As you’ve probably heard by now, it’s an amazing time to buy a home. It’s an even better time to build a new home. If you’re like most folks that are considering new construction for the first time, you likely have a long list of questions. To get you started, we picked 5 and answered them below.
- Why should I choose new construction over resale?
With new construction, you get to pick the floorplan and features you want, and you’ll save significantly on your utility bills. For more great reasons, check out this article from NewHomeSource.com.
- What the difference between a to-be-built home and a move-in-now or “spec” home?
With a to-be-built home, the choices are all yours—the homesite, the plan, the features, etc. In addition to to-be-built homes, many builders also offer move-in-now or “spec” homes that are great for buyers that want to move more quickly. These homes are usually within 90 days of completion, and often have many of the features and selections already finalized.
- Why do I have to choose a homesite before I can finalize my plan?
Due to some homesite restrictions such as the width of the site, it’s slope, etc., it’s important to choose your homesite before you can truly finalize your home plan and design features.
- What features do I get to customize when I build a home?
The features that a builder will allow you to customize vary widely by builder. At Brookfield, we offer a wide range of structural and design options to make your home truly your own.
- What’s the difference between a construction loan and a turn-key/permanent loan?
There are several differences between these two loan types. With a turn-key agreement, your homebuilder is responsible for all costs during construction. All that is required of you is your initial down payment. Full payment isn’t due until you close on the home when construction is complete.
If you opt for a construction loan, you will close on your loan at the beginning of construction and simply modify the loan to a permanent loan once construction is complete. You are responsible for making interest-only payments on the loan throughout construction of your home.
There are advantages and disadvantages to both types of financing. For more details, talk to your lender. Or, contact one of our preferred lenders today.