have to put some money down up front. Then, when the project is completed, you will sign docs again for your permanent loan.
There are some construction loan programs that are all inclusive where the same lender will put a program together for you to handle the construction costs and your final loan program.
Do NOT give a builder any money until you have financing secured AND an attorney has reviewed your contract prior to signing it.
You will have what seems like two closings. First, you will sign docs up front for your construction loan and will also have to put some money down up front. Then, when the project is completed, you will sign docs again for your permanent loan.
There are some construction loan programs that are all inclusive where the same lender will put a program together for you to handle the construction costs and your final loan program.
Do NOT give a builder any money until you have financing secured AND an attorney has reviewed your contract prior to signing it.
