What to Look for in a Good Lender

I've had a lot of good and bad experiences with this lately. Here are the top three things that I've been looking for:

♦ Available and easy to contact.
This doesn't mean that they have to answer the phone each and everytime no matter what. That's not a realistic expectation. I do however expect them to return calls that day, or have a message explaining that they can't get to phone calls that day (ie: out of town, in meetings all day, on vacation) There's nothing worse than a lender who doesn't communicate and a client that feels left in the dark. It's hard enough to keep the enthusiasm up without dealing with that.

♦ A clear understanding of their loan programs
I've recently had a lot of problems with lenders that tell me or my clients one thing and then something completely different the next time we meet. This is very frustrating! For example, within the last month I had a lender set the expectation of a 30 yr fixed loan at about 6.25%. The next time, the loan suddenly had a 7 yr balloon payment. The next time, it was a 2 yr balloon payment. I pulled my client out of there and we went with someone else.
There are things out of the lender's hands that he can't help, for example regulations change often. At the same time, It's important that a lender is up on all of the changes that would affect the client's loan. I feel more confident in a lender that tells me "I'm not sure, I'll find out for you." than I do in a lender that says "Yeah, that's not a problem." when he really has no clue what he's talking about.

♦ Programs that are realistic and work in this market
Right now, the biggest thing I look for is realistic programs that will work for my clients. I ranted and raved about the last 2 things, but I'll put up with them if it's the only option for my client that will work. For example, 20% down for a construction loan on a $200,000 would mean that my starter home client would need $40,000 to throw on the table. That's not realistic for that type of client, let alone a move up client in a lot of cases. I'll put up with A LOT of garbage so that my client only has to come up with 5%! If that's the only option for my client, I'd rather smooth things over again and again because the lender at bank X only calls once every other week with a report than just lose the client. This is a market where every client is more important than ever.

Gregory D. Brown
www.legacyhomedesign.com

Location, Location, Location?

Right now, we know of quite a few lots in Orem, UT that are a great deal, but aren’t necessarily in the best locations. We’re targeting these lots to build houses for clients on them because of the price. Many interested people have asked me how that affects the value of their home in the long run.

In my experience, the old adage “location, location, location” holds true when comparing houses of like size. What do you do if you have a property where the location isn’t so good? What if you’re interested in a home that isn’t in a prime location?

As a seller, the main way that I’ve been able to offset a bad location is with price. In a purchase, a bad location doesn’t necessarily scare me off. However, if the location is bad, I better be getting a great deal when compared it to similar homes in better areas. In my opinion, there will always be people out there that are willing to give up “location” for a better price.If you’re going to buy a home in a location that’s not as good, that’s not necessarily a bad thing. However, if you’re paying the same as you would for a similar house in a better area, you’re not buying smart. You should be getting a great deal and expect to be giving a deal when you sell it on down the road. People would argue that your purchase won’t appreciate as well, but this is only partially true. It’s all relative. As long as you buy right, you should be in an okay position to sell when the time comes and get plenty of appreciation. As I’ve been told, “You make your money in the purchase of a property, not in the sale.”

Back to the Orem Lots, they’re currently priced at about 50% of what other comparable lots are. When you consider that you could build and buy one of our houses on one of these lots for the same price as an older home of the same size that’s in a comparable area, I’d say you’re in a good position. You just have to remember that when you sell, you’ll be competing with those same homes. You’ll look great against those homes, since you’re newer for the same price. Newer homes in a better location are not your competition, however. They paid more for their home originally, so even though they might get more for the sale of their home, they didn’t necessarily make more than you did.


Gregory Brown
www.legacyhomedesign.com

Pick your Home Designer and Draftsman Wisely!

In selecting a good draftsman, I would suggest the following questions and qualities to consider:

(1) How much experience does the draftsman have and how many homes have they designed?
I know for myself, I knew a lot when I worked for the Architectural Coalition. When I broke off to do plans on my own, I was able to apply what I had learned over the previous 7 years and come up with what I felt were good plans at the time. Now that I've been in business for myself for the past 4 1/2 years and have built my own house, I look back at some of those plans and cringe. The more houses a draftsman has personally done and seen through the building process, the better he's going to be.

(2) Does the draftsman understand how to design cost effectively?
Again, this is another one of those things that comes with experience. Does the draftsman consider what the roof framing is going to be like as they design? Do you see overbuild all over the place when it's not necessary? Do they consider the size of the floor joists when they put in bearing walls? A 9" joist is less expensive than a 12" joist. Do they stick to exterior dimensions that make the most sense? For example, if your draftsman is designing homes with exterior dimensions such as 31'-3", they might as well have rounded up to 32'-0" since the sheeting comes in 4' increments. This saves on waste and cutting, but provides the framers with easier dimension to work with to save on error.
These are just a few things that should go through a draftsman's mind as they design. If they understand what they're drawing, these things are all considered and implemented during design, not retrofitted on site.

(3) Can you get in contact with the Draftsman easily?
This is a consideration for many trades in the building industry. a sub contractor who you can never get a hold of isn't much good. Building isn't a perfect science. When you're building a house, if you come across a discrepancy or question, you need a draftsman who you can get a hold of and get quick answers or solutions.

(4) Does the Draftsman take the site into consideration?
Many lots have unique attributes that need to be addresses. For example, the lot may slope a certain direction or might have a high water table. The lot may have a wonderful view to take advantage of. This is a big problem with using a stock plan. It wasn't designed with a certain lot in mind. A good draftsman will make the best use of the lot. Whether it's positioning the house in a way that you can keep a huge oak tree, or designing the roof in a way to drain water to the sides of a house when the lot naturally slopes towards the back of the house in order to avoid excess water that could flood a basement.

(5) Is the Draftsman Creative and are they open to your ideas?
It's important that a house has curb appeal on the exterior so that it can sell easily in the future. That doesn't mean it has to be expensive, it just means that the Draftsman has to take some thought when designing the home. They should however, be open to what the client wants and not try to force their own tastes upon them. Just because a Draftsman loves craftsman style homes does not mean the person building it does. The job of a draftsman is to take your ideas and put it all together in a way that is not only functional and cost effective, but looks great and makes you happy when you drive up to it.

(6) Does the Draftsman make the best use of the space in the plan?
The solution to every problem when designing a home should not be adding more square footage. For example, I've designed a 1000 sf home that not only had 3 bedrooms and 2 bathrooms, but still felt open and functional. Adding square footage isn't always an option and doesn't need to be with a good draftsman.


Hope that helps!

Gregory D. Brown
http://www.legacyhomedesign.com/

Standard Features in a New Home

Standards can vary quite a bit from builder to builder, but this is a list of typical base standards you could expect to find in a new home. Things such as Granite, 9’ ceilings, full masonry exteriors, stamped concrete, etc. would generally be considered upgrades.

Keep in mind that if a builder tells you they “include” all of the upgrades, it’s really just you paying for it. Don’t hesitate to ask your builder to take the upgrades out so that you can create a more affordable home. You can always add the upgrades back in later if your budget is looking good.


GENERAL
2 Year Home Warranty
2x4 Exterior Wall Construction
Nailed and Glued 3/4" Subfloor (tongue & groove)
Ice and Water Shield on All Eves

EXTERIOR
20% Stone or Brick on Front
Maintenance Free Stucco Exterior Finish
30 Year Architectural Asphalt Shingles
Aluminum Rain Gutters
Insulated Steel Entry Door w/ Kickplate on front door
Energy Saver Dual Pane French or Sliding Glass Patio Doors
2 Car Garage with 16'X7' Steel Door
Two Decorative Lights on Garage
Front and Rear Water Faucets
2 Outside Weatherproof Electrical Sockets

INTERIOR
Oak Handrails and Balusters
3 Panel Colonial or 6 Panel Contemporary Interior Doors
Polished Brass or Chrome Hardware & Knobs
Colonial Door Casing and Baseboards
Colonial Window Sills
Old World Textured Drywall Finish
Rounded or Squared Corners
Two Tone Paint in formal areas (Entry, Master Bed)
One Tone Paint everywhere else
Built-in shoe shelves within bedroom closets
Easy Clean Single Surface Bathtub & Shower Surrounds
Polished Chrome Plumbing Fixtures
Walk-In Master Closet (Varies with Floor Plan)
EasyCare Tri-rolled Laminate Vanity Countertops
Quality Vanity Cabinets

ENERGY EFFICIENCY
80% High Efficiency Gas Furnace
Programmable Thermostat
40 Gallon Gas Water Heater
R-13 Wall InsulationR-38 Ceiling Insulation
Low-E Energy Efficient Dual Pane Vinyl Windows
Low Consumption Toilets

FLOOR COVERINGS
30 oz. Polyester Short Cut Pile (Typical $20/yd allowance)
Vinyl Flooring in Bathrooms and Kitchen

KITCHEN
Self-Cleaning Electric Range
Hood/Microwave Combo
Dual Stainless Steel Tub Kitchen Sink w/ Sprayer
Energy Saver DishwasherGarbage Disposal
Quality CabinetsStorage Pantry (Varies with Floor Plan)
EasyCare Tri-rolled Laminate Vanity Countertops


Gregory D. Brown
www.legacyhomedesign.com

6 Steps to Building a New Home

Step 1 – Financing:
It’s important to figure out what kind of a budget you have to work with before we start the design process. If you go to our website, you can contact one of our preferred lenders from the “Additional Contacts” section of our website or go with a Lender of your choosing.

Step 2 - Designing:
This is the part where you bring all of your ideas to the table and we the project starts to take shape. Along the way, there are usually a couple of revision cycles that we’ll go through. We also like to have the contractor involved during this phase to ensure we’re designing within your budget. As soon as it’s refined to your liking, full construction plans are created. A Structural Engineer is then hired to size all of the beams, joists and trusses for submittal to the city.

Step 3 - Building Permit
After the plans are submitted into the city, they are looked over by plan inspectors to make sure that they are compliant with the latest local and national building codes. This takes somewhere between 2-6 weeks, depending on the city. Revisions are then made to the plans as requested by the city if needed.

Step 4 – Coordination
While the plans are in the city, the Contractor will meet with you and go over the final bid and cost breakdown on the house. You’ll also be able to refine many specific things such as carpet and counter selections at this point. Your Contractor will also help you get all the necessary information that you’ll need for obtaining financing of the project.


Step 5 – Construction
As soon as a building permit is obtained, the contractor can then start the actual construction of the home. This phase usually takes between 3 and 6 months, depending on the size of the project. During construction, you can be as little or as heavily involved as you want while your house comes to life.

Step 6 – Closing
When the home is complete and the final walk-thru has been done, your Lender sets up the closing with a Title Company and the permanent financing comes into play. As soon as the appropriate documents are signed, you are the official owner of the unique home that you helped design.

Information provided by
http://www.legacyhomedesign.com/