How are net proceeds calculated on a home sale?

BREAKING DOWN ‘Net Proceeds’. When calculating net proceeds on a home sale, the outstanding mortgage or other liens on the property, commission for the seller’s agent and the buyer’s agent, excise tax and other closing costs owed by the seller are subtracted from the gross sale price of the home.

What happens when you buy a new construction house?

Worse yet, you could be purchasing a renovated house with unpermitted work, which can open up a whole other can of worms. New construction eliminates that possibility because builders are required to follow today’s energy and code requirements. 3. You can personalize the house to suit your tastes

What should I know about the construction process?

The Renovations and additions and Buying a home off the plan articles include more information on the construction process specific to those situations.

Do you have to pay for new construction?

Any work you do to turn an existing home into your home is going to cost you. New construction allows you to choose the finishes that you want, therefore eliminating the added cost you’d have to pay to renovate. 1. You have to vet the builders

Do you need a construction loan to buy a house?

For example, if you wanted to buy the raw materials to build your own house, you might take out a construction loan to help support your purchases. A home loan for a new construction is when you borrow money for the purpose of buying a home from a builder. 4. How does the mortgage application process differ for a new construction home?

Do you have to get a mortgage to build a house?

You may have to take out a mortgage loan that will cover the costs of your construction loan, essentially allowing you to bounce from one type of loan to another. A construction-to-permanent loan provides financing for the construction of your home and becomes a mortgage loan once your home is built.