Buying A New Home & Land in a Seller’s Market
The Triangle’s current competitive seller’s market is presenting a multitude of challenges for buyers. Low inventory, competing bids & short due diligence periods can make the home buying process more than a headache for folks looking to invest in our area. If you’re thinking about purchasing a home, going with new construction has many benefits in this type of market. We’re going to walk you through how buying new, using an agent & preparing your finances can help you secure the house you’ve been looking for in your desired location!
Why Buy A New Home?
When it comes to purchasing new construction, you have two options. You can buy an existing home that’s just been built, which cuts down on both the waiting game and the guessing game. You’ll know exactly what you’re getting and when. Your other option is to have a custom home built to your specifications. This option allows you to customize your home’s look and layout in a way that meets your individual needs. There’s no remodeling or additional work to be done afterward – you move in, and start living in a home that has the latest construction and electrical technologies. This means you’re going to be living repair free for several years, and your energy bills will be lower because your home will be built with the most current and efficient materials. Another advantage to buying new is that when you’re buying in a seller’s market, existing homes may be selling well beyond listing price. So, building can actually be less expensive than purchasing a resale home!
Finding the Ideal Lot
If you’re looking for the perfect land lot for your future home, working with an agent can get you what you want faster and save you money in the process. The first benefit of working with an agent, specifically one who specializes in land, is their familiarity with the building process and what it takes to make a great home lot. An agent can get you to every area of the property despite rough conditions and has access to all the maps and zoning information you’ll want. They can also inform you about things like percolation, encumbrances, mineral rights, and issues to look for on the survey. Along with expertise in zoning, location, and site characteristics, a good agent can help you obtain loan financing.
Getting Your Finances Ready
Preparing to buy a home means preparing your finances. The first step is to determine what your budget is. Many lenders recommend keeping your total housing payment under 30 percent of your gross monthly income, however, they will take all of your bills and financial obligations into account before recommending a budget. The next step is to make sure you’re going to qualify for a loan. Lenders will typically issue buyers a pre-qualification letter before they go out shopping. Once a buyer goes under contract for a home, the lender then investigates their finances more thoroughly and determines whether they’ll be able to issues a loan before the day of closing. To avoid possible surprises, there are a few steps you can take before meeting with a lender for the first time. Check your credit, avoid making large purchases, and secure the cash you’ll need to close. A down payment of 20 percent will help you to avoid having to pay for mortgage insurance. However, if you’re not in a position to put that much down, lenders will inform you of other options that are ideal for your situation. Prepare to shop for the right mortgage and even the right lender. No loan officer is created equal and in this busy market, many of them may be crunched for time, so find one who fits your needs, offers you a great rate and has the flexibility to make sure your loan is done in time for closing.
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