Do
I need to buy a lot before talking to Porter Builders
? |
No! We
can assist you in finding the ideal location for
your home. In most circumstances, we will purchase
the lot in your behalf and contract to you for the lot
and home. This may decrease the amount of up front
money you need and simplify the process. |
|
Do
I need to find a floor plan, or hire an architect
? |
No! The
cost of design and plans are included in the home
price. Porter Builders has a full time draftsman
to assist you with the design and to draft your
plans. This allows you to look at several options without
running up huge drafting fees. |
|
Should
I consult a mortgage company prior to meeting with
Porter Builders ? |
This
is up to you. Porter Builders will be more than
happy to assist you with the loan process. We can
pull an "in house" credit report and
check it for errors. We will also compute your
debt ratios to determine the loan amount that you qualify
for. We also have the standard applications
that most lenders use in the office, so when you go for
application, you are completely prepared. Also,
we will be happy to go to the loan interview with
you to answer any questions about the builders side of
the transaction. |
|
How
much will I have to put down on a new home
? |
Your
down payment, in most cases, is as little as 3-5
% of the sale price. The builder can pay as much
as 3 % of the sales price toward your closing costs. |
|
How
long does it take to build a home ? |
Depending
on the plan and location, allow at least four months
to build your home. Why so many ? The biggest
factor is mother nature. If rain has delayed
your building project, chances are that the sub-contractors
working on your building project will be working on other
sites as well. Once a delay happens, it seems
to have a domino effect on other parts of the project
as well. |
|
What
selections can we make to individualize our new home
? |
In
most cases, you will select the brick, paint colors
(inside and out), appliances, flooring materials and
colors, counter tops, electrical fixtures, cabinet and
door hardware, and wallpaper. There are many other
things you can work with Porter Builders on to customize
your home, such as, special wood trim, glass block windows,
plumbing fixtures, etc. You will be given allowances
to spend on these items and will make your selection
(s) from a long list of approved vendors and suppliers. |
|
Can
we do some of the work ourselves ? |
In
some cases, we allow the buyers to perform certain
aspects of the project that they request. However,
it should be understood that the construction process
is scheduled on a tight time line to avoid the
high interest costs of a construction loan. If
a buyer does do some of their own work, it has
to be done in a timely manner. After considering
the time constraints and the value of having work done
by professionals, most people elect not to go the 'do-it-yourself'
route. |
|
We
already own our lot, but it's not paid in full
- can we still build ? |
Not
a problem ! Porter Builders will pay your lot off
and contract back to you for the completed home and lot. In
most cases, the down payment and principal that
you have paid toward your lot can be applied to the down
payment on your new home. |
|
What
is a Conventional Fixed Rate Mortgage ? |
It
is a mortgage where the monthly payment, the interest
rate, and the term of the loan is fixed for 15 or 30
years. Interest rates are usually lower on
a 15 year mortgage. |
|
What
is a Graduated Payment Mortgage ? |
Initial
monthly payments are low and increase over a 5 - 10 year
period. Good if you expect your income to increase
over a period of years. Term of loan is fixed for
15 - 30 years. Interest rate can be fixed or
adjusted. |
|
What
is a Buydown ? |
Most
graduated payments are buydowns, in which the
builder, seller or buyer pays up front to lower the initial
3 - 5 years' payments and/or interest rate. Buyer
qualifies at first year lower interest which is usually
3 % below the rate of the loan. Loan interest rate
is fixed, but buydown money makes up the difference
between, for instance, 13 % fixed loan and a first
year payment figure based on a 10% rate loan. |
|
What
is a Growing Equity Mortgage ? |
Monthly
payments are usually fixed for a 25 - 30 year term, but
increase 3 - 7 % a year after the third year. Additional
payment goes toward principal. Loan is paid off
in 12 - 18 years. |
|
What
is an FHA Insured Mortgage ? |
These
mortgages require minimum down payments, no pre-payment
penalties, full assumption privileges, easier qualification
and various financing packages to mold the loan
to the buyer. |
|
What
is a VA Loan ? |
Veterans
can qualify for a Veterans Administration loan. Loan
features low or no down payments, assumability and no
pre-payment penalties. |
|
What
is an Adjustable Rate Mortgage Loan (ARM) ? |
Loan
is characterized by interest rates that can be adjusted
up or down according to an index of a lender's cost of
funds. Low initial rates and payments are
main selling features of the loan. Some adjustable
rate loans are helpful for first-time buyers, but buyer
needs to know the questions to ask. |
|
What
is a Balloon ? |
Financing
with below-market interest rates, and monthly payments
calculated as though the loan will be paid off over a
25 - 30 year term. The balloon requires that
the entire balance be paid off in full after 3 - 5 years. |
|
Can
I customize my floor plan ? |
If
you plan to customize a floor plan, choose a plan
that you can enlarge rather than one you
wish to reduce. Reducing the square footage can
affect the minimum clearance standards for halls, bathrooms
and kitchens, and can compromise the balance of the exterior
design. Moving walls can adversely effect windows,
columns, doors and the roof lines. |
|
Can
I combine floor plans ? |
We
are quite flexible and will work with you to customize
your dream home. If you choose a floor plan, but
prefer the front of a different plan, we can incorporate
the two. We can change the front elevations
on any of our homes and reverse our plans to suit your
needs. |
|
Are
there any legal considerations I need
to make ? |
You
should always check for the legal setbacks and easements
on your property. This will allow you to determine
the maximum width and depth of your home. Before
ordering your plans we recommend that you check your
local building codes. You may need to modify your
plans to comply with local building regulations, snow
loads, seismic zones, energy codes, etc... |
|
How
many sets of plans do I need to order ? |
You
should order 8 to 10 sets of plans for constructing
your home. Why so many ? One copy for you
to keep, and at least one copy for your lender. Some
areas of development require an architectural review
of your plan before you construct. A builder needs
as many copies as you can give him/her. Each
sub-contractor needs a working copy of the plan to prepare
a bid and complete the job. Sometimes the sub-contractor
does not return the copy of the plan when he finishes
the job. Even when you begin picking out
the floor coverings you need the measurements from the
plan. |
