Additions and the home closing process

jessiemacMarch 11, 2012

Hello! My husband and I are just wrapping up building our fist home. My question is, We added a few things during the building process i.e. upgraded to stainless steel appliances, better windows, etc, Does the cost of those add-ons get wrapped into our loan at closing or do we pay cash for them? Any knowledge helps thanks!

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Is it builder financed, or bank?

Usually, with a bank mortgage after a build, you will only be given a mortgage for what your house is worth, not what you paid. Often, that is less than what you paid, and so you will be "paying cash for them". But, it depends on your area, your appraisal, and your financer.

    Bookmark   March 11, 2012 at 7:05PM
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Do you have a construction to perm loan? If so, the loan is in process, as is the agreed upon price. Any upgrades will be paid by you. The only way to add them back into the loan amount is to do a refinance, which is cost prohibitive to do for only a few thousand dollars of upgrades.

    Bookmark   March 11, 2012 at 8:35PM
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