Understanding the

Home-Buying Process

If you are considering building a new home, you probably have

a myriad of questions you might be asking yourself regarding

what goes into the actual home-buying process.

Maintaining Good Credit

• Lenders take a big risk when they offer borrowers

huge sums of money for new-home

construction. When a potential home-buyer has a

good credit score and history, it sends a positive,

more reassuring message to lenders concerning

that person’s level of responsibility, tenacity and

determination.

Establishing Affordability

• Make financial room for those important things in

your life that will be with you for a number of years

to come.

• Consider income and Lifestyle changes.

• Consider Children in the future.

Finding a Lender

• Contact a bank or credit union.

• If you have an existing account at a branch ask

them about their loan options.

Becoming Pre-Approved

• Pre-qualified: Being pre-qualified for a loan simply means the prospective home-buyer has supplied some basic, yet pertinent, information to the lender including debt, income and assets.

• Pre-approved: Being pre-approved for a loan means much more detailed financial information is given to a lender. An exhaustive mortgage application will be completed and a scrutinized financial background check will ensue.

• Once you’re pre-approved the process of finding the home of your dreams can begin.

Choosing Your Home

• Weigh every advantage and disadvantage of

different home styles your builder will share with

you. You want your home to accommodate you,

not the other way around. And no matter how

lovely a home might be, if it doesn’t fit your

particular lifestyle, you will be disappointed in the

long run.

Choosing the Best Builder

• A builder’s experience, character and attention-to-detail should be at the top of one’s search list as it applies to narrowing down the best home builder in your area.

• Is The Homebuilder Environmentally Responsible?

• Does The Homebuilder Offer an Existing Inventory of Homes?

• Does The Homebuilder Emphasize Quality and Affordability?

• Does The Homebuilder Promote a Positive Connection with the Buyer?

Asking the Builder about

Financing Options

• Some new-home developers can provide ‘in-house’ mortgage or financing options which can offer more lending choices for the buyer. Home builders have the option of partnering with preferred lenders; and as a result, lower interest rates and zero closing costs are not uncommon

• Lenders who represent new-home communities are very familiar with the builder, the sales personnel, the policies and the requirements that go into new-home construction.

Buying Title Insurance

• Title insurance for the new-home buyer protects

the homeowner from any possible ownership

issues regarding the land, upon which, the new

home was built. Buyers want to have peace of

mind knowing their land was properly subdivided

and that their home is situated on the correctly-

identified lot.

Doing the Final Walk-

Through

• Prior to the Closing, the buyers should do a final

walk-through of their soon-to-be new home. This

is a proactive measure to ensure that all the

appliances, lighting fixtures, HVAC system etc. are

in expected working order.

Closing on the Loan

• Several weeks before closing, contact the escrow

agent or your attorney to make sure you have all

the required papers for the final meeting. Items

such as a valid photo ID, certified funds, any

divorce orders (if applicable), a copy of

homeowner’s insurance etc. will be

required. Allow yourself plenty of time before

closing to have everything readily available.