Buying a new home is a mix of excitement and anxiety. Finally being able to move into a new home that was designed specifically for you and your needs is thrilling but paying for this dream is another matter. Buying a new home is one of the most important financial decisions most people make in their lives and before you take the plunge it’s good to know a few tips that will help you make the best decision when you apply for a mortgage loan.
Get Multiple Quotes
While researching financial options may not be the most exciting task it is the most important one. Finding the right loan that will work within your budget is essential to being able to afford a new home and you don’t want to overlook this crucial step. Do not jump at the first offer you see. Protect yourself by researching and contacting lenders to compare the deals and options available to you. Before shopping for a mortgage loan it is a good idea to check your credit score and financial history to know what you have in your favor and if there is anything that may delay a loan being approved.
Most people who work in real estate strongly suggest new home buyers apply for a loan before building a new home. Having pre-approval will make your life a lot easier since the stress of wondering about financing will be taken care of. With pre-approval you eliminate last minute loan surprises and can experience an expedited closing process.
Make your Lot Security
If you own the land where your new home will be built you can use that as a security for a construction loan. With this in place you can then shop for a permanent mortgage on the new home. New home buyers do this to borrow against the value of the lot to finance construction. This reduced the need for a down payment on the construction loan since you are securing the loan.
For more information contact By Carrier