If I buy a house in a new sub division to be constructed. Do I have to make payments on the house while it is being constructed. What if I don't want them to start building the house for a few more months? Can I still reserve my house?
2007-12-13 05:34:20 · 3 answers · asked by I love sushi 4 in Business & Finance ➔ Renting & Real Estate
The builder will have you do financing in one of two ways.
If it's a small builder or a custom job, you will need to get a construction loan and the pay the builder in draws as set forth in the contract. The bank will give you a line of credit and you will start paying interest payments on the amount of money you have used to date.
However, if you are buying a home in a subdivision, you will apply for a regular mortgage and payments DO NOT START until the home is 100% complete and you settle.
In regards to having the builder not start the home, that is up to the builder. However, I wouldn't worry about start date, I would worry about end dates. If you want the settlement to happen later, this is what you want discuss with the builder. Let him start the home early and just not settle until later.
2007-12-13 06:05:57 · answer #1 · answered by Anonymous · 2⤊ 0⤋
That will depend entirely on the arrangements you make with the builder/developer. If you are doing a custom build job, the builder will most probably want construction payments as he progresses.
Check with the builder involved.
2007-12-13 05:37:58 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
It is all set out in the contract. Read the contract and/or bring it to an attorney if there's anything you don't understand.
2007-12-13 05:45:49 · answer #3 · answered by Anonymous · 1⤊ 0⤋