The Basic Purchase Methods

If you have never bought a home before it may seem like a daunting task, filled with headaches.  In our opinion this should not be the case, and we will do everything in our power to make it an enjoyable, fulfilling, exciting, experience.  We will be honest with you, and do our best to help you understand clearly everything that happening.  We never want to give the impression that we are hiding something or sneaking something by our customers.
Buying a Finished Home from Clint Williams Construction

This is the most basic way to get a home.  We have already built the home, it is finished, move in ready, and you are ready to buy it.  Once both parties have agreed on a price and terms, we fill out and sign a "Contract to Purchase Real Estate", this is the document described above that puts the price and other conditions "in writing" in order to protect the interest of both parties.  Once the contract is signed, we take it to the lender (if the buyer is financing) and they get the process started.  When the lender is done, then it's time to "close" the deal.  The lender usually sends their paperwork to the title company, where all parties sit down at a table and go through the closing process.

Buying a Home Under Construction

This is almost the same as buying a finished home.  The main difference is that there will be a specification sheet attached to the contract, signed by both parties.  The spec. sheet spells out how the home will be finished from that point on.  Once the home is completed, and passes the final inspection; a certificate of occupancy is issued and the bank can start doing their thing.  Financing will be pre-approved for the contract amount, and the agreed upon deposit/down payment will be held at the bank or title company until the closing.

Having a Custom Home Built on our Lot

This is almost the same as buying a home under construction.  The main difference is that there has to be a set of plans/blueprints decided upon.  We have many plans for you to pick from, we can custom design a floor plan for you, or you can bring a plan of your own from another source (internet, plan book, architect, etc).  A plan must be picked out before a price can be decided on and the contract signed.  A page from a book, a printed off web page, etc. does not constitute a plan; a plan is a set of full sized construction approved, dimensioned pages.  If you don't use one of mine, you will most likely have to pay for the set of plans; if you don't have to pay, it's probably not a real set of plans.  Once the plan has been determined, we sign the contract and spec. sheet.  Again, the financing will be pre-approved for the contract amount, and the agreed upon deposit/down payment will be held at the bank or title company until the closing.
  The deposit amount will most likely be more substantial, the more you deviate from our plans and specs.

Having a Custom Home Built on Your Property

Since you already own the land, there will be no "Contract to Purchase Real Estate", there will just be a contract to build the home.  This will be a legal contract for us to build a home on your land.  There will be a plan, spec. sheet, and draw schedule agreed upon and attached to the contract.  The buyer's payment method, be it financing and/or cash position will need to be verified.  When construction has reached certain progress levels, a payment is due.  If bank financing is used, they will conduct an inspection to verify this, then release the money to the contractor (us), either directly, or more commonly, through the borrower (you).  When all the agreed upon work has been completed, and all the payments have been made, the contract is complete.  There are more details/issues involved in this type process that can better be explained and addressed in person.  The bottom line is that you should use a company/contractor that is licensed, financially stable, reputable, reliable, knowledgeable, honest, etc.; to avoid many potential problems.  We can provide references of customers who we have done this process with in the past, with no problems whatsoever.  We do not typically work under "cost plus" circumstances.

How It All Works



Some Basic Terminology and Processes

Financing

This is the process of borrowing money from a bank, mortgage company, individual, etc.  Most buyers will need to borrow the money to buy a home, and most will borrow it from a bank.  The first step is getting approved for a loan, this is the first thing most people should do, even before they start looking for homes.  This will tell you the maximum amount that the bank is willing to loan you, how big the down payment will need to be, and also may help determine how much you are comfortable spending.  Once you know how much you can/want to spend, then you can start seriously looking at homes and pick out the one that is best for you.  When an agreemant has been reached and the sale/purchase contract is signed the bank will start the loan process, this usually takes at least a few weeks.  The bank will start by having the home appraised to determine it's value in a licensed third party's opinion.  Normally this value is at or above the contract price.  Most banks will loan a certain percentage of the appraised value, the leftover percentage is the down payment.  Sometimes the value will be high enough that no down payment is required, but this is rare these days.  If the appraised value is lower than the contract price (rare), then the bank will most likely require the buyer to make up the diference by making a larger cash down payment.  Once there has been a satisfactory appraisal the bank will prepare all the necessary documents and send them over to the chosen title company.

Title Company

A title company's job is to provide title insurance and "closing" services.  Title insurance guarantees that the title is "clear" and that the property can be sold legally.  The title company will research the past transactions and determine if there are any adverse conditions or leins on the property.  Once they are satisfied that the title is "clear", they will issue title insurance.  If someone else does claim to hold an interest in the property and they come forward at a later date, the title insurance company either has to prove them wrong or make a settlement.  You would not be liable for this, it is their problem.  It is very, very rare that this would happen.  After the title company has "cleared" the title, the bank has all the documents ready, and the money is available from all parties; then it is time to "close" the deal. 

Closing

This is the term used to describe the actual, final transaction between the parties involved.  The "closing" usually takes place at the title company.  Everyone involved gets together, sits around a table, signs the necessary documents, and the money is exchanged.  The "closer" will explain all the documents to everyone, answer any questions, and go over the HUD statement line by line.  The HUD statement is the itemized breakdown of how the money is dispursed.  Once all this is done, the papers are signed, and the money has traded hands; the deal is done, and the property has officially changed hands.

Paying Cash

If a buyer is paying all cash for a home, and not financing any of the cost, then the deal can close much quicker.  All that needs done is to research the title and do the closing.

Contract to Purchase Real Estate

This document is the basic purchase agreement between the buyer and seller.  This is a legally binding contract for both parties. It states the property description, purchase price, closing date, and any other important information regarding the agreement.  Normally this contract is contingent upon the buyer's ability to obtain satisfactory financing-if you can't get a loan and get it with satiafactory terms, you don't have to buy the house.  If the house is not yet completed, there will likely be a spec. sheet attached.  This spells out how the home will be finished out from that point forward. 





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