Buying a new home is typically the largest and most anticipated financial investment someone will ever make. And the process of finding your ideal house might be frightening, but it can also be thrilling because there are so many variables.
Buying a property comes with a slew of expenses, such as the deposit, closing costs, and mortgage. Purchasing a home that is under construction can sometimes make matters more difficult, particularly if you require additional financing or must give the builder a deposit.
It’s crucial to know what you’re getting yourself into before purchasing a home still under construction. For more information on the down payment, when the payment is due, and related topics, continue reading.
Table of Contents
How Much Do Most Builders Require as a Down Payment?
When Do You Pay for a New Construction Home
What Is the Average Closing Time for a New Construction Home?
Purchase the Home of Your Dreams at Rivington
Most builders request 20% of the total home price as a deposit, but this may vary depending on the builder’s policy. The deposit is generally due within 180 days after signing the purchase agreement.
If you’re unable to provide the entire amount upfront, some builders might be willing to work with you to create a payment plan. However, this isn’t always the case, so it’s essential that you’re aware of the builder’s policy before signing anything.
Keep in mind that the deposit is non-refundable, even if the construction of your home is delayed or canceled. Make sure you’re comfortable with this arrangement before moving forward.
When you sign the purchase agreement for a new home, you don’t have to start paying for it right away. Keep in mind that the typical time it takes to build a house is between 12 and 36 months, giving you plenty of time to put money aside.
After the mortgage is set up and the purchase is closed, you will begin making payments on a new construction home. Mortgage payments on a home that is still under construction do not start until after the closing and delivery of the property.
So, to answer, you pay for a new construction home after the closing and mortgage are set up, which is typically several months after you sign the purchase agreement.
The typical closing period for a home is between 30 and 45 days. The specific time to close varies depending on loan type and the state of the property market, but the difference is minor.
If you can close on a home sale in 30 days, it likely means there were few hiccups along the way regarding credit checks, home inspections, and the like. Closings can go more smoothly, save time and money, and reduce stress if all parties involved are well-organized and in constant contact with one another and the lender.
While the closing procedure as a whole may take a month or more, the actual closing itself often only takes 1–2 hours. In most cases, this is all the time required to finalize the acquisition of a home and receive the necessary certifications.
Building a new home can be a long and complicated process, but it’s also an excellent way to get the property you’ve always wanted.
If you’re considering purchasing a home still under construction, make sure you understand all the ins and outs before signing anything. It’s essential to know how much money you’ll need upfront, when you’ll start making mortgage payments, and how long the entire process might take.
The ideal home in Debary, Florida, can be found at Rivington. There is something for everyone in our community of elegant townhouses and brand-new homes. Feel free to call us anytime with your questions or to arrange a visit. We can’t wait to welcome you home!