The CVHBA understands buying or remodeling a home can be one of the most important decisions you’ll ever make. With this in mind, we’ve tried to help you by answering some typical questions – from shopping for a builder and getting financing, to insurance, to maintaining your home for maximum resale value and a lifetime of trouble-free, enjoyable living.
There are many advantages to buying a newly constructed home, including:
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:
“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:
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 :
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.
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:
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.