If you have never built a home before it may seem like a daunting task, filled with headaches, but it can also be one of the most rewarding experiences in your life. In our opinion the later should 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 is happening.
Then we will own the home until the end of the process, at which point there will be a closing, and the customer will buy the home from us. CW Homes Inc. will be responsible for all construction financing, construction costs, insurances, etc. We will agree on a pre-determined set of construction specifications and allowances for how the home will be built and finished. These specs will be part of a purchase contract that we will agree upon at the beginning. Refer to the 'Buying a Home From Us' page for more details.
Then the customer will own the home from day one. The customer will be responsible for construction financing. CW Homes Inc will carry builders risk insurance on the home to be built, which protects against fires, theft, natural disasters, etc. during construction. CW Homes Inc. will have an agreement to build the home for the customer, on their land. There will not be a purchase agreement, or a "closing" that CW Homes Inc will be a part of, as the property will not change hands. The agreement/contract will include a set of specifications, allowances, methods, etc., describing how the home will be built. There will also be an agreed upon construction draw schedule to determine progress billing and payment during construction. This is an agreement between CW Homes Inc. and the customer, not a bank. However, we understand there will likely be a bank involved, and we expect to work with banks on draws/funding and such. We will not ask for payment on something before it is done.
Many people have a bank/banker of their own, but we can provide references as needed, we have several banks that we work with regularly, who treat people fairly and honestly. What you will need to start financing is a house plan and specifications (the contract we will sign). Once the bank has those items, they will be able to start the process on a construction loan. Once the loan is closed, it will be good for some period of time, likely around one year. Interest is paid only on the amount 'drawn', not the total amount, so expect to pay very little interest at the beginning, and more at the end. When the home is done, and before the construction loan is due, you will probably want to get a mortgage. This mortgage loan will pay off the construction loan. The mortgage doesn't have to happen before you move-in, but the home needs to be complete and all the bills need paid before a mortgage. CW Homes Inc is basically not involved with the mortgage process, but again, we will work with everyone involved as necessary.
If a buyer is paying cash for a home, it works the same basic way. CW Homes Inc has an agreement/contract with the customer to build the home, and payments would be made in accordance with the agreed upon draw schedule. Only difference is there is no bank involved.