60 Days and our builder hasn't broke ground!!!!

Asked by JMH, Texas Wed May 22, 2013

We have been approved by our bank to build a home and have found a builder. The builder said they are waiting for their bank to appraise the plans and specs for their interim financing so they can start. We signed the construction agreement April 1st ... almost 60 days ago! How long should something like this typically take? They have built this exact home before as it is their model that we looked at ... wouldn't it be based on that same job's appraisal? Just feel like we've sat on 2 months of valuable time. Is waiting 60-75 days normal from signing contract to breaking ground?

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6
Guy Gimenez, Agent, Austin, TX
Wed May 22, 2013
Q. "We signed the construction agreement April 1st ... almost 60 days ago! How long should something like this typically take?"

A. Your contract should state a time for the builder to start. If it does not, then you're at the builder's whim.

Q. "... wouldn't it be based on that same job's appraisal? Just feel like we've sat on 2 months of valuable time. Is waiting 60-75 days normal from signing contract to breaking ground?"

A. The interim lender may have concerns about the builder's exposure to market conditions (ie. over-leveraged, etc.) and is closely monitoring the bank's risk in approving interim financing. There are too many variables to know for sure, but your contract will always be your guiding document.
0 votes
Dallas Texas, Agent, Dallas, TN
Wed May 22, 2013
No professional can render any opinion for fact we don't have access to the executed agreement and not part of all the conversation which have taken place. Direct your questions to your Realtor or experts involved.

Lynn911 Dallas Realtor & Consultant
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972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

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0 votes
Tim Garrett, Agent, Lubbock, TX
Wed May 22, 2013
JMH-- were the construction plans and specs completed by April 1st? Do you own the lot or do they own the lot? Call me directly and we can visit about the options if you want.
Tim
0 votes
We are building the model home with just a few minor adjustments ...moving two interior doors which was completed on the plan April 7th ... I would assume that the plans/specs had been approved.t We have 12 acres in Abernathy and part of the deal is they are to buy that from us to be able to build on it ...they already have the appraisal on that.
Flag Wed May 22, 2013
Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Wed May 22, 2013
Since he has 13 in the works, he might be at the limit of his interin and need to get some closings to make room for more? Just a thought.

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas
Web Reference:  http://www.thecokerteam.com
0 votes
Barbara ... that's kind of what I am thinking ... hopefully a few will close by the 1st so we can get it moving!
Flag Wed May 22, 2013
Barbara ... that's kind of what I am thinking ... hopefully a few will close by the 1st so we can get it moving
Flag Wed May 22, 2013
Barbara ... that's kind of what I am thinking ... hopefully a few will close by the 1st so we can get it moving
Flag Wed May 22, 2013
JMH, Home Buyer, Texas
Wed May 22, 2013
Thank you ... I will look into that. They are a reputible builder here and have built many homes ... there are 13 in the works right now so they are either over extended or short handed .. either way - they need to perform or return my earnest money so I can move on
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed May 22, 2013
Doesn’t sound right to me, ask the builder where he is getting the construction loan, then call the bank and ask them what is the hold up? If the builder will not tell you where he is getting the loan it might be a signal that something is wrong. Check the public records to see if there are any liens filed against the builder.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
0 votes
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