Do you already own a lot in the Charleston real estate market, or have you found the perfect plot of land to build your new home? Have you looked at John Weiland’s Mount Pleasant new homes and loved them, but the lots were not private enough or not large enough? If you said yes to any of these questions, then I may have a solution: build your perfect home on your perfect lot.
Several builders in the Charleston real estate market will build a custom home on a lot of your choosing. I have personally found that larger builders tend to be able to quote better prices due to the fact that they have access to large suppliers, and the builder typically buys the materials to build the home in bulk. Small builders may be just as competent, but they usually have to charge a bit more for the materials because the smaller builders cannot purchase large amounts of each product. David Weekley Homes, John Weiland Homes, and many other custom builders build Charleston new construction on your lot. In other words, they are not tied solely to the communities they represent.
Most builders require that you obtain financing if you are not paying cash for your lot. They want you to purchase your lot and close on your lot prior to closing on the construction loan(s). Some banks will lend the new construction funds in a couple of different draws or more requiring a closing for each draw. Some banks will combine the lot and first draw into one closing and have a second closing for when the home is complete. It is not easy to obtain a new construction loan these days, as not many banks even will offer this type of loan. You may even end up closing with two different banks. (We can help you find financing.)
Using the builder’s preferred financial institution is usually the best plan of action because the builder has normally done some research on the best lot and Charleston new construction homes packages available for the best rates in our market. Local banks usually know the area well enough to see a catastrophic event before it occurs. For example, if your bank is located in a mountain community where flood insurance is not a regular occurrence, your loan officer may not think to ask how much the flood insurance will be nor will he/she think to order a flood declaration page from your insurance company. The builder’s representative or your Charleston real estate agent will catch this mistake before you sign the closing documents, more than likely, but you will end up having a delayed closing. Do yourself a favor and shop locally.
Build on your lot programs are a great solution for buyers wanting their dream home who cannot find one already existing (meaning pre-owned). Although financing can be more difficult, getting a mortgage locally and interviewing the builder’s preferred bank will save you hardship in the building process.