closing cost and time of the year on a new construction home (2015)

[kaykaygc]

I should say this is one of the best forums i have ever participated in..very quick and honest answers to questions.

I have a question on a new home construction closing time. we are first time home buyers debating the advantages of closing on a new const. home in Dec 2014 vs Feb 2015 vs Apr 2015.
can anyone help me understand if there is a big financial incentive(by taxes or other means)in going with one time frame as opposed to the other?

thanks

GC

[cheryjohns]

If you have ownership as of 12/31/14 - you can claim the homestead exemption on property taxes for 2015, which ranges from an 8 - 20% cut (depends what county, city, MUD, school district, etc.). If you close after 12/31 - you can't claim until the following year.

Does that mean you should close by then? Not necessarily. Builders will sometimes give the best incentives for contracting near the end of the year. Depends on many factors.

Closing costs vary, depending on lender. Sometimes the best way to go is the builder's lender - sometimes not. Depends on incentives they give for using their lender AND how the interest rate and charges stack up against another lender. You have to look at the whole picture. There is no in-stone answer because of the various builders, their incentives, the different lenders, etc.

[predatorprey]

You're not saving or spending a huge chunk of money more either scenario. What fits your family and situation the best tends to be the biggest factor.

[georgemichael]

I would say there isn't a huge difference in the Dec.14 vs the April15 because of what cheryjohns said. however Feb.15 you won't get the homestead exemption and you'll practically pay the whole year worth of taxes.

also, I'd shop around on lenders and at least get some to compare to the builders lender before making a decision. that's going to make the biggest difference in savings in the long term if you plan to live in the house for a good while. otherwise that time frame is not very large and dependent on incentives as cheryjohns also said. ok, ok, I think I just repeated things. doh!

[chris_ut]

The builders lender will usually try to ********* so its best to have a couple quotes in your pocket before you talk to them the same way you wouldn't walk into a car dealership and just use the dealer's financing with nothing to compare it to.