https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Thu, 14 May 2026 06:15:55 +0000 https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1902443 Wed, 15 Oct 2014 17:28:39 +0000 sunny 1902443@https://boards.hellobee.com/ <p>@wheres_c: Haha! Sorry!</p> <p>Let me try to explain some of the mortgage stuff.</p> <p>When you shop around, you ask mortgage brokers for Good Faith Estimates. This will be an itemized bill of the cost of the home, fees (e.g. appraisal, county recording fees), loan origination fee (e.g. how the mortgage broker makes their money), escrow amount (e.g. home insurance, property tax, etc.). All of that will boil down into your monthly payment of principal, interest + escrow. At this point, you want to compare the fees charged by different lenders/brokers. One may charge you 1% of the loan and another may charge you 1.125%. There will also be a line item there for "points". This part is kind of complicated, so I suggest you do some reading to understand it. <a href="http://www.investopedia.com/articles/pf/06/payingforpoints.asp" rel="nofollow">http://www.investopedia.com/articles/pf/06/payingforpoints.asp</a></p> <p>When you *apply* the a mortgage, the broker will buy something on your behalf called a "rate lock" which guarantees that in X days, when you close on the transaction, the mortgage rate will be what they promised you (think of it like an option, if you're familiar with those). The rate lock is time bound. Once the time expires, you can no longer obtain the mortgage at the rate previously agreed upon. If rates go up during this time, you're hosed because now you will have to pay a higher interest rate when you ultimately close. If rates go down during this time, it would be nice to have the option to "float down" the rate and relock at a new rate. </p> <p><a href="http://www.zillow.com/mortgage-rates/buying-a-home/when-to-lock-mortgage-rate/" rel="nofollow">http://www.zillow.com/mortgage-rates/buying-a-home/when-to-lock-mortgage-rate/</a></p> <p>Did that make more sense? </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1902367 Wed, 15 Oct 2014 15:49:21 +0000 TemperanceBrennan 1902367@https://boards.hellobee.com/ <p>You've got some really great advice so far. </p> <p>We built our home and were able to secure a pretty great deal because we took out a construction loan and then rolled it over into a traditional mortgage. </p> <p>We also worked with a small local company that was established and had a great track record. </p> <p>We had a realtor because we started looking at existing houses first and she found the builder. She also helped us throughout the process and did a lot of negotiating. We were able to pick every single thing out - lighting, appliances, fixtures, etc. I suppose it could be overwhelming, and you really have to keep costs in check, but I really liked being able to make the decisions with no surprises.</p> <p>Also, ask to do a walk through before electrical is done and mark where you want the outlets. Also, the more outlets, the better. :happy: </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1902344 Wed, 15 Oct 2014 15:33:16 +0000 hellobeeboston 1902344@https://boards.hellobee.com/ <p>@wheres_c: GFE=good faith estimate. </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1902334 Wed, 15 Oct 2014 15:27:14 +0000 wheres_c 1902334@https://boards.hellobee.com/ <p>Wow thanks everyone! So much info! I only understood about half of what @sunny said so looks like I need to research some more. </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901629 Wed, 15 Oct 2014 09:31:28 +0000 Mrs.KMM 1901629@https://boards.hellobee.com/ <p>I also bought a new construction home (after it was finished) so if you are building from scratch I can't help much. We used a realtor and she helped us through the whole process. Our friends who had recently bought recommended their mortgage broker and I think that made the mortgage process so much easier too (versus having to call all over the place ourselves).</p> <p>But I agree with the PP that the builder wouldn't budge on price at all. The only negotiations they would do was for "stuff". But they were willing to give us a ton! Wrought iron fence, stairs down from the deck, pouring a concrete patio, stainless steel fridge, faux-wood blinds and screens in every window, etc.</p> <p>Definitely get an inspection (but that goes for buying any house). </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901470 Wed, 15 Oct 2014 08:24:44 +0000 yoursilverlining 1901470@https://boards.hellobee.com/ <p>Are the homes already built/started or not? Your mortgage options might vary depending on whether or not you need a construction mortgage or can just get a conventional mortgage. Hire your own inspector, or use one suggested by the mortgage lender; I wouldn’t use one suggested by the builder because I want my inspector to be as impartial as possible. </p> <p>We bought a new construction home (after it was finished); but also looked into building from scratch. I personally would be wary using a company that only gives allowances rather than itemizing everything out for you, or only allows you to purchase block “upgrade” allowances, rather than shopping around. </p> <p>I would also highly recommend calling your state licensing board and/or public/consumer advocate and checking into any complaints the state licensing board or public advocate has received against your builder, or any lawsuits that they have been involved in. There are a lot of meh builders out there getting back on their feet now that the market is decent again; especially in tract housing developments where they are back to just slapping up homes.</p> <p>Don’t assume the home will include anything; ask about fixtures, appliances, etc. Also ask about specific brands/models for appliances. My in-laws just bought a new construction home in NC and the appliances were so crappy and the absolute worst/cheapest quality available that the oven didn’t even self-clean and had to be replaced within a year. Ask about specific models/brands for water heater/boiler/heating system, etc. You don’t want to be paying $$$$$ for the cheapest stuff out there. </p> <p>Insulation types (spray foam? Not?); what do they do for crawlspaces/attics/basement ceilings/etc.</p> <p>If you’ll have private water/sewer, I have other recommendations as well, but those wouldn’t be applicable if you’ll have public water/sewer. </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901442 Wed, 15 Oct 2014 08:06:52 +0000 Mrs. Pickle 1901442@https://boards.hellobee.com/ <p>You can use a Realtor when buying new construction. He or she can help you find the right builder and with the negotiations. The commission is paid by the builder. </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901382 Wed, 15 Oct 2014 07:23:15 +0000 hellobeeboston 1901382@https://boards.hellobee.com/ <p>@sunny: excellent advice!</p> <p>@wheres_c: not much else to add. But exciting! Congrats! </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901303 Tue, 14 Oct 2014 23:52:21 +0000 sunny 1901303@https://boards.hellobee.com/ <p>Sorry for the novel!!! :-)</p> <p>Oh one more thing about mortgages. Make sure you understand how long the rate lock is for and if there is a rate change provision or lock extension provision. My friend said she almost lost her financing (at the particular rate bc interest rates went up) because her builder was running behind and her rate lock was about to expire. </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901301 Tue, 14 Oct 2014 23:49:58 +0000 sunny 1901301@https://boards.hellobee.com/ <p>If you are trying to use a discount brokerage (eg. Redfin) be aware that sometimes the builders won't pay out the comission if you visit and have said you are unrepresented. So when I went to builder open houses, I just named an agent just so the guestbook info wasn't blank.</p> <p>I didn't buy new construction, but something friends have told me is that with new construction, they will not pretty much not budge on price. Negotiations will be about the upgrades the builder will do (eg. # of Recessed lighting cans, wiring, upgraded flooring, counters, fixtures) etc. This is because they want to keep the publicly recorded sale price high. </p> <p>As for mortgages, the advice a broker once gave to me was to shop for a mortgage like this:<br /> -block out 3-4 hrs<br /> -call a bunch of agents and request GFEs all at the same rate (you'll perhaps need to figure out in advance or with the 1st agent what a reasonable rate is)<br /> -compare costs between them</p> <p>He said that rates change frequently enough that you aren't getting a good picture of relative costs if you ask for rate quotes on different days. </p> <p>One thing he told me was that every rate is always available but there will either be a cost or a credit. Sometimes it doesn't make sense so they don't offer it. </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901298 Tue, 14 Oct 2014 23:43:09 +0000 Mrs.Someone 1901298@https://boards.hellobee.com/ <p>Never buy without an inspection! That's all I've got :happy: </p> https://boards.hellobee.com/topic/tips-on-buying-first-home-new-construction#post-1901296 Tue, 14 Oct 2014 23:37:16 +0000 wheres_c 1901296@https://boards.hellobee.com/ <p>We took a look at some new homes this week and it's super overwhelming.<br /> Any tips about builders? What to look for? Getting a mortgage?</p> <p>We looked at Ryland, Lennar, and a few others. </p>