Ok, I got questions.. new construction what do I ask?

So I've got an appt on Thursday to see the builder ppl. We discussed my credit rating briefly and my mortgage goals.

Here's a few questions I have to ask you guys

I've looked at their floor plans and I like about 3, do they charge more for things like rugs, appliances, etc? What does that $$ mean?

They say we can look through plans and pricing then if I like something I can give them $500 for loan approval. If I'm approved I wont get that money back.

Should I run my credit first on my own? I heard you can use myfico.com for a credit score without it affecting your credit.

What questions to you ask a builder when looking at a home?

This is going to be new construction, ground up.

Man, for a new home buyer I think I am biting off WAY too much to chew on!

Message edited 1/5/2010 4:35:18 PM.

Re: Ok, I got questions.. new construction what do I ask?

I don't know about borrowing money from the builder, but I do know that you don't have to. Find out what they are offering, then check out a few banks and credit unions. I bet you can find a better deal from someone besides the builder....

You should ask for an itemized cost sheet. That will list the cost for carpeting, appliances, painting, etc. Without an itemized list, you won't really know what's included. Also, find out if you can pick your own appliances, purchase your own appliances and have them install them, etc.
The same goes for other materials. If they say it's $5000 for the countertop, ask if you get to pick out the material (granite, tile, laminate, quartz, etc) and the colors.

Will you be able to make minor changes to the existing plans? I know that major changes will cost money, but can you add an extra door somewhere, make the doors wider (you may want wheelchair accessible doors in some areas, or wider doors to make moving furniture easier).

Re: Ok, I got questions.. new construction what do I ask?

With new home building you usually can change anything just remember anything you do change comes with a price tag. You can go out and buy things on your own and they will give you a credit for that line item...

Not getting the $500 back.....I assume it goes towards a deposit, so make sure you are ready to move on if you have them go for the loan approval.

Also, when you go and look at the plans know that everything that is included is usually the cheap stuff like cabinets and that kind of stuff.....they want you to upgrade cause thats where they make $$$$

Re: Ok, I got questions.. new construction what do I ask?

I dont have any advice on what to ask the builder but I just wanted to say that you're right that your running your credit does NOT affect your score. You should go ahead and do that so you know where you're at.

You can tell the builder/banks/brokers your scores and have them estimate the cost of your loan and financing based on your information. Do this to shop around and only give permission for them to run it when you've made your decision.

In my experience, each time someone else runs your score, your score will decrease about 10 points.

Re: Ok, I got questions.. new construction what do I ask?

Re: Ok, I got questions.. new construction what do I ask?

We did this, and to be honest - I sort of regret building now...

While I love my house, there are a LOT of hidden expenses in building such as:

- landscaping (including grass): my builder provided NOTHING so we were left with dirt. Ugh! Definitely something to ask about.
- Deck / patio not included
- No window treatments anywhere in the house (this really added up!)!
- Certain things were very pricey to upgrade. I spent about $10k upgrading my kitchen cabinets (cherry, glaze, molding, extended their height, added an island)... not sure when all was said and done if this was worth it
- Some upgrades HAD to be done through my builder (ie, we paid an arm and a leg for wood floors to be installed throughout the house. If we had used an outside vendor, it would've been much cheaper). Definitely ask if you can use outside vendors or at least price compare.
- Most appliances that are included are VERY basic. We took a credit for them instead and bought our own. I would ask them specifically what brand and model they use and if you could take a credit if you wanted to.

I would say the $500 is for a deposit to hold the "lot" that you like for your house. We had the same thing and it went toward our downpayment. If we decided not to go through with the deal we lost it.

Hope that helps!!!

Re: Ok, I got questions.. new construction what do I ask?

fantastic advice.. i think i may print this and bring it with me!

Ran our credit... its actually gotten better since the last I looked. I knew we were over 600 but assumed only barely like 620. That's what I told her and she said it would qualify us for 5.5%

Reality is much better..we're both over 700 on one report and just under on the other. oh thank god the last year's kick butt discipline has paid off.

So I am coming with those numbers to the meeting tomorrow!