FREQUENTLY ASKED QUESTIONS

There are many advantages to buying a newly constructed home, including:

• New home warranties.
• Lower maintenance costs.
• Floor plan options.
• Low financing opportunities.
• Choice of interior and exterior finishings.
• Energy efficiency.
• Latest designs and materials.

The most important concerns for any new homebuyer looking for a builder are quality and professionalism. You want a quality house built by a professional builder. And there are certain qualities common to all professional homebuilder’s:

1. Building professionals believe homes should be well designed, well constructed, and located in attractive communities, accessible to educational, recreational, shopping, and religious facilities.
2. They demonstrate a high level of ethics and have a strong sense of responsibility to their customers and their community.
3. Honesty is their guiding business policy. They deal fairly with customers, employees, contractors, and suppliers.
4. Professional builders achieve high standards of health and safety.
5. Professional builders perform to the standards of the NAHB residential construction performance guidelines in effect at the time of construction.
6. Professional builders belong to homebuilder or other professional organizations. Dues-paying members of building industry associations are established members of the community. Builder associations encourage their members to research and utilize new materials, building techniques, and equipment. Building Associations encourage innovative methods of home financing to maximize Return on Investment for homebuyers.

“Do you need a bigger master bath or an updated kitchen? Maybe you need an extra bedroom or a complete home renovation?

Whatever the scope, the first step in any remodeling project is to find the right remodeler. Someone you can talk to and someone you can trust … because your relationship with your contractor is a partnership that involves one of your most important assets – your home.

Here are some important points to remember when you’re choosing a remodeler:

• Look for ideas in magazines, homes of friends, family and neighbors, and remodeled home tours.
• Be upfront and honest with your remodeler when discussing your budget and lifestyle. With good information, your contractor will help you maximize your project within your limits
• Make sure you and the prospective remodeler communicate well. If it’s a good fit, ask for an up-to-date reference list and talk to recent customers. Find out if their project was completed to their satisfaction, on time, and on budget. Ask the remodeler if you can visit a recent project.
• Design is a key element in the remodeling process. Some remodelers have design/build firms. That means they have designers and architects on staff or have agreements with freelance professionals to provide you with a one-stop design/build solution. Other remodelers have architects they know and trust, and will make a recommendation to you. Or, you can hire your own architect or design professional. Either way, utilizing the services of a good architect or design professional is the best way to get the results you want from your remodeling project.
• Professional remodelers perform to the standards of the NAHB Remodelers Council Code of Ethics: All work will meet the requirements as set forth in the “Residential Construction Performance Guidelines for Professional Builders and Remodelers”.
• Professional remodelers belong to homebuilder or other professional organizations. Dues-paying members of building industry associations are established members of the community. Builder associations encourage their members to research and utilize new materials, building techniques, and equipment. Building Associations encourage innovative methods of home financing to maximize Return on Investment for home remodelers.

Most people finance with a loan called a mortgage. A mortgage is a long-term loan that uses real estate as collateral and is used to purchase a home. A home can serve as collateral for more than one mortgage under certain conditions. This is called a second mortgage and is typically used to finance home improvements or a major purchase. Mortgages are often described by their terms, such as the time frame for repayment and whether the interest rate is fixed or adjustable. Here are a few of the most common options on the market today :

Fixed-Rate Mortgages 
These are the most popular type of mortgage. They offer an interest rate that will remain the same for as long as you have your loan. Stretching out your repayment term means your monthly mortgage payment will be less than it would be with a comparable shorter-term mortgage.

Adjustable-Rate Mortgages (ARMs)
ARMs offer an interest rate that adjusts periodically to keep it in line with changing market rates.

Home Improvement Loans 
Home Improvement loans allow you to buy and renovate a home, or repair or improve your home. The amount of the loan is based on the as-completed, appraised value of the home.

VA Mortgages
If you are a veteran or active duty military personnel, you may be able to obtain a loan guaranteed by the Department of Veterans Affairs (VA). VA-guaranteed loans require little or no down payment.

Pre-Settlement Walk Through Tips

Before you go to settlement on a new home, you and your builder will “walk through” the house to conduct a final inspection. The walk-through provides an opportunity for you to learn how your new home works and to spot items that need to be corrected or adjusted.

Often, a builder will use the walk-through to inform buyers about:

• The operation of the house’s components.
• The buyer’s responsibilities for maintenance and upkeep.
• Warranty coverage and procedures.
• The larger community in which the home is located.

To apply for a mortgage, check our list of lender members who are CVHBA members – They have a variety of products for new construction lending and remodeling loans.