Here’s what you need to know about new construction financing.
For this latest installment of my new construction series, I’ll focus on the financing aspect of buying new construction. Joining me is local banker Eduardo Rodriguez to discuss the various issues you need to be aware of regarding new construction loans.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure:
0:34—Financing for tract builders
3:03—Answering FAQs about construction loans for smaller and custom builders
5:57—Examples of interest payments for a $400,000 build and a $100,000 lot
7:56—What’s the difference between a one-step and two-step close?
10:17—How does an increase in material (e.g., lumber) prices affect buyers?
11:46—Is there a standard down payment for a two-step close?
14:01—Wrapping things up
As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help. You can also contact Eduardo G. Rodriguez at 919-249-2270 or by emailing him at eduardo.rodriguez@fidelitybanknc.com.
