There’s more to buying a new home than liking what you see and placing an offer. Before signing on the dotted line, there are some things you need to consider. So what do you need to know before buying a new construction home? Keep reading to find out.
Everything you Need to Know, Before Buying a New Home Checklist
Set a Budget
First things first, decide what your budget is by weighing your expenses against your income. If your debt is half of your income, then you might have to sort out your finances first before you buy a home.
After all, there’s no point in buying a house if you won’t be able to enjoy living in it. You should be able to maintain the property and save for unexpected expenses or that really cute furniture. That’s why planning out your finances is important.
Put Enough Money Down
How much you manage to put as a down payment will determine just how good of a deal you can get. If you’re looking to secure low-interest rates, lower monthly fees and enjoy more borrowing power in the future, then you’re better off making a significant down payment.
Putting down a fifth of the loan will show the lender that you’re serious and you’ll be considered less likely to default on your loan. A 20% down payment also means that you don’t have to pay for private mortgage insurance (PMI), which is great news because who wants another expense on top of everything you’re paying for to buy a house?
Mortgage pre-approval can prove useful in more ways than one on the path to purchasing a home. It can help you close your loan faster, find out how big of a loan you qualify for, and even show how credit-worthy you actually are.
Find an Agent
Now is the time for you to get a real estate agent. An agent won’t just save you time and negotiate the deal, but you’ll get much-needed guidance and support as well.
You should hire someone who knows their way around the market and has a professional network within the real estate industry. They’ll save you stress and might even rescue you from any closing issues that may arise. You’ll find that real estate agents are uniquely motivated to find you a home and they’re willing to go the extra mile to make you happy.
Finding the Right Match
There are lots of things to think about when purchasing a new Daybreak home. After all your home is a big investment financially and emotionally. A home becomes the central hub of your life. It is where you will rock your baby to sleep at night. Watch the big game with friends. And relax in front of the fireplace after a long day at work.
Master-planned communities, like Daybreak located in South Jordan, Utah, make it easier than ever to purchase a home. You can also take a virtual tour of the home before you visit, which is great news for anyone shopping for a home out of state.
Have the House Checked Out
Driving past the house just isn’t enough. There’s a lot you can miss even if you take a tour around the yard. You need a professional home inspection to make sure you know the home inside and out. A home inspection is an investment that can help you avoid unwanted surprises.
Even with a new build, you’re well within your rights to inspect the property throughout the building process if you wish.
Your lender will require quite a bit of paperwork before even considering your loan application. Having all your documentation sorted before applying for the loan is crucial to moving the buying process along. It can get a little exhausting to figure out exactly what the lender will need from you, but there are certain documents that are likely to be needed, and these are:
· Some form of identification; your social security card or passport should do the trick
· Proof that you have the down payment
· Bank statements from the past two years
· Tax returns from the past two years
· Proof of income for the past two months
Even after closing, there are some documents you can’t afford to lose. If you don’t store these things in a safe place, you could bear the consequence at some point in the future. Some of the paperwork you need to tuck away safely include the purchase agreement and any home insurance policies.
‘The Best Place to Buy a Home Right Now
If you’re looking to move to Utah, Daybreak should be considered. Daybreak consistently makes the list of top-selling communities in the country. This master-planned community is equal parts peaceful, stunning, and exciting. The people are trendy but down-to-earth, and all types of lifestyles are catered for.
Schools in Daybreak are strategically built to make sure your kids get there on time and the entire community is strategically located in close proximity to major companies to make sure that you get to work on time. It’s everything a neighborhood should have but thoughtfully designed to account for future growth.
Basically, Daybreak is Utah’s haven.