Contract
The Contract phase acts like the go-between for brainstorming (Concept) and rolling up sleeves for construction (Construction). It's when the Hahn Homes team and Client come together and iron out all the tiny details in a contract. It's also the time when we as the Builder figure out all the prep work before we can start swinging hammers and pouring concrete.
Furthermore, the Building Construction Contract covers a range of details, including warranty terms, insurance and utility arrangements, lien rights, financing, and various other construction-related conditions. At Hahn Homes, we provide fixed-price contracts to streamline the financial side of the project, giving our clients the freedom to focus on the enjoyable parts of the building process, like selecting materials.
Allowances
In the fixed-price contract, there are allocated sections referred to as Allowances. These Allowances pertain to areas such as cabinetry, countertops, fixtures, flooring, and appliances etc., where Hahn Homes' customers are given the opportunity to make cosmetic selections according to their preferences.
Because these finishes play a significant role in each project, we dedicate considerable focus to crafting allowances during the pre-construction phase. Our aim is to ensure that these allowances aren't merely wishful thinking but instead represent realistic and substantial dollar values. This approach enables each customer to select their desired finishes within their budget constraints.
Financing
In our area, it's common practice for Hahn Homes customers to handle the purchase of their building site separately from the home building contract. This means they own the land before we start building. The building contract itself focuses on all the improvements we'll make to the site, including the house and any other changes needed. If customers decide to finance the construction through a bank, they usually go for a construction loan.
This loan covers both the land and the house, and during construction, they only need to pay interest, usually on a monthly basis. The amount they pay depends on how much work we've completed that month. Once the construction wraps up, the construction loan shifts into a regular mortgage, like a fixed-rate mortgage.
At Hahn Homes, we've teamed up with several experienced lenders from local and national banks, offering competitive rates and various loan programs to suit our customers' needs.
Final Steps Before Construction
After getting everything sorted with the plans, specs, and contract, it's time to hand them over to the lender to kick off the loan approval process. This usually takes about four weeks, including getting an appraisal. While that's happening, Hahn Homes will be doing their own pre-construction prep, which includes:
1
Finalization of structural construction plans
(if not done yet)
2
Clearing the site (if needed)
3
Submitting permit applications
4
Obtaining permits
It's typical for this procedure to also last 3-4 weeks, ensuring that once we have the loan commitment, we also have the construction permits ready to go.