Bill and I want your purchase of a new home in Sparta to be an exciting experience! We will try to make the process as easy as possible and believe the more you understand about each step in the process the more comfortable and at ease you will be.
Step 1: Financing
As much as I would like to tell you that the first step is picking out the home you want, that simply is not practical. Your first step must be to check on your financing. For basic information on financing options (FHA, Rural Development, VA, conventional, first time home buyer, construction) and on choosing which mortgage company/bank to use, check out this link : The 1-2-3 of Financing Your New Home In Sparta. Ask the lender of your choice for a preapproval letter which will show that the lender has indeed approved you. After finding out how much you are approved for and how much you feel comfortable with, you are ready to choose your home!
Step 2: Which house do I want?
Browse the “New Homes in Sparta” website for the following options:
- “Homes for Sale“ These are homes that have already been completed or are in the process of being built. Buying a home already completed is the easiest choice (less decisions, less stress, less money down, quickest to close.) Expect the design to be tastefully warm and sedate. You also have the option of choosing a home that is still in the building process. This option gives you the ability to give some input on some design options (posssibly choose the siding/shutter color, carpet/vinyl style or opting for hardwood, countertop design, and paint colors.) Prices generally range from $125,000 to $200,000
- “Homes We Have Built” If you are considering building a home from the ground up, either on one of our lots or on land you already own, feel free to browse the homes we have built for ideas and to give you a good picture of what we do.
- “Lots for Sale” You also can choose one of our lots and then choose a house plan from our selection and we will build you a home from the ground up. Please contact us for our house plans and we will be glad to meet with you to show them to you and assist you in your selection. We can also build on land you already own and can build whatever floor plan you have. Building a custom home gives you the largest amount of control in design choices – from the layout to the light fixtures. Prices have a greater range here as the options are greater. However, the basic range is $125,000 to $200,000.
(The required amount of money down is dependent on the price of the home, the length of time until closing, and the amount of flexibility given in design choices. Money is held by the seller and is non-refundable. At closing, the amount of money paid down is applied to the purchase price.)
Step 3: Signing the Contract
Once you decide which home you want and have your preapproval for financing, it is time to sign the contract. It is a simple contract between the buyer and the seller agreeing to the price of the home and other agreed upon terms. At the signing of the contract, the money down will be paid. This is a very simple step which ensures that the home will not be sold to another but will be yours alone. (If you are purchasing a home that has already been completed, continue to Step 4b.)
Step 4a: Build It!
The home you have chosen must be completed before closing. This step is when the hard but exciting work of building and completing your home takes place. You will be given design options on the house as has been agreed upon in the contract. The lender will also require paperwork as soon as the contract is completed from both you, as the buyer and us, as the sellers. We like to be very prompt in turning in all paperwork to the lender. This helps the financing process move along as quickly as possible. If all the paperwork is in place up front, then it usually takes around 3 weeks to close after the completion of the home.
Step 4b: The Lender’s Turn
If the home is already completed, then it is simply time to get the paperwork to the lender you have chosen. You, as the buyer, will be required to turn in certain information to the lender. We will be required to do the same. If you signed a contract on the home before it was completed, then hopefully you already turned in your paperwork which will save you time at this step. After the paperwork is in and after the home is completed, generally an appraisal is ordered. After the appraisal is completed, a packet of information will go to the bank’s/mortgage company’s underwriter. The title work will be ordered and after approval, a date for closing will be confirmed. This total part of the process generally takes around 30-45 days unless you were able to get your paperwork in while the home was being completed. In that case, it generally takes around 3 weeks after the completion of the home.
Step 5: Closing Day!
The closing will most likely be at a lawyer’s office, a title company’s office, or at a bank. It requires your signature on a lot of papers but in the end you receive the keys to your new home! Remember to bring your license or some other form of photo identification.
Step 6: Home Sweet Home
Move into your New Home in Sparta and enjoy!
Hopefully, this helps in understanding the basic process in buying a new home. If you have questions, please don’t hesitate to contact us!