When you’re building or buying a new home, a real estate agent is often the first person you encounter in the process. Beyond simply collecting her commission after selling you a home or a piece of land, a real estate agent is an expert at handling contract negotiations and will be able to tell you about the features of the neighborhood you’re considering.
Don’t be afraid to use your real estate agent for her knowledge — you’re paying for it! If you plan on building a new home or addition on any property, explain this to the agent. She’ll be able to provide information on the local zoning and building codes and let you know what’s possible (and what’s not). Real estate agents are also great referral sources for finding mortgage brokers, architects, and contractors, so be sure to ask for your agent’s help with that as well.
The Certified EcoBroker program (
http://www.ecobroker.com) offers a way for agents to distinguish themselves and attract green-minded buyers. Agents who have gone through the certification program will be able to offer you a valuable insight into choosing an energy-efficient home as well as rebates available for green buildings. To date, nearly 750 agents have been certified in 31 states. Ask your agent if she’s a Certified EcoBroker, or go to http://www.ecobroker.com to search for a Certified EcoBroker in your area.
Perhaps the biggest financial burden you’ll ever face is your mortgage. But unless you’re a rock star or a hotel heiress, a mortgage will be the only way you can build your green dream home.
A mortgage broker will help you find the best loan and rate for a construction loan for your new home. Before talking with a mortgage broker, do your homework and research the best rates available to you. The business section of your local newspaper will carry a list of the best available rates, or visit sites like
http://www.bankrate.com for a listing. When you meet with your broker, ask him to match these rates. Be prepared to bring with you the paperwork to prove your income and assets. The broker will need this information in order to find you the best loan for your needs.
Keep in mind the mortgages and construction loans available to you will vary based on your income, your credit rating, and the value of the property after the project is complete.
Because the lender cares about the property value after completion, it may have some say in the size of your project. Don’t be surprised if the lender asks you to reduce the size of the home, change the number of bedrooms, or consider using traditional construction methods instead of green ones. Your broker can help negotiate the terms with a wide array of lenders.
Tip: A movement of green financing options has been growing. The idea is simple: A green building has lower operating costs, enabling the homeowner to afford a larger mortgage. New mortgage programs for green buildings are now available in certain areas. ....read more
Share This Article
