With the help of COBS Homes, Complete Owner Builder Services, you can feel comfortable in taking your dream of a custom built home and making it into a reality. Our experienced and friendly team is designed assist you in obtaining a lot, customizing home plans, finalizing a construction budget that works for you, securing a construction loan, compare vendors and pricing, aid in loan administration and draws, until you are moved into your new custom home.

Your COBS Homes Construction Consultant will work with you to begin to analyze your new home project. The detailed analysis will not stop until you have gathered the required information to build your home on paper, so you feel comfortable to close your construction loan and start to build!

Soft Costs:

Soft costs are costs involved in building your home but that don't result in actual, tangible, materials or work that you can see. Most of your soft costs will be associated with preparing your building lot and the cost of your building department permits and fees. Additional soft costs could include, among other things, a lot survey, soil tests, water potability (perc) tests, and architectural and engineering work. Some soft costs may be required to be paid before your loan closings; most will be paid afterward. Many times, prepaid soft costs can be reimbursed from your loan account after closing. Keep in mind that building department fees vary widely from state to state and furthermore county to county. In some cases, these fees might approach $30,000 or more. In most states, however, the total could be less than $2,000.

Hard Costs:

Hard costs are those that result in actual building materials and labor to construct the bome (including your material package, finish and decor items, and other materials required to build and finish your home). One of the most important to determine is the cost of the excavation and site work required to build a home on your building lot. Preparing a building lot for the construction of a home can conceivably be the biggest "unknown" in determinung hard costs. Slope, soil conditions, and local geological characteristics of a building lot are some of the major factors that contribute to the cost of the excavation and site work. All of these factors must be accurately researched and budgeted for prior to loan closing. Many times, a terrific lot price is negated by the cost of preparing that lot for a home.

Land:

Your building lot information will be gathered in detail. You will need to determine the amount that needs to be allocated to pay the land off, whether purchasing or if you own land with a balance. All liens need to be satisfied in order for the construction loan to be in first lien position. There is no subordinate financing. If you own your land free and clear (no mortgage or payments), you will not need to budget funds for land.

Reserves:

In additionm you should be aware that certain reserves must be budgeted for in your loan. COBS Homes will help you in estimating the closing cost reserve, interest reserve and contingency reserve. The closing costs will be finalized prior to finalizing your budget. The will conceive of lender fees, insurance, escrow and title insurance fees. These will be paid through the loan at the time of closing. The interest reserve helps your cash flow during construction by budgeting funds to make your interest payments directly from your loan fund. Interest is only paid on funds disbursed during construction. If you complete your project with excess reserves the funds can be disbursed or used to reduce your final loan amount at your loan modification to permanent mortgage. The interest reserve gives you a "no-out-of-pcoket" feature, and gives COBS and the lender the security that the payments during construction will be made during construction. You do have the option, with some products, to waive this reserve and make payments during construction with your cash should you choose to do so. The contingency reserve funds are budgeted as insurance against cost overruns and incidentals. This reserve can seem excessive but they are a good back-up plan against cost overages. You can use the contingency reserve during construction or, if unused, to reduce your final loan amount.

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Do you own Land? Identified Land Land Contract / Escrow No Land Own Land / Clear Own Land w/ Balance Looking for Land Unknown
Do you have House Plans? Have Plans / Prints Working on Plans Want 1500 - 2000 1sty Want 1500 - 2000 2sty Want 2000 - 2500 1sty Want 2000 - 2500 2sty Want 2500 - 3000 1sty Want 2500 - 3000 2sty Want 3000 - 3500 1sty Want 3000 - 3500 2sty Want above 3500 Want below 1500 Duplex Unknown
Type of loan you are looking for? Construction Loan - Owner Builder Construction Loan - General Contractor Home Improvement Loan Home Equity Loan Land Loan Purchase Loan Refinance Loan - Cash Out Refinance Loan - Debt Consolidation