Home Building Tips

  
Tips to Improve the Building Experience

1.  Establish open communication with the Builder from the start. Communication is essential in the home building process.

2.  Be prepared for settlement. Ask your lender for the HUD pamphlet "Settlement Costs." Lenders are required to provide loan applicants with this pamphlet within three business days of the loan application. Lenders also must provide a good faith estimate of your settlement costs within three business days of your application. These costs generally run between 3 and 6 percent of the price of the house.

3.  Ask a lot of questions and take notes during the walk-through scheduled just before you move in. Make sure you understand how all the appliances and amenities work in your new home.

4.  Don't overlook the exterior of your home. Landscaping is important to your home's curb appeal.

5.  Make a mental note about Private Mortgage Insurance. It is designed to protect the lender from losses if the buyer defaults on the mortgage. Lenders generally require it with a downpayment of less than 20 percent. Lenders often will allow buyers to drop PMI after 7 to 10 years. However, it is the buyer's responsibility to notify the lender in writing to request that the PMI be dropped. The insurance will not be automatically canceled.

6.  Once you're in your new home, make sure to take a home inventory. That way if disaster strikes, you'll be able to report exactly what you lost. You may want take a videotape walk-through of your new home and possessions.

7.  Part of owning a home is taking care of it. Start off on good foot and stock up on your home maintenance supplies — tools, lawn supplies, etc.

8.  Make sure all changes to the building contract are in writing and additional costs are determined.

9.  Have fun! It's a well-known fact that people who build a house feel a stronger emotional attachment to their homes...most likely because they had such an integral part in its design, planning and construction.