Do you pay a deposit on a new construction home in Kansas City?

Yes, and it works differently than earnest money. Most local Kansas City builders land somewhere around 5–8% of the purchase price, though it varies by builder and by whether the home is finished, under construction, or a build job from dirt. The larger regional and national builders can go as low as 1%, but they're a small share of this market. Wherever it lands, the deposit is paid directly to the builder rather than held by a title company — and it's credited against your purchase price at closing rather than returned to you.

Are builder deposits refundable?

Assume not. There's usually a short window at the start tied to getting a loan preapproval or commitment, and inside that window the deal can unwind. But that window isn't protection against financing falling through later — once it closes the contingency is generally waived, and many contracts say outright that they aren't contingent on the loan actually funding. Beyond that, a sale or close contingency realistically only exists on a finished home, or occasionally a spec far enough along that the builder can see the finish line — not on a build job from dirt. What you generally won't get either way is an inspection or appraisal contingency, though to be fair those aren't automatic on a resale either. And even when something does let you out, expect deductions for what the builder already spent.

Do I need a construction loan to buy a new construction home?

Most buyers here don't. If you're buying a move-in ready home, a spec under construction, or a build job the builder is financing, you close with a normal mortgage or cash once the home is done. You only need construction financing when you're funding the build yourself — cash draws or a construction-to-permanent loan — and in Kansas City that's the less common path.

When is the down payment due on a new construction home?

It depends on who's financing the build. With builder financing, which is most of what I see in Kansas City, your down payment is due at closing after the home is complete — same as buying resale. With a construction-to-permanent loan it's due up front at the one-time close, before construction starts, and the builder may still want a separate deposit on top of it.

How much is the deposit on a new build in Kansas City?

Plan on somewhere around 5–8% with most local builders — on a $650,000 build job, 5% is $32,500 written to the builder at contract. Treat that as a range, not a rule: it varies by builder more than by anything else, and it moves with construction status too, since a finished home, a home under construction, and a build job from dirt won't be quoted the same number. It's credited against your purchase price at closing, so it isn't an extra cost on top of the home — but you don't get it back either, and it has to be liquid at contract.

Should I use the builder's preferred lender?

Most Kansas City builders don't have one. This is a local builder market, and preferred-lender programs are mostly a regional or national builder thing. If the builder you're working with does have one, the credit is real money and worth taking seriously — get one outside quote and compare the whole deal rather than any single line of it. Some of the larger builders own the mortgage company outright; Summit Homes discloses exactly that about Silverton Mortgage on its own financing page.

Can I buy a new construction home contingent on selling my house?

Sometimes, and it depends on the builder and on what you're buying. Contingencies are realistic mainly on move-in ready or completed homes. A close contingency, where your sale is already under contract, is far easier to get than a sale contingency where you haven't listed yet. Whatever you agree to, get it in writing. That's what protects the deposit.

What happens if the builder pushes back the closing date?

Plan on it being possible. Close dates on homes under construction can move, and that matters most if you're timing the sale of your current home around it. List roughly 60–90 days before estimated completion, build slack into that date, and keep a backup housing plan — a rent-back or a short-term rental — so a shifted date costs you inconvenience instead of money.

What happens if a new construction home appraises for less than the contract price?

You cover the difference in cash at closing, unless you negotiated an appraisal contingency. A lender only lends against the appraised value, so a gap comes out of your pocket on top of your down payment. What usually creates that gap is upgrades: change orders and allowance overages don't necessarily raise the appraised value by what you spent on them, so the more you add during the build, the more likely your price outruns the appraisal. Worth saying that it hasn't been biting lately — three of my recent closings appraised over the contract price, by $4,000, $6,000 and $23,100. That's three deals, not a guarantee.

Do you pay anything during construction on a new build?

Not loan payments, if the builder is financing the build — that's the whole point of builder financing. But change orders and overages can absolutely come due before closing, and every builder handles them differently. Some want the full cost in cash the moment you approve the change, some want a percentage up front, some send you straight to the vendor, and some add it to the purchase price and finance it at closing. Ask which one applies before you start making selections.

Know Every Dollar Before You Sign

No rate quotes and no lender recommendations. Just how the money moves on a new build here.

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