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Do I have to take out a construction loan? When is my down payment due? Are there any hidden costs?

Unlike some new construction experiences, building a Greenwood Home is very similar to purchasing an existing home in terms of associated costs and the structure of the transaction, it just takes place over a longer period of time than buying a resale home.

There are no construction loans to worry about or endless charges for unforeseen material costs. You sign a contract with Greenwood to purchase and settle on both the home and your lot when your house is completed, without any surprise expenses along the way.

Here's a thorough review of what to expect:
After you determine your lot, house type, and structural options, you will sign a Purchase Agreement and pay an earnest money deposit (EMD). This deposit goes towards your total cash outlay due at closing, which will include your down payment and closing costs.

Once your Purchase Agreement is ratified, you will have the opportunity to make interior design selections including flooring, cabinets, countertops, and other finishes. We offer great standard options for all these finishes, but you may wish to upgrade them. Any design upgrade costs will be added to your contract purchase price to get to your final sales price. If you choose to add a very large amount of design upgrades, we may ask for an additional deposit prior to starting your home. This almost never happens, though!

At closing, any remaining down payment (or the balance of the home price if you're paying cash) is due, along with closing costs.

Closing costs are a normal part of any home purchase and mostly include:

  • Fees associated with the creation of your loan (if you are financing your purchase)
  • Legal fees for the search and transfer of the title
  • Government fees
  • Appraisal and inspection fees
  • Prepaid insurance, taxes, and/or HOA dues

Closing costs usually range between 2 and 6% for a home purchase, so keep this in mind when considering your budget!

To sum it up, the payments you can expect to make with a Greenwood Home purchase are:

  • At time of contract: Earnest money deposit
  • After design selection, if making extensive upgrades: Additional deposit (rare)
  • At closing: Remaining down payment not covered by your EMD (OR remainder of purchase price if purchasing in cash)
  • Also at closing: Closing costs

Outside of these payments, there are no additional fees or hidden costs, even if materials or labor go up after we start construction.

We believe in transparency with pricing and payments and we strive to ensure all of our customers fully understand and feel comfortable with their investment before they move forward!