So, how long.... (mortgage broker, credit, loans)

[apr910]

does it take to build a new home in a KB, Shea or other such community?

We are actually planning on buying a resale, not a new home but I've been wondering.

I've looked at a few websites and some say that certain homes are "under construction" while others say "ready to build". Does anyone know the difference and how long does it take to get to the "move in" stage from this point?

I'm sure it depends on how big the house, the builder, etc but I'm looking for a general time frame. Is it 1 year, 2 years, 3 months? etc.

Thanks in advance!

[MotleyCrew]

Our Shea home in Vistancia took 8 months. Rosewood Homes last month quoted 9 months. You might want to call the different sales offices to check on their schedule as the building boom is over and they may be a little quicker now.

[apr910]

Originally Posted by Jill Warner

Our Shea home in Vistancia took 8 months. Rosewood Homes last month quoted 9 months. You might want to call the different sales offices to check on their schedule as the building boom is over and they may be a little quicker now.

Interesting, thanks!

How does it work in terms of mortgage and all that. Do you pay while building is going on? Or when it's finished? (sorry about the ignorance)

[sablebaby]

You start paying when you move in! The very very tricky thing about financing a new build is that your lender does not want to see any big purchases (usually over $100) on any credit cards, nothing can be done with your credit in the meantime. Sometimes people go crazy and buy all new furniture before actually getting the house and the bank goes nuts! So for the 6-9 months of home building you have to be careful.

[MotleyCrew]

Watch out for the "designer loans." Not sure they are even offering the interest only loans anymore. Good luck.

[Master Shake]

Originally Posted by apr910

does it take to build a new home in a KB, Shea or other such community?

We are actually planning on buying a resale, not a new home but I've been wondering.

I've looked at a few websites and some say that certain homes are "under construction" while others say "ready to build". Does anyone know the difference and how long does it take to get to the "move in" stage from this point?

I'm sure it depends on how big the house, the builder, etc but I'm looking for a general time frame. Is it 1 year, 2 years, 3 months? etc.

Thanks in advance!

Normally, it takes 5-6 months to build a new house. This timeframe is adjusted based on the builder's backlog (if any). Under construction is just that -- it is a house currently being built. Ready for move-in means the house is complete and available (aka: spec home). Sometimes you can choose the interior colors/designs, sometimes they are already done.

Originally Posted by apr910

How does it work in terms of mortgage and all that. Do you pay while building is going on? Or when it's finished? (sorry about the ignorance)

You generally have to leave a small deposit (few thousand dollars) to contract for a new home. This money is then credited towards the total purchase price when the house is ready. You do not have to get a loan or make any other payments until the house is done.

As a side note, be VERY AWARE of any so called "preferred lenders" the builder will try to steer you into. Preferred lenders usually means there is a pre-negotiated deal between the builder and a mortgage broker (aka: kickback), which is added to your loan terms. ALWAYS shop around, and do not deal with a builder who says you cannot use another lender.

[apr910]

All very good information. Thank you!