What are some of the reasons to buy a new construction home? Right now, historically low mortgage rates mean more buying power in our market; allowing buyers to purchase more than they may have previously been approved for. It is a great time to buy. MN Custom Homes frequently has Buyers who are obtaining loans taking advantage of these rates and we encourage you to speak with your real estate broker or our trusted real estate partners for recommendations. However, when exploring lenders and rates, it is important to do your research.
Not all lenders are equal
- Getting pre-approved first is key. With interest rates at historic lows, it is important to work with your lender on what you are most comfortable paying monthly and let them help calculate how much you are able to spend. You might be surprised what your purchasing power actually is, whether it’s higher or lower than your expectations.
- Yes, the lender is able to offer you a “good rate,” but it is important to work with a reputable lender who can guarantee that you can close on-time. If your lender is not able to close on time per your contract, you could be at risk of losing your Earnest Money Deposit which is typically 3%-5% of the purchase price as well as the termination of the contract meaning you will no longer be purchasing the home.
- Make sure you have all your ducks in a row with your financial documents. It can be a cumbersome process to get your financial documents to your lender – make sure to have all of your information before actively searching for a home to be best prepared to strike when you find the right one!
There will always be times in a market when it is the “best time to buy.” While this is true in regards to the market, it really is the “best time to buy” when you are financially and emotionally prepared and ready to purchase a new home. At MN Custom Homes we have many homes available for purchase now, as well as homes that have not yet been built or completed allowing you to prepare for a planned future purchase.
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