Understanding the Home-Buying Process

1
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.

2
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
  persons level of responsibility, tenacity and
  determination.

3
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.

4
Finding a Lender

• Contact a bank or credit union.
• If you have an existing account at a branch ask
  them about their loan options.

5
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 youre pre-approved the process of finding
  the home of your dreams can begin.

6
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 doesnt fit your
  particular lifestyle, you will be disappointed in
  the long run.

7
Choosing the Best Builder

• A builders experience, character and
  attention-to-detail should be at the top of ones
  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?

8
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.

9
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.

10
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.

11
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
  homeowners insurance etc. will be required. 
  Allow yourself plenty of time before closing to
  have everything readily available.