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Regular Contributor
JonRun
Posts: 149
Registered: ‎04-29-2012
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Re: Anyone else buying a New Construction Home? Stories....

I've purchased a home before but not new construction. My wife and I are looking to build later this year. I have a couple questions. When do you close on the home? Do you get pre-approval up front then close when it's done? Would you get a better interest rate if your credit score went up between pre-approval and closing? Thanks for any info.
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thankfulheart
Posts: 619
Registered: ‎09-26-2011
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Re: Anyone else buying a New Construction Home? Stories....

In my experience so far, I've looked at both USDA Guaranteed and a Construction-Perm (single closing) loan.  As of now, the CP interest rates are more than I'm comfortable with, so I'm going with the standard USDA. From what I understand, I'll get a pre-approval, go through the process, and close at the end of construction.  I'm having to put down $5K with the builder in case disaster happens and something falls through at the end.  I was told that the credit is pulled at app and the "picture is set" (I was asking if I could improve my DTI over that time period by paying off a largish debt that I can't pay now b/c I've got the $5k tied up).  It is good for 90 days, so no improvement in terms in the interim.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

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faith4ahome
Posts: 1
Registered: ‎05-04-2012
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Re: Anyone else buying a New Construction Home? Stories....

Hello.I'm new to the board but been lurking for a while. So glad this thread was opened. I've wanted to discuss my new build as well as see if anyone has any stories to share. We got pre-approved about three weeks and signed a contract for a new build last week. At this point its just a waiting game. We have an estimate closing date end of October-that is if completed in time. Might be even earlier. My question is does anyone know when your LO submits your application for approval? I keep thinking its done after the house is complicated but I'm still very new to this and don't have much information at this point. Any input is of course very welcome and Good luck to everyone building!

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Chinadoll
Posts: 77
Registered: ‎06-08-2010
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Re: Anyone else buying a New Construction Home? Stories....


faith4ahome wrote:

Hello.I'm new to the board but been lurking for a while. So glad this thread was opened. I've wanted to discuss my new build as well as see if anyone has any stories to share. We got pre-approved about three weeks and signed a contract for a new build last week. At this point its just a waiting game. We have an estimate closing date end of October-that is if completed in time. Might be even earlier. My question is does anyone know when your LO submits your application for approval? I keep thinking its done after the house is complicated but I'm still very new to this and don't have much information at this point. Any input is of course very welcome and Good luck to everyone building!


My LO submitted my application end of February; but that is because we thought my home would be complete by end of March. Usually they do it about a month or so out from completion...from what i was told. But; seeing as though I am way past my proposed completion date my LO re- locked my rate and my application is complete with all conditions met and approved. Once my house is complete my LO will need updated bank statements, paystubs. From my experience alone I would wait closer to your home completion date that way you don't have to extend any forms or your rate lock which is so important. Luckily I have a Good LO and working with a good bank. Good Luck!!

Starting Score: TU 654 EQ 599
Current Score: TU 682 EQ 661 EX 688
Goal Score: 750


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ChangiBear
Posts: 60
Registered: ‎03-18-2012
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Re: Anyone else buying a New Construction Home? Stories....

I am about to start putting down a down payment to build on a new construction here in Orlando with Toll Brothers, hopefully, this coming week.  They require 5% down of the base price plus 20% down of upgrades.  With new constructions, I didn't know that they required an upfront downpayment, so they are holding my lot and allowing me three months to pay it.  They said that they will most likely wait until then to start building, but if they are comfortable with my ontime payments, they will go ahead and start building a little sooner (before I finish paying off the downpayment).  The house should be finished in March (no earlier than that), but we are in no rush, so that time frame is great for us.  

Until then I am going to keep improving my credit, paying off cc debt, and am going to either refinance one of my car loans to get a lower payment or sell the car to decrease my dti.  I'm going with an fha, and the max in my area is 353,700; my lender allows 55% at the back end, which I need :-)  Can't wait for the process to begin.

 

Good luck to everyone!

Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)
New Contributor
CaliSunshine
Posts: 72
Registered: ‎10-10-2011
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Re: Anyone else buying a New Construction Home? Stories....

New Construction here too! My process has been long... We signed our purchase contract last May. After doing so, and our credit was pulled, I was lucky enough to find this board. I am so thankful for this board. I used the information and letters found here to clean up hubby and I credit. Over the past year, we have made payments toward downpayment and closing costs. Last week, my hubby told me that had a major feature wrong in the house. Once we brought it to the builders attention they agreed to correct it. A few other issues, but no major ones. Our closing has been set for June 20. I PRAY there are no issues. I have not heard when we will have our walk-through. This process has been bittersweet as I have undergone some serious losses and sacrifices.


Starting Score:
EXP 567 (6/8/11) EQ 610 (6/8/11) TU 646(6/8/11)

Current Score:
EXP 628 (10/19/11) EQ 652 (11/13/11) TU 693 (10/19/11)

Goal Score: ALL Above 700
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Anyone else buying a New Construction Home? Stories....

My wife and I tried to get a pre-approval for a new construction a month ago.  It was then I found out that there is a difference between a credit score and FICO score.  I was paying another website to monitor my credit score and it was at a 645 middle score so I thought we were good to go.  WRONG!! They pulled my FICO score and it was 583!!  You can imagine the letdown and embarassment I felt.  Anyways, my last credit/installment late was November of '11.  Therefore, we need to wait until at least then to reapply so we have 1 year of good payments.  I also had a 30 day mortgage late February of '11 so I wouldn't technically be able to close until then sine it would be 2 years since a mortgage late. 

 

Well, with the builder we are looking at, there is a 6-7 month buildout so we hope to be able to get a preapproval sooner than February of '13 seeing we will be on time with everything between now and then.  Does anyone have experience in getting a pre-approval before the 1 year/ 2 year lapse between lates?  We are looking for an FHA loan.

 

Thanks in advance for your help!!

 

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Regular Contributor
indecison
Posts: 226
Registered: ‎05-24-2012
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Re: Anyone else buying a New Construction Home? Stories....

We have a new construction home being built now. Started the process by signing the contract in mid February. They just poured the foundation yesterday and have started the framing today. We are a month behind on construction due to some mistakes early on with setting forms improperly. Hopefully this is the only mess up they make along the way..As it stands we are looking at late August Early September for a close. We are hoping for the August close due to having to be in an apartment at the moment. We listed our old house in April for sale and had a contract in 12 days. Not what we expected at all.

New Contributor
butterfly3303
Posts: 59
Registered: ‎10-22-2009
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Re: Anyone else buying a New Construction Home? Stories....

Congrats on your new build!  We just closed on ours on Tuesday.  While building a new home is a great experience it can also be a stressful one.  A couple of things to keep in mind:

 

1.  If possible, use a realtor!  They really come in handy when dealing with issues with your builder.  I unfortunately did not go this route and wish I had.  I had to manage everything the builder was doing on top of making sure our LO had all docs.  This was the stressful part.  Having to go back and forth with the builder because I kept catching mistakes they were making!  I wish I had someone else to advocate on my behalf so that I could really enjoy the process of buildin a new home.

 

2.  Stay on top of your builder and the construction of your home.  We hired a private inspectior for our pre-drywall inspection and final inspection.  Well worth the money!  

 

3.. Make sure they have a portable bathroom for workers on your construction site.  Our builder did not have one on our lot and workers were using our toilets without the water being turned on so we has standing urine on our toilets for days!  Neddless to say our toilets were replaced with new ones.  I would suggest asking your builder to not install you toilets until just before closing.  That is not to say that the workers won't use your bath tub!  Yes, I heard of workers doing # 1 and 2's in bath tubs!!!!

 

4.  If your builder will allow, install your own pre-wiring for surround sound.  We did this ourselves and saved $2000.00 plus from what the builder was charging!  

 

5.  If possible, go to your home as often as possible.  This way you can catch mistakes BEFORE it's too late to correct them.  Some builders don't like this, but hey, it's your home!

 

6.  ENJOY THE PROCESS!  I have pictures of every stage of construction!  I was luch=ky enough to be there during ground breaking, watching the foundation poured, etc.  We actually wrote all our names on random pieces of lumber before construction and prior to the walls going up we all tried to find the lumber with our names on it!  NO LUCK!  But we did all so write our names and dates on the lumber during construction before the walls went up and took picutres of that as well.  We also were able to have a blessing wriitten above our front door prior to the walls going up blessing everyone that entered our home.

 

Take lots of pictures and videos!  It's amazing to see all of the progress!

 

Good luck to everyone!


Starting Score: 540
Current Score: 704
Goal Score: 750


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Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012
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Re: Anyone else buying a New Construction Home? Stories....

I love this thread! Congrats to you all on your new home purchases. Butterfly, I love the writing nmes on lumber and blessing above the door ideas! Consider them borrowed! 

My hubby and I are going to be doing new construction when we purchase as well. We are trying to wait until my scores get over 600 (preferably 640) for preapproval. Ultimately, we would like to use USDA Guaranteed.

We are anxious to start the process,but reading this thread had helped. I didn't know builders have different down payment rules/requirements and I wasn't aware that we may have to pay a percentage of options either. I will have to ask these questions to my builder. Keep posting! I'm eagerly reading!

Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
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