The Complete Guide to Buying Your Modular Home

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1 The Complete Guide to Buying Your Modular Home Brought to you by:

2 1 Who is this Guide For? We created this guide to help those people interested in building a new home to understand the benefits, timeline, and overall process of building a modular home. If you are considering building a new home, this is for you!

3 2 What s the Difference Between Traditional and Modular? Modular homes are constructed just like a stick-built house: concrete, wood, nails, screws, siding the materials are the same. You can customize modular homes in many of the same ways as site-built homes. The main difference is that modular homes are built in a climate-controlled factory instead of on your property. This gives modular houses an edge on traditional construction in several ways: The house doesn t sit half-finished in the elements as it s being built. No rain or snow can affect the structure, and it s sealed up and weatherproofed before it is moved to your site. Modular construction is much faster and more efficient because the crews and tools stay in a single location while the homes move in and out. Think of a car manufacturer: they wouldn t haul all the parts of your new car to your house and build it in your driveway. No, they ll put it together in a centralized location, and ship it to you once it s ready. Oftentimes, modular homes can be more sturdy than site-built homes. This is because it has to withstand the rigors of being put on a truck and transported to your site.

4 It s important to note that there is a difference between the manufacturer, the company that actually constructs the house in the factory and delivers it to the site and the builder, who is the company that erects the house on your lot and takes care of all of the finishing work. Paradise Homes is proud to work with New Era Homes, Commodore Homes, and Manorwood Homes, who are all well-respected manufacturers of modular houses. Having a modular home built for you involves several stages. This guide will walk you through what to expect in the modular home buying process.

5 3 Finding and Purchasing a Lot to Build on Unlike buying an existing house or a home in a planned community, when you build a modular you can put it on any lot that you choose. If you don t already own land, then finding the right piece of property is the first place to start. The two most important things to look for are land that has enough room and has the right topography on which to build your new home. The second is the ability to put water and sewage or septic on the property. This can be either public water and public sewer, well and septic, or some combination.

6 4 Deciding on the type of house you want Modular home builders offer a large variety of options, from 1-story ranches to 2 stories and cape-cods, it s easy to find and customize a plan that fits your needs and style. Our team can walk you through the process and customization options to help you create something unique to your tastes. If you can t find a floorpan that suits you, we can modify a plan that is close but no cigar, or even create a floorpan from scratch just for you. The type of house you can build is dependent on your budget and the land you are building on. Before finalizing any plans, our site supervisor will accompany you to the future home site to make sure the home you want can be built on the land you have. Until the final plans are submitted to the factory, there are no additional charges for changing your mind. Depending upon your choices, the house will be constructed complete with all countertops, fixtures, floor coverings and carpets, siding, and shingles. After you ve chosen your options and the site inspection has been completed, we will provide you with a quote for your entire project. Once you approve the quote, we will draft a purchase agreement which is what the bank will need to get started.

7 Arranging the financing for the purchase 5 When you purchase and build a modular home, you will finance the purchase with a construction loan that is then converted to a conventional mortgage when you take possession of your house. This puts you in charge of the entire process because you own the land and the house right from the start. Our team works with many area loan officers who can help you with these transactions. The term of a construction loan is normally three to four months but can also be longer. During that time, you make interest-only payments based on the amount of money that the builder draws out of the account for the various stages of construction. There are also permits that must be executed before construction can begin, and these are usually the first expenditures from the construction loan. Ordering your new home 6 Once you finalize the floor plan and house style, we will submit the plans to our manufacturer. The house is constructed in a climate-controlled factory that is very similar to an airplane hanger. This building process only takes 8-12 weeks (based on the manufacturer s workload) once it has begun!

8 7 Clearing and excavating the lot for construction This is the stage where you actually start to see things happen. The area where the house will be placed must be clear of any trees, brush and debris. The land is then prepared for construction of the basement or crawl space. After all of the debris is removed, the excavating team will dig a hole that is slightly larger than the square footage of the house.

9 Erecting the basement or crawl space 8 While the house is being built at the factory, the final preparations are being made to the lot. These include pouring the footers and building the basement or crawl space. This is what the house will sit on once it is on its foundation. For houses that will have a basement, the floor is usually poured after the house is set. Delivering your home 9 Your new modular home is delivered to your lot when it is completed. The house sections are wrapped to protect them and will travel on steel carriers and typically will arrive the day before the house is to be placed on the foundation. Some of the wrapping will be removed once the trucks have arrived, and the remaining protective coverings will be removed before the house is placed on its foundation.

10 10 Setting the house onto its foundation This is probably the most exciting day of the whole process. We recommend that you make sure to be on the site when we set your house onto the foundation the back half of the house goes up first, followed by the front half. They are then bolted together and bolted to the foundation and support columns or steel beam, depending upon your floor plan. The final step is the raising of the roof and adding dormers (if applicable).

11 11 Completing the finishing touches During this phase, the outside of the house is completed with shingles and siding, while the inside craftsmen begin finishing drywall, trim work, seaming carpets, hanging light fixtures, and final touchups. The final property improvements are also taking shape at this point, including utilities, backfill and final grading, and the addition of porches and garages. Additional Construction 12 If a garage, porch, or other structure is part of your plan, it s at this time that our team will build these onto the set and finished home. Grading and landscaping the property 13 One of the last steps is the grading your new yard. This includes the driveway (which can be gravel, asphalt or cement) and pouring the sidewalk and front porch.

12 14 Going to settlement This process is the final step. We will schedule a final inspection with your lender, and once that has been completed we schedule a final walk-through with you. During this walk-through, we will take you through each room and around the exterior, and make some notes on our Compliance form. At the completion of the walk-through process, the final monies are exchanged for keys to your new home and the green light is lit for you to move in! 15 Conclusion Though building a home will always be a large investment and a complicated process, our team at Paradise Homes are dedicated to making it as easy and straightforward as possible. Because the site work and foundation can be done at the same time the house is being built offsite, it often makes for a much quicker overall building process, and knowing that your house is being designed and built by experienced professionals from start to finish will give you piece of mind. If you have questions about the process, or are ready to talk about your ideas, give us a call at or stop by our office. We look forward to the opportunity to work for you!