If you’re considering purchasing a new construction home in Ocala, Florida, understanding how new build mortgages work is crucial for a smooth homebuying process. In this blog post, Ocala real estate expert Scott Coldwell explains the key aspects of new construction financing and what you need to know before starting your journey.
Key Takeaways
- New build mortgages have unique aspects related to the construction timeline
- Most builders require a deposit of 5-10% to secure your lot and home design
- You have the flexibility to shop for better mortgage rates closer to completion
- Expert guidance through the process is available at no cost to buyers
Understanding New Build Mortgage Basics
New construction mortgages in Ocala follow a different timeline than traditional home purchases. The process typically spans several months to allow for construction completion before finalizing your permanent mortgage.
“One of the biggest advantages of new construction financing is the flexibility it provides buyers during the building process,” explains real estate expert Scott Coldwell. “You often have time to improve your credit score, save for a larger down payment, or shop for better rates while your home is being built.”
The Pre-Construction Phase
Before construction begins, you’ll need to complete several important steps:
- Obtain mortgage pre-approval to understand your budget
- Select your lot and home design
- Pay the builder’s deposit (typically 5-10% of base price)
- Review and sign the builder’s purchase agreement
- Choose any structural upgrades that affect financing
During Construction
While your home is being built, which typically takes 12 to 24 months in Ocala, the builder handles all construction financing. This period gives you time to:
- Monitor construction progress
- Save additional funds for your down payment
- Maintain or improve your credit score
- Research mortgage options and lenders
- Plan for your closing costs
Finalizing Your Mortgage
About 60 days before completion, you’ll need to:
- Gather current financial documentation
- Choose your final mortgage lender
- Lock in your interest rate
- Arrange for homeowner’s insurance
- Schedule your final walk-through and closing
Why Choose Scott Coldwell for Your New Construction Purchase
When buying a new construction home in Ocala, Scott Coldwell’s expertise becomes invaluable. With more than 19 years in real estate and over 500 homes sold annually in North Central Florida, Scott and his team understand the intricacies of new construction financing.
Their expertise includes:
- Strong relationships with local builders and lenders
- Deep understanding of construction timelines and processes
- Experience negotiating builder contracts and protecting buyer interests
- Knowledge of local market conditions affecting appraisals
Best of all, when you work with Scott Coldwell on a new construction purchase, the builder typically pays his fee – meaning you get expert guidance throughout the process at no additional cost to you!
The team’s impressive track record includes:
- Selling homes 48% faster than other local realtors
- Maintaining relationships with over 8,276 pre-qualified buyers
- Hundreds of verified 5-star reviews
- Multiple buyer guarantees including their exclusive “Love Your New Home or We’ll Buy it Back” guarantee
Start Your New Construction Journey Today
Don’t navigate the complex process of new construction financing alone. Contact Scott Coldwell at 352-290-3512 to benefit from his team’s extensive experience and builder relationships. Their expertise ensures you’ll get the best possible terms on both your builder agreement and permanent mortgage.
Frequently Asked Question
Yes, you typically have the right to choose your own lender, even if the builder offers preferred lender incentives. In fact, Scott Coldwell recommends comparing rates and terms from multiple lenders within 60-90 days of completion to ensure you’re getting the best possible financing. This is another way having expert representation helps protect your interests throughout the new construction process.
