Are closing costs more expensive for home construction than for a standard home purchase?

No, the closing costs on any loan are independent of the loan itself. Closing costs represent all of the third party items needed to close the loan...title work, appraisal (usually), attorney fees (if you live in an attorney state), recording fees, prepaids etc. The closing costs on any loan are usually between $2700-$3500.

Yes.. They are more expensive since you first get construction loan.. And then when the home is complete, you have to get a mortgage to pay off the construction loan.. This only applies if you are building your own home.. if you are purchasing a home in a new home subdivision, then usually you just put down a deposit, and 6 months later when the home is built, you apply for a mortgage, bypassing the need for a construction loan, and the costs associated with them.. Ultimately, the cost for a mortgage on an existing home will be less than a construction loan converting to a mortgage... The I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

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Construction is what I do in Utah and Idaho. Construction loans are about the same as any other home loan. So, no, they aren't any more expensive. However, as was mentioned before, you may have costs twice. One when you get the construction loan (this is a short term loan that only covers the construction), and a second set of costs when you get the "long term" (your final loan that pays off the construction loan). There are two types of contrcution loans. 1- a "one time close" which allows you to get the final loan and construction at the same time. 2 - "two time close" which is the construction and long term separatly. There are advantages to both. The one time close only has 1 set of fees. The disadvantage is that if you are doing any kind of custom work, it is difficult to make any changes because the long term loan has already been set. The two time close allows for custome work and changes right up to the last minute. Call me if you have any questions. My cell phone is 801-628-7667

a construction loan is completely different than a reg loan.. i do construction loans, please visit my website at www.yourloanpartnerfolife.com linda you might have to copy and paste into your browser depends on your servier linda

The closing costs are not more than a standard purchase however your out of pocket is typically more on the construction loan. The big reason is in transfer taxes. you generally will split costs with a seller and can even get them to pay the closing costs on a standard purhcase. However on a construction loan you only split on the land purhcase. typically if you buy both land and building from a contractor you will pay all closing costs with no split or help.Plesae feel free to call with any questions as a new contruction home is a completly different loan.Tony Serg410-878-29051-866-281-1003