Why Pre-Approval Should Always Be the First Step Toward New ConstructionAugust 18, 2017
Buying a home can be an intimidating endeavor involving plenty of research, considerations, and expenses. Home build loan pre-approval bypasses many of these headaches and puts you on the path to your dream home!
Here are a few reasons to consider being pre-approved for a home build loan:
1. Shows the Builder You’re Serious
Many builders find themselves compromising by juggling clients’ desires and budget. However familiar, the task is still difficult. Having pre-approval for a loan will provide guidelines for the builder. For example, a fixed budget, a financial plan, and a potentially flexible construction timeline.
These steps will save you and the contractor time, and frustration, in the weeks to come. It will also make room for possible hiccups down the road. If you would like the process to be positive, you should apply to be pre-approved for a home. You’ll be glad you did.
2. Increases Chances You Will Get First Pick on Competitive Lots
When you are pre-approved for a home-build loan, you may have more opportunities for land. For instance, finding or bidding on competitive lots for your new house. Then, you won’t be at the mercy of the market! You’ll have to go through fewer steps, and you’ll have a much lower risk for disappointment.
Having more control over your lot opens an array of possibilities. You can avoid lots near highways, for example. Being pre-approved may help you get the lot you need to have the life you want to have. Be sure to visit every lot offered to you, if possible, and consider the pros and cons of each. Your decision will be more well-informed by having this chance.
3. Gives You a Firmer Idea of Budget
By being pre-approved, you will have a financial target to aim for. Knowing what amount of money you will need to spend allows you to allocate funds as necessary.
Once you are pre-approved, you can work with your builder to create reasonable expectations for the next steps. This can also help you avoid home buyer’s remorse that may have been caused by going over budget or having unrealistic expectations.
4. Moves Through the Process Faster
Since you have been pre-approved, the building process may move more quickly. Especially as opposed to if you were paying out of pocket, or with any other payment plan.
You should still keep track of all your purchases and payments, and have a general plan for repaying the loan after the home is built. Then you will not have any surprises, hidden fees, or issues that cannot be fixed quickly and effectively.
Going through the process of an official pre-approval for a home loan for new construction may feel like an unnecessary step at first. However, with benefits like these, you’ll be glad you took the time to plan ahead.
If you’re interested in a custom home, contact Custom Home Group today. We’ll be glad to help you along the journey to your dream home!