Terminologies You Should Understand Before Buying a Modular Home in Michigan
Knowing what the terms mean can help you better understand the process and gain an upper hand in negotiations when planning to buy or build a modular home in Michigan.
Base Price
It is the selling price of a modular home before any upgrades are added.
Close
It is the act of convincing a home buyer to sign the sales agreement. Some dealers want to close the sale on the buyer’s first visit. A consumer should never sign anything until they have researched at least 3 different dealers and shopped for financing.
Closer
An employee at a dealership whose exceptionally talented in persuasion and whose only job is to convince the home buyer to sign the sales agreement.
Consumer Deposit
Usually 5-10% of the modular home’s price that is paid before the home is order or at the time the contract is signed.
Equity
The ending value of the modular home after subtracting the payoff from the total amount financed.
Finance Charge
The interest and fees charged on a financed modular home.
Fixed Rate Mortgage
It is a loan with an interest rate that never changes. Your payments will be the same amount through the life of the loan.
Floor Planning or Flooring
The modular homes on a dealerships lot are owned by a bank or financial institution and not the dealer.
Gross Back End
Profit the dealership makes when a buyer finances and adds insurance to the payment plan. It is recommended that you keep insurance separate from financing.
HUD Code
Refers to the National Modular Home Construction and Safety Standards
Land Package
A manufactured home and land bought together, often financed in with one loan. Setup and installation are usually included.
Options /Features/Upgrades of Modular Home
Amenities added to the modular home at the buyers request. Also known as upgrades. Be weary of some upgrades.
PAC
The amount that a modular home dealer pays a contractor or crew to have the home transported and installed. Watch for markups on this amount.
Purchase Agreement
It is agreement detailing the terms and conditions of a modular home purchase. Do not sign this contract unless you understand everything completely and never sign anything that will be filled in later.
Site Improvements
Land modifications needed to prepare the space for a modular home to be placed.
Upside Down
When an owner owes more than the value of the modular home and this occurs often when buyers add extras to the financing such as insurance and taxes.
In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog
