Hey, this is a little bit off topic, but I figured this would be a good place to ask some of my questions. My fiance and I are planning to buy a new home fairly soon. We are leaning towards having a new place built. We've talked to the realtor and the builder and they say that if we bought now, we'd have the place ready for move in by December, which is just about the timeframe we want. Now my question is this: how will the mortgage and down payment, etc, work with this? I assume we'll have to be approved for a loan when we first tell them to start building our house, right? When will we have to give the down payment? Now or in December? When will we have to start paying the mortgage? Now or in December? If we don't have to pay the down payment or the mortgage until December, do we have to give anything up front? Sorry for so many questions, but this is a first time experience for us and I figured you guys would be able to help out. Thanks, Kevin
My brother bought a house that was in a new subdivision. They checked his credit and got the mortgage company working on the loan. He put $2000 in escrow while the house was being built. He did not pay down until closing and you would never pay a mortgage payment until you have closed and 30 days has passed!
Kevin Normally, you will not be required to pay all of the DP until you close in Dec. You will be required to put up ernest money, the amount will be determined by the builder, you, and the realtor...I would go around 5K or less, if you have it avail. You will probably need to at least start the mortgage process early on in the construction. Since you are not getting a construction loan you won't have any mortgage payments until after you close on the completed house(means there is an Occupancy Permit). Good luck fla-tan
