What Can I Afford?
Important Information | Mortgage Calculator
Important Information about Financing
Royal Homes has arranged some of the most favorable mortgage programs available with both local and national lenders, saving you money and time in selecting a mortgage lender.
Because our homes are “systems built,” costs are controlled and this enables us to pass on the savings to you. Begin building your home with our modest base pricing and choose the options that will give your home that custom look while staying within your budget.
Homeownership is one of the most rewarding opportunities we can participate in. With it comes excitement, challenge and responsibility that should be taken very seriously. Royal Homes stands committed to helping you along that journey.
What are closing costs?
These are costs to originate your loan and/or to transfer a title or secure a lien on your property. Closing costs also help meet the lenders’ requirements when a loan is involved. Most closing costs can be included in your contract.
What is the difference between a construction loan and a first mortgage loan?
A construction loan provides the money to buy your property, make improvements to your property and to pay the builder for your home. Typically a construction loan is available for up to 80 percent of the sales price. Interest is billed directly to the customer for any interest earned on the outstanding loan balance during the construction period.
A first mortgage loan is your “permanent loan.” Once your home is finished and has been inspected, an appraiser will go out on your and the bank’s behalf to verify that the home has been completed according to your sales agreement. After verification, your home closing will be scheduled. The first mortgage loan will pay off the construction loan and becomes your permanent mortgage.
How do we go about finding a loan?
Royal Homes does not make loans. Your Raleigh modular home consultant can refer you to a lender who will help you determine the best loan program for you. With a properly executed sales agreement and credit application, your licensed loan officer can help you negotiate with a number of lenders to get you the very best loan offer. This process takes 3-5 business days with excellent credit. Please allow a little longer if your recent financial picture is less than excellent.
How much money do we need to get started?
This is going to depend greatly on how your sales agreement is written. A model home already located on a lot requires the least amount of upfront investment. A build-to-suit home on a yet-to-be-identified piece of property requires the most. There are some common elements. They are:
- Earnest money - $500.00 is the typical consideration required upon execution of your sales agreement. This shows the company that you are serious about owning a home and that you want the company to begin investing its time and resources for you to move your agreement forward.
- Land – Offer to purchase money – $500.00 is the typical consideration required to get a seller/Realtor to sign a contract for sale of a piece of property.
- Appraisal - $350 to $450 depending on your loan type. Your lender is going to require an appraisal be done on the home and land as a package prior to issuing your final loan commitment.
- Title search – $400 depending upon the complexity of the search. Your lender is going to require a title search be done on the land prior to issuing your final loan commitment.
- Survey – $350 and up depending upon the size and characteristics of the property. In some instances, the lender may require a survey when there has not been one done recently. In other cases, we must determine property lines in order to obtain permits and to make certain zoning setback requirements are met.
- Permits - $400 to $800 depending upon the type of work required and the county the home is going to be built in. Permits are required before construction can begin and it is prudent to obtain permits so that you can make certain you are able to use the property in the way you intend before closing on it.
This comes to $500 for an already-built model home, and $1500 to $2000 for a build-to-suit.
I thought I read that all of those costs could typically be included. Can they?
Your earnest money, whether for your sales agreement with Royal Homes or the sales agreement for land, will be applied to your down payment at settlement unless otherwise agreed upon in writing.
Many of the other fees or services outlined above are required in order for you and your lender to make certain you are making a sound investment. Those fees are considered earned at the time the service is rendered, regardless of the outcome. In order to expedite your transaction, we need to have funds available to pay for those required services.
For build-to-suit homes, whether on your own lot or on one owned by a third party, you are required to provide enough funds upfront to meet all the requirements of your lender and those of the permitting agencies.
Money can be included in your sales agreement to reimburse you for your initial out-of-pocket expenses outlined above. If you fail to complete your purchase for any reason other than a contingency outlined in your sales agreement, your earnest money will be retained as liquidated damages to pay for the time and resources expended on your behalf by the company. The sums you have advanced for the payment of fees and services are refundable to the extent services have not been ordered and rendered. If work has been completed, you will be furnished with the results of that work.
What about zero down?
Sometimes misleading ads will say that you need zero down payment. While there are programs for qualified buyers that allow for zero down, it does not necessarily mean that there are not any costs associated with the purchase that must be paid upfront. Your home consultant will work with you in whatever way possible to help you maximize the use of your available funds.
Mortgage Calculator
To use the mortgage calculator, enter your loan amount, your interest rate, tax, insurance, and how long your loan will last in years. The calculator will show you your approximate monthly payment break down. Note: these figures are not exact due to rounding, but should give you a good idea of your payment. Remember, closing costs and other fees are not included in this calculation.
Please change the values for each as they are appropriate to your situation. Then press the calculate button to see your corresponding payments.
