20-30%

The down payment required on new home construction loans is typically 20-30% and they usually carry a higher interest rate. The buyer will pay only the interest on a construction loan, at a variable rate, while the home is being built.

Generally, there's no need to pay off your lot loan before securing a construction loan. The new construction loan will typically encompass paying off the existing lot loan, similar to a refinance process.

Barndominiums stand out for their cost-effectiveness, attributed to their distinctive design and construction methods. Utilizing metal for both the frame and exterior commonly leads to reduced material expenses compared to traditional wood-framed houses.

When moving into a new construction home, you can expect several key experiences and considerations:

Final Inspections: Before closing, you may conduct a final walkthrough with the builder to ensure that all agreed-upon features and finishes are in place and that any outstanding issues or defects are addressed.

Cleanliness: While the home should be clean upon completion, some dust and debris may remain from construction. You may want to plan for a thorough cleaning before moving in.

Warranty Information: Familiarize yourself with the warranty provided by the builder, which typically covers structural elements and major systems for a certain period. Understanding your warranty coverage can be crucial for addressing any issues that arise after move-in.

Landscaping: Landscaping may not be fully established, particularly if you move in during the offseason. Be prepared to invest time and effort into landscaping and gardening as the seasons progress.

Settling Period: New construction homes may undergo a settling period during the first year, during which minor cracks or adjustments may occur as the home adjusts to its environment. Keep an eye out for any issues and report them to the builder for resolution.

Homeowner's Association (HOA): If your new construction home is part of an HOA-governed community, familiarize yourself with the HOA rules, regulations, and fees. Understand what is expected of you as a homeowner and any restrictions on property modifications or exterior changes.

Utilities and Services: Ensure that all necessary utilities and services are set up before moving in, including electricity, water, gas, internet, and cable. Coordinate with utility providers and schedule installations or transfers as needed.

Personalization: Take advantage of the opportunity to personalize your new home with paint, decor, and furnishings to make it your own. Consider any upgrades or modifications you may want to undertake after move-in and plan accordingly.

By knowing what to expect when moving into a new construction home, you can better prepare for the transition and ensure a smooth and enjoyable experience.