Padilla Homes
7 STEPS TO BUILDING
Step 1
Pre-qualify for your permanent Mortgage Loan
The amount of mortgage loan you qualify for, combined with the amount of money you want to use for a down payment establishes your total budget for your new home.

Pre-qualifying for a loan is fast and informal, and many lenders will perform this service over the telephone. Simply talk to a mortgage company or bank loan officer, answer a few questions about your income, the amount of money you will be putting down, and your current loans and credit card payments. Some lenders will want to do a credit check at this stage, which costs between $50 and $60. The lender will then tell you how much loan you can qualify for at his institution, based on the information you have given him.

Once you establish your budget you can decide exactly how best to allocate it between the lot and the structure.


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Step 2
Choose a Floor plan — Decide on the location

Based on your total budget and on any location requirements you have, your builder will make suggestions to help you maximize your housing dollar between the cost of the building site and the cost of construction. He will begin to show you what floor plans he has that fit your needs, and where he can build them within your budget. Padilla Homes has developed a library of dozens of plans to fit a variety of tastes and budgets.

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Step 3
Understand what's included in the price and what the changes you want will cost.

Padilla Homes has developed detailed lists of the standard features of our Basic Homes and our Luxury Homes. In reviewing the list, you will note that structural integrity is the same for both Basic and Luxury. The differences between these two ways of pricing any floor plan are highlighted in color for easy comparison. We make every effort, however, to be as flexible as possible in offering the personal touches new home buyers dream of.

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Step 4
The Building Proposal & Contract

When you have decided on your lot and floor plan, your preferred building package (Basic Home or Luxury Home), and as many upgrades as you can foresee, Padilla Homes will present a building proposal. This will include a plot plan, showing you how the home fits on the lot and where the rock wall will be located, a full sized set of plans, a set of building specifications, and a contract which includes an addendum detailing any upgrades or extras you have decided on. These documents detail the entire agreement between you and Padilla Homes, and need to be reviewed very carefully and amended if necessary before signing.

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Step 5
Apply for your permanent Mortgage Loan

Your contract will require you to fill out a loan application within a few days. To apply for a mortgage loan assemble the following information for the lender you have chosen:
• The name and address of your current landlord or mortgage company, and the loan number if you have a mortgage on your current home.
• Name and address of each employer for the past 2 years, W-2s for the same period.
• Last 2 months’ payroll stubs
• Bank statements for the last 3 months
• Names, addresses, account numbers, balances and monthly payments of outstanding loans or revolving credit accounts
• If you are self employed, tax returns for the last 2 years
• Names, addresses, & account numbers for savings or investment accounts
• If you are applying for a VA loan, your DD214
• A signed copy of your contract for the home


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Step 6
The Construction Period

Construction of your home cannot begin until Padilla Homes has received a "take out" letter from your lender — this can take a few weeks. Once that letter has been received, your home will be completed within 90 to 120 days.

Padilla Homes will contact you upon receipt of the take out letter, and ask that you come into our show room and make your color and material selections for cabinets, ceramic tile, carpet, counter tops, and other finish materials.  You will be given vouchers for electrical fixtures and kitchen appliances at this time, and a list of acceptable vendors where you can make these selections. If you select lighting fixtures or kitchen appliances which exceed your allowance the vendor will bill you directly for the overage.

Your selections must all be made with the first four weeks of the construction period to avoid delays.


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Step 7
Closing — Warranty

When the home has passed the City of El Paso's final inspection, and any inspection required by the VA, FHA, or your contract, it is ready for closing within the time and under the terms agreed to in your contract.
You will do a walk through inspection with the builder or his representative prior to the closing and compile a list of details you think need attention. Padilla Homes will take care of the items on this first "punch list" promptly, and ask you to initial each item which has been completed.

You will need to take a certified check to the Title Company at closing for your down payment and closing costs.

Padilla Homes commits to a builder's warranty for one full year following closing, and provides a 2-10 Home Buyer's Warranty which covers structural defects until the home is 10 years old. You will receive a manual from the 2-10 Home Buyer's Warranty company following the closing which details the coverage provided. Read the 2-10 manual carefully to understand what is covered as a structural defect and what you need to do to maintain your home. Send in all your kitchen appliance warranty cards, and review the appliance and systems manuals for operation and maintenance advise.
Preliminary agreement

Sometimes a special situation arises. You've fallen in love with a particular lot, but your existing home isn't sold yet, or you want us to develop custom plans for you.  Padilla Homes has developed a Preliminary Agreement for just such occasions. This contract is used to reserve a lot for up to 30 days, or to draw plans that meet your satisfaction.  It provides for the builder to be reimbursed for specific, actual, out of pocket expenses for lot deposits or drawings.  If, at the end of a specified time, you decide not to sign a contract for the proposed home, any unused deposit will be returned.

Change Orders
Any changes or upgrades not covered by the original contract must be paid for in advance.  If you decide to make changes, it's best to make them early in the building process to avoid being charged for demolition or delays.


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