Answer: Thank you, MaeJean, for your excellent questions.

On your first question, construction for a new home takes approximately five to seven months. After a contract is written, it takes 30 – 45 days for construction to begin. We apply for a building permit from the city, and we’re also getting our construction loan in place to build your home.

Weather can either slow down or speed up the building process, and summer is typically the best time to build. Rain and cold temperatures definitely slow things down.

Yes, we do pay closing costs on a cash deal. We will cover a buyer’s title insurance, closing fee, survey, recording fees and any other fees charged by our preferred title / closing company.

For cash buyers building a custom home from the ground up, Home Creations offers a two-percent discount. A payment / draw schedule is attached to the contract, with the first payment due when the buyer closes on the lot.

A buyer may swap the two-percent discount for two percent in free upgrades if that is a better option. On a $150,000 home, for example, we would either cut the price by $3,000 or keep the price at $150,000 and give the buyer $3,000 in free upgrades. Those upgrade options are endless!

We’re ready, MaeJean, to get started on your new home! Are you?

Answer: Hello Robert. In checking with my Home Creations warranty manager Tony Chrisman, he said that a one-year builder’s warranty covers materials and workmanship only for the roof. Any damage caused by weather – strong winds, hail or tornadoes – falls under your homeowner’s policy and not the builder’s warranty. In general, items outside the home – fences, grass, landscaping and concrete – are typically excluded from any builder’s warranties because there is no control over the outside elements – snow, extreme heat, extreme cold, rain, humidity, wind, rain, flooding, etc.

Tony also advised to check with the builder’s warranty guidelines to ensure that the repairs you make don’t void your one-year builder’s warranty. Your builder should give you the name and contact information of the roofing contractor who did the initial installation.

Best of luck in getting your roof repaired. Homeownership is, indeed, a blessing for you and your wife. Unfortunately, some of the responsibilities that go with it aren’t so joyful.

Answer: Hello Lynda. While there may be consequences of breaking the first contract to purchase the home you like more, it’s perhaps better to back out now than to buy something you really don’t want.

First off, review your purchase contract to see what the penalties are for breaking the contract. You may have to forfeit your earnest money, and you also might lose any money you’d paid a lender to start the mortgage process (application fee, appraisal, credit report, survey, etc.)

If you have a Realtor working with you or if an attorney helped prepare the purchase contract, meet with him/her immediately to find out what additional consequences you’re facing if you bust the contract. In addition to losing earnest money, many contracts call for “specific performance.” This means that the seller could sue you to do what you said you’d do in the contract – purchase the land.

If after exercising all your options you decide to cancel the contract, everything must be done in writing. Have your Realtor or attorney prepare a “Release of Contract” form to present to the seller. If no one is representing you, prepare the form yourself and be sure that the issue of the earnest money is addressed in the release – will it be refunded to you, will a portion be refunded to you or will you lose the money all-together? All the parties who signed the original purchase contract must sign the release. Make sure that a signed copy is sent to the lender and to the title company.

Best of luck as you decide what you’re going to do. May you end up with the home of your dreams – without too many complications in the process.

Answer: Congrats, William, on your decision to purchase an ENERGY STAR home. You’ll be amazed at your heating and cooling savings. The Environmental Protection Agency predicts you’ll save up to 30 percent on these costs each year.

Other energy-saving items you can incorporate into your new home:

Use compact fluorescent light (CFL) bulbs throughout your home. According to ENERGY STAR and GE, CFL bulbs use 75 percent less energy and last eight – 10 times longer. If you change eight 60-watt incandescent light bulbs to 13 watt ENERGY STAR qualified CFLs, over the bulbs’ lifetime you would save an amount of energy equivalent to burning one ton of coal. Turn all lights and appliances off when they’re not being used.

Recycle plastics, paper, glass and cardboard. If your city offers curbside recycling, take advantage of that convenience. If you don’t have access to that service, find out the convenient location of your city’s recycling centers. When you mow, don’t bag your grass.

Limit or eliminate the pesticides and chemicals used around your home, both inside and outside. When shopping, don’t get a plastic bag for small purchases. Better yet, invest in canvas bags to take with you shopping. Recycle plastic bags at participating merchants.

If implementing all these green suggestions seems a bit overwhelming, pick one to do for the first six months you’re in your new home. After that, adopt another change. Thank you for your dedication to going green for the good of the earth!

Answer: Hello Kandice. We work with lots of first-time buyers who are tired of throwing their money away on rent. We have a Realtor on staff who has great insight when renters tell her they can't afford to purchase their own home. She tells them that they already are purchasing a home - it's just for someone else, their landlord.

We offer a variety of financing programs through our lender that are designed to help first-time buyers into their new home. Here's a brief run-down:

1. FHA financing - this is the easiest type of home loan for first-time buyers. The minimum down payment is three percent of the sales price, and the down payment can be your own money or funds given to you as a gift from a blood relative. FHA loans allow for your new home payment to be 31 percent of your gross monthly income (29 percent for a used home), and your combined monthly credit debt, including house payment, cannot exceed 43 percent of your gross (41 percent for a used home).

2. Down payment assistance - For buyers who don't have the three percent down payment for an FHA loan, we work with a company that provides the money for you at closing. The sales price is increased to cover the three percent investment, along with a small administrative fee charged by the down payment assistance company. Buyers who use this type of financial assistance have a slightly higher monthly payment, but they don't have to come up with their own funds to purchase the home. There is no first-time buyer requirement for this type of program.

3. YES! We pay closing costs - When you use our preferred lender for your financing, Home Creations pays your basic closing costs to get you into your new home. This equals a savings to you between $2,000 - $2,500.

4. $500 Moves You In - this is a Home Creations program designed for buyers using down payment assistance and our preferred lender. Your initial investment in the home is $500, and Home Creations covers your down payment, your basic closing costs and your pre-paid items less $500. Keep in mind that your monthly payment will be in excess of $500.

5. Bond loans - these loans are offered through our preferred lender and usually provide a lower interest rate than regular government loans. In addition, the income of the borrower and the purchase price of the home cannot exceed set guidelines, which are pre-determined by the bond authority that issues the financing. Make sure you understand all the perimeters of a bond loan so you won't be surprised with any prepayment penalties if you sell the home.

As you can see, Kandice, there are many financial options to help first-time buyers into their new home. We would welcome the opportunity to share more information with you. Let us know how we can help.

Answer: Thank you, Amanda, for your question. You’re a very smart woman to question this statement, and I’m proud that you didn’t cease your home search if you knew your credit score was below 700.

While it is true that mortgage companies have tightened their lending requirements over the last year and non-conforming loans (no document loans, stated income loans, adjustable rate loans, etc) aren’t as easy to qualify for as they once were, there are still plenty of great mortgage opportunities out there for you.

Credit is based on a numerical scale, and the higher your number, the better your credit history. Also, credit is graded like scores in school. Great, top-notch borrowers are referred to as A borrowers.

When you make loan application for a mortgage, your lender will look at your credit report, your credit score and other financial information such as how much money you have in the bank and other investments / assets. If your score is around 650 and you have $7,000 in combined savings / investments and assets, you might be a better qualified borrower than a person who has a 710 credit score, a high debt-to-income ratio, $100 in her checking account and no savings or investments.

In other words, while your credit score is important, it’s not the only variable that a lender considers in your qualification process. Before starting your home search, I recommend meeting with a lender to start the mortgage process. The lender will find out about your current financial situation, income, debts, job history, assets, investments and credit report. Based upon this information, you’ll find out what amount of mortgage and house payment fit your budget. If your credit score is on the low side, the lender will give you guidelines on improving your score.

At Home Creations, our preferred lender, JMR Mortgage, will be happy to meet with you, at no obligation, to start your mortgage process. Most borrowers qualify for a much higher house payment than they want to spend each month, and they often pleasantly discover that their credit history is much better off than anticipated.

Best wishes, Amanda. I’m sure Home Creations has the perfect home for you and your credit report.

Answer: Congrats, Brenda, on the decision to purchase a new home. Your situation is called a "contingency" – you want to (or need to) sell your current home in order to purchase a new one. It can be a daunting process to coincide the timing of selling your current home and closing on your new one all at the same time. Let me ask some questions before we investigate the builder trade option:

1. Is your current home listed for sale with a Realtor, or are you trying to sell it yourself? At Home Creations, we only take contingencies when the home is listed with a Realtor. They are the professionals in the home-selling business. If you’re trying to sell it yourself, consider listing it with a Realtor who specializes in your community. This should speed up the sales process.

2. With your new home financing, can you qualify for your new home payment without having to sell your current home? In other words, can you qualify to make your new home payment and your current home payment at the same time? Are you counting on proceeds from the sale as a down payment on your new mortgage? Talk with your lender about a bridge loan. This allows you to tap into your current home’s equity and borrow money to continue with the new home purchase. You go ahead and close on your new home, whether or not you’ve sold the other one yet. The bridge loan is repaid upon the successful closing of your current home.

Now let’s look at the option of doing a builder trade. This means that the builder would be your buyer, and upon the completion of your new home, you go to closing where the builder first purchases your current home, and then you turn around and close on the new one. The proceeds you net from the builder’s purchase are used for your new purchase.

Find out how much the builder is willing to give you for your current home. Chances are, if you sell it to someone besides the builder, you’ll be able to sell it at a higher price and make more profit. Typically, builders will give buyers anywhere from 70 – 80 percent of the home’s value when taking it in on trade. The builder trade scenario is just like trading in your used car for another one. You can probably make more money if you sell your car yourself, but the convenience in taking it on a dealer trade is often times well-worth the headache and hassles of doing it on your own.

Crunch the numbers, or enlist the help of your Realtor or lender to see if the builder trade is a good option for you.

Best of luck, and I’ll keep my fingers crossed that your dilemma ends in a win/win for everyone involved.

Answer: Hello Linda. A home trade with Home Creations is possible, and it's looked at on a case-by-case basis. Here are some general guidelines:

First of all, we require that the home you'd be buying be at least 25 - 30 percent more valuable than the one we'd take in trade. For example, if your current home is valued at $100,000, you must purchase one with us that is valued at $125,000 or higher. We don't trade down.

Now let’s look at the option of doing a builder trade. Home Creations would be your buyer, and upon the completion of your new home, you go to closing where we first purchase your current home, and then you turn around and close on the new one. The proceeds you net from the builder’s purchase are used for your new purchase.

How much is Home Creations willing to give you for your home? Chances are, if you sell it to someone besides Home Creations, you’ll be able to sell it at a higher price and make more profit. Typically, we'll give you between 80 - 85 percent of the home’s value when taking it in on trade. The builder trade scenario is just like trading in your used car for another one. You can probably make more money if you sell your car yourself, but the convenience in taking it on a dealer trade is often times well-worth the headache and hassles of doing it on your own.

Thank you for your interest in Home Creations. We'd love to help you into a new home. Let us know how we can help you!

Answer: Congratulations, Matthew, on following your lender’s advice to take care of your credit. You are to be commended for taking the time and energy to repair your credit history so you can move ahead with home ownership.

Without knowing all the details of your new home purchase and without seeing a contract, it’s hard for me to determine what steps you should take. However, let’s look at a few questions:

1. What closing date was listed on your purchase contract? If the closing date has passed, the contract may be null and void. However, if your builder / seller sold your home to someone else while you were still under contract, there may be legal ramifications. A seller cannot be under contract with two different buyers at the same time for the same property unless one contract is written as a back-up offer.

2. Was the purchase contract contingent upon financing? In other words, does the contract state that if financing is not available to the buyer, the contract is null and void?

3. Did you ever sign a Release of Contract since you could not obtain financing?

4. Did you ever receive a refund of any earnest money you put down with the contract?

Review your purchase contract and all the paperwork you received from the builder to answer the above questions. Schedule a meeting with the builder to address your concerns. If you determine, either through your own research, a Realtor or an attorney that the builder acted in a legal manner, I’m sure that he/she would love to work with you on another purchase. If the builder acted illegally, then you should take whatever steps are appropriate for your situation.

If you don’t want to continue working with this builder, look for another one. Ask your friends and family for referrals or do research through Realtors or on the internet.

You deserve a new home, and don’t let one negative experience deprive you of achieving the all-American dream of home ownership!