Other Frequently Asked Questions
Is it currently a good time to build a new home?
Build a New Home and Skip The Heartache of Used Homes Bidding Wars
You’ve probably heard people say that the housing market is hot right now, and there is not a lot of existing homes available. Lots of people are looking to buy a home right now and that means it’s a seller’s market. But what does that mean for homebuyers? Unfortunately, it often means competing with other buyers who might be putting down offers far more tempting than yours. It’s hard to compete in a market like this, which just adds to the stress of buying a home.
There is, however, another option. And no, we don’t mean just waiting until the market cools down. We’re talking about buying a newly constructed home. There are so many pros to working with a builder, and that’s why we put this list together! Here are a few of the reasons you should consider building a new home over buying a home.
1. Less Heartbreak, More Celebrating
Imagine this: You find a dream home on the market. It’s got that open front porch you’ve always wanted, more than enough bedrooms, and well appointed finishes. You put an offer in and hold your breath. Before 24 hours are up, the sellers have twenty offers higher than your bid. You’ve lost another home.
Yeah, that sounds pretty devastating. In today’s market, you may go through that heartbreak half a dozen times (or more, if we’re being honest). On the other hand, opting to build a home means there’s no competition. Nobody’s going to swoop in at the last minute with an insane bid and snatch your perfect home away. Instead, you can take your time to plan out a home that fits your family’s needs without the rush.
2. The Design Can Fit YOU (Instead of the Other Way Around)
Buying a home is all about making compromises. The houses with spacious yards might have cramped kitchens or not enough bedrooms. Or they might have too-low ceilings. You get the point. When you buy a used home, you must weigh your wants and find a home that fits as many as possible.
But when you build a new home? The world is basically your oyster. You can choose the layout to include that walk-in closet you’ve always dreamed of, the spacious master bathroom, and the ideal kitchen. You need to be mindful of your budget, but that’s about it. Design your home to fit your family.
3. Avoid Move-In Reno Projects
If you’ve bought a home in the past, you know about the inevitable move-in projects. Right after an exhausting week of packing and moving, you need to start painting or planning to swap out the outdated bathroom tile. With all the unpacking chaos, trips to the hardware store, and late nights, moving can feel like a never-ending blur. It takes a while to finally take a breath and enjoy the new space.
Say goodbye to all of that when you build a home. You will be able to choose all of that from the start: cabinet style, flooring, windows, wall colors, you name it. It’s a lot of work, sure, but it’s exciting to build your home from the ground up. And you’ll have a lot more fun imagining your gorgeous new countertops than if you were embarking on a home improvement project.
4. It’s a Balancing Act
It’s necessary for us to talk about the other side of building a home. Some of the common arguments against buying brand new are cost and time. First of all, it’s usually less expensive to build a house than to buy it in the long run, so let’s dispense that myth right now.
Second of all, yes. It takes longer to build a home than buying one. But the benefits of building a house from scratch designed to fit your family – and budget – is often enough to offset that time.
When the housing market is hot, like it is right now, don’t spend time and energy bidding against dozens of people. Instead, consider building your home. No competition, no surprises, no compromises. Just a brand-new dream home for you and your family.
Do you offer custom home financing and how does it work?
Working with one of our preferred lenders can expedite the process and make it easier for you. CRV Homes’ preferred lender(s), specializes in single close construction loans.
This section is a valuable resource for anyone planning to build a custom home. It provides information on the financing process, a helpful glossary and a timeline to help you plan your project. How you finance the construction of your new home is one of the most important things to consider. Our perferred lenders are leaders in home construction lending, specializing in Single Close Construction Loans. They are well known for our exceptional customer service, and they understand the needs of both the you as the home buyer and us as your builder. Our perferred lenders Single Close Construction Loan takes you from groundbreaking to move-in, in one easy process. If you decide to work with one of our lenders, you will be working with construction loan specialists who are able to answer all of our questions so that your home construction keeps moving smoothly with no surprises along the way.
We offier through our lenders a Single Close Loan designed to build a primary residence. Single Close means one loan – start to finish. You sign one set of loan documents that covers both the interim construction phase and the permanent loan. This eliminates the need for multiple loans to get into your new home. With a single loan, you can purchase the land for your home and complete the construction. When construction is complete, the loan converts to a permanent mortgage loan saving considerable time and money. The construction period is normally up to 12 months to allow time to build the new home and sell the existing home.
There are a number of costs that go into building a new home:
You may purchase the land you have under contract at closing with proceeds from the Single Close Loan, or you may have already purchased the land and have a loan to be paid off with proceeds from the Single Close Loan. Or, you may own the land free and clear.
Permit fees, engineering fees, architectural fees and other costs associated with building the home, but not directly part of the actual construction costs.
The tangible costs associated with the actual construction of the home. This includes materials and labor costs.
Sums included in the construction budget for items to be selected in the future, such as flooring, cabinetry.
A Contingency Account is recommended on all contracts to cover change orders or upgrades. Differences between budget allowances and actual costs are usually handled through change orders.
The total cost consists of all of the above.
MAXIMUM LOAN AMOUNT
You may borrow up to the maximum loan amount as figured from the lesser of the appraised value or the actual cost (lot plus construction costs).
The difference between the appraised land value and the loan to be paid off on the land, if any, will be the lot equity. The lot equity will be a credit toward the required down payment, if any.
The Single Close Loan process is very similar to a standard purchase or refinance transaction. But unlike a purchase transaction for an existing home, the Single Close Loan involves determining the value of a home that is not yet completed. To assist the appraiser and the lender in determining future value, information must be provided on the planned home, such as what materials will be used and the total cost to complete the project.
FINAL PLANS AND SPECIFICATIONS
These consist of a legible set of architectural drawings (building plans). They must include a floor plan showing all dimensions and outside elevations (drawings of the exterior). In addition, CRV Homes will provide a detailed description of the materials to be used in construction of the home; for example, wood shingle or lightweight tile roofing; brick or stucco exterior. This information will be provided to the appraiser who will determine value, subject to completion per plans and specifications.
This is the agreement between you and CRV Homes that details the planned construction project, the agreed upon cost and the construction term to complete the project. The final plans and specifications should be an attachment to the construction contract.
DETAILED LINE ITEM COST BREAKDOWN/DRAW SCHEDULE
This schedule is prepared by CRV Homes and includes all costs associated with the construction. The total will match the Construction Contract total. The Draw Schedule is used to advance funds to the builder as work is completed.
This form requires information that is supplied by CRV Homes and is used solely for the benefit of the lending company to determine eligibility for their program. Selection of the builder is the exclusive, independent decision of the borrower but CRV Homes is already registered as a qualified builder with many lenders.
Draw disbursements or progress payments are made on a work-completed basis and occur over a period of time as the work progresses. CRV Homes will submit draw requests directly to the lender, itemizing the work completed and the amount requested for payment. The percentage of work completed is determined by an independent third-party inspection service. CRV Homes will designate a construction bank account at a financial institution and disbursements will be wired directly to that account after receipt of the inspection report. As a convenience to you, a copy of the disbursement statement may be sent to you either via email or regular mail each time CRV Homes makes a draw. This statement indicates the amount of funds disbursed and funds remaining on the project.
The initial disbursement at closing includes the payoff of the lot (if applicable) less your down payment (Initial Cash Deposit to CRV Homes). Also, a startup draw may be disbursed immediately after closing is finalized to get the construction process moving forward.
The cost for special order items may be funded up to 50% of the line item on the draw schedule, when accompanied by a request from CRV Homes together with supporting invoices.
The final draw to the CRV Homes will be paid upon completion of construction and receipt by the lender of a final appraisal inspection, a “clear endorsement” from the title company, a final survey if required, homeowner’s insurance policy, and any other documentation as may be required for your particular loan.
CONSTRUCTION TIME LINE
1. SITE SELECTION
If you have not already selected and purchased your lot, location is one of the most important factors to consider. There are realtors who specialize in finished lots as well as developers who sell finished lots. Many builders also have lots in inventory. A current survey of the property indicating all easements and rights of way will be required for closing.
2. PLANNING MEETING WITH CRV HOMES AND ARCHITECT
Building the custom home begins several months before you break ground. You may start by meeting with CRV Homes or your own architect. CRV Homes has architects on staff at no addeitional charge to you. Keep in mind that each plays an integral role in the process and will work together to help make your vision a reality.
3. MEET WITH THE LENDER
It’s never too early to meet with your construction lender. A construction lending specialist can help in planning for your future investment. If you need assistance with this - please let us know.
4. LOAN CLOSING
You must have an adequate down payment or equity at the time of closing. Equity is defined as cash paid toward the lot or construction costs, both hard and soft.
5. UP TO 12 MONTH CONSTRUCTION PHASE
Enjoy a construction phase of up to 12 months with interest-only payments or fully deferred payments while CRV Homes completes your new home. You will be charged interest only on the funds disbursed. The interest-only construction phase of your financing may continue past your home’s completion and your move-in, up to 12 months from loan closing for most loans.
6. MOVE IN!
Once construction is complete you may move in. If your home is completed early you may opt to continue making interest-only payments through the end of the construction period or you may modify your loan to begin making permanent loan payments for most loan programs.
If you currently own a home, you do not have to sell it before you start a new one. Close on the Single Close Loan and have up to 12 months to sell or lease your current home prior to loan modification. No need to move twice!
The Single Close Loans normally allows for modification options, which is available upon completion of construction of your home, or up to 12 months after loan closing.
What expectations should I have for our Builder/Client relationship?
What are my custom design options?
How do I know the price you say is what I will pay & what about 'hidden costs"?
What should I look for if I am buying a property to build on?
Why do you price your homes per square foot?
What is the overall process?
What is included in my price quote?
Can you summarize the land prep, financing, and construction process?
Will you build on slab or pier and beam foundations?
Can you build a carport instead of a 2-car garage and what is the price difference?
If I don't have public sewer, how far does my home have to be from the septic system?
What does my down payment go toward?
What is One-Time-Close and how is it different from a construction loan?
What additional precautions does CRV take for a home built in a hurricane-prone area?
How often does a CRV home appraise at or above the price of construction?
Do you build terraces and/or balconies?
Do I need an appointment to visit your design center?
Are all of the CRV model homes built with base options or do some have upgrades built into them?
How do we figure out the cost to build a floor plan if we want to make a few small changes to it?
What options do you offer for getting a pool installed with a home build?
Does CRV Homes offer ADA homes for the disabled?
What if I have a special or custom item that I want installed in our home (i.e., a safe, special mirror, clock, etc.)?
I would rather pay cash for my home instead of financing, how does that work?
How much is the discount if I pay cash?
What happens if I lose my job prior to closing?
Do you have a referral program for the general public or past customers?
Do you have a veteran's and/or first responders program?
What costs are involved with closing?
Is a water softener needed for a water well system?
Can you roll the land and home loan together?
How do I know if I should I build a house or buy an existing home?
Do I need to hire an architect or plan designer first?
Do you have an in-house design center?
Do you have a standard features list?
Should I get multiple proposals from different builders?
Who will be my main point of contact during construction?
Do we have to buy a lot to build on or will you?
If we've located a lot we desire, what does CRV Home suggest we do before we make an offer to ensure the lot is a good one?
What is the typical deposit to start a home build?
Will you build a home from architectural plans we already have?
Does CRV Homes have architects, designers, and engineers that will help us design a floor plan?
Do you offer things like extra crown molding or upgraded appliances if we want them?
Can we roll the cost of our upgrades into the home's price?
Can we pay our deposit or change orders over a period of time? Not all upfront?
Can I install any of my own items during construction to save us some money?
What makes CRV Homes stand out from other builders and why should we select CRV Homes as our builder?
What if I have a question not listed?
If you have a specific question that is not listed here, please reach out and we will make sure to address your question.
Our office & showroom is located in the River Oaks/Galleria area of Houston near Post Oak and San Felipe. Please come by and see us by appointment or reach out.
17 S. Briar Hollow Ln. Houston, TX 77027