If you decide to build a custom home and hire the builder yourself, you may be required to get a construction loan, which you will then substitute for a regular mortgage when the house is built.
Jose Dias, REALTOR | (623) 418-5700 | Jose@MyFirstHouseAZ.com | http://www.MyFirstHouseAZ.com
John C Johnson "JJ"
Solutions Real Estate
Valley Solutions Team
REALTORÂ®, Buyer's Consultant
Direct (480) 606-2027
eFax 1-(888) 958-2554
Build times have increased from 3 months this last year to 5 or 6 months and prices are expected to increase by more than 10% in 2013.
Since you are asking about the mortgage, another good point to make is do not fall into the trap of using the Builder's lender, in case that is brought up. They may or may not have one, depending on the size of the builder, etc.,
Yes, they may offer some incentives to do so, even though that is not suppose to happen. I have seen many times where the upfront incentives are far-out weighed by the money lost over time due to the higher interest rates offered by the builder's lender. Exercise your rights as a consumer under RESPA (Real Estate Settlement Procedures Act) and work with a lender whom has YOUR best interests in mind, just as the realtors below are urging you to do with an independent realtor.
Bill Parker, Loan Officer
AZ Lic# 09011570
CPA--Licensed, no longer practicing
GenCor Mortgage Inc.
15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
(O) 480-525-8496, EXT 743; (M) 602-565-3646; (F) 480-436-5226
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If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
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If you are looking at a new build you may want to talk with a real estate professional. Do not fall into the trap of having the Builder represent you and the themselves. Trust me they are not looking out for you.
As a Real Estate Professional I have represented buyers on a number of new builds and being able to negotiate additional discounts for them that they would not normally have gotten.
If you would like to discuss your options, please call me at 602-799-5239 or email me directly at email@example.com
Keller Williams Sonoran Living
Christy Crouse is correct. Your new home is the collateral for the loan, & will not qualify for a new home loan until the home has a Certificate of Occupancy. You can pre-qualify for the loan which is what the Builder will want to see, a "Pre-Qualification Form" from a lender.
Many unknowing buyers make a big mistake when buying from a Builder by using the Builder's Real Estate Agent to buy their home. Be sure you find a good, knowledgeable Real Estate Agent to represent & protect your interests, not the Builder's interests. Someone like Christy Crouse who answered your question, below, who will review the Builder's language in the Purchase Contract to protect your interests when negotiating your offer for your new home. I have worked with Christy for years & know her to be one of the best Realtor's out there, very familiar with the Chandler market.
Please feel free to contact me directly if you have any further questions, I'd be glad to help.
All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!