| 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. |