I recently spoke with Mark Downing from CornerStone Homes about new home construction. We have both been seeing a lot more people finding great buys on homesites and with that comes the need to find a builder you can trust. Here are some helpful tips to finding the right builder:

1. Get recommendations! Ask your family, friends, coworkers or your real estate agent about who they recommend.
2. Reputation – Make sure the builder has a permanent business location and a good reputation with suppliers and local banks.
3. Check with Previous Customers.
4. Relationship – Make sure you enjoy working with the builder because you will be in close contact with them throughout the entire construction process.
5. Be cautious! Be cautious of unusually low-priced bids.

Mark and I also discussed down payments. What type of down payment is required to build a new home today? I found out there are FHA Programs available for construction/perm loans that you can qualify for with as little as 3 ½ percent down. That makes building an option for almost anyone that would  qualify to purchase a home.

There are two common ways to finance a new home – one is for the builder to finance the home construction and the buyer obtains a permanent mortgage. The other is for the buyer to obtain a combination loan where the construction loan becomes permanent at the end of the construction period.

I hope these tips help you make the right decision when choosing a builder! Enjoy Mark’s insightful comments in the video above!