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Published on Jan 20, 2012
Mark Downing with CornerStone Homes and I sat down recently to discuss new home construction. We agreed we are both seeing a lot more people finding a great buy on lots and needing to find a builder. I thought it might be helpful to share some tips for finding a great builder you can trust.
1- Ask family, friends, coworkers or your real estate agent for a recommendation. 2- Make sure the builder has a permanent business location and a good reputation with local banks and suppliers. 3- Ask to speak with previous customers. 4- Make sure you will enjoy working with the builder. You will be in close contact with them throughout the construction process. 5- Be cautious of unusually low-priced bids.
One of the most important topics I discussed with Mark is 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 % 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.
Watch the video above to hear some of Mark's insightful comments!