This is the first house we are builiding we got a proposal that was decent enough for us to accept. We have a feeling that we need a little amount of buffer cash to be on the safe side as no price is set in stone and you will need a bit over the price of the proposal when it comes to closing on brand new built construction homes.. Can you tell me what the average % or amount over the price of the proposal you should expect to pay and have the bills add up to at time of closing??
2007-02-19 12:02:47 · 2 answers · asked by MATW 2 in Business & Finance ➔ Renting & Real Estate
Your closing costs should be no more than 1% of the project. If the mortgage company presents you with anything more than that question them.
Any changes you make to the home during construction could cost you alot more with change orders. So try not to make any changes to the design of the home once it begins. The changes you make to your home will vary in cost.
With this being your first home, there are multiple bonuses available to you. For example, you would qualify for a FHA loan. This is typically a loan where you only have to put down 5% of the value of the home. You may also qualify for some money for the closing costs.
Talk to your mortgage lender and ask them about options for first time home buyers. They should have the information you need.
2007-02-23 11:52:12 · answer #1 · answered by Michael H 3 · 0⤊ 0⤋
10% is normal, 20% max!
2007-02-19 12:06:36 · answer #2 · answered by love_2b_curious 6 · 0⤊ 0⤋