Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

What Should You Do Before You Buy A New Construction Home?

by Luke Fields

For so many people, it is a dream to buy a home and then be the first person to live in it. Buying a new construction home allows you to do exactly that. If you are thinking about buying a new construction home, there are a few factors to consider. The following is what you should know before you buy a new construction home.

Educate Yourself About the Process

First, you need to educate yourself about the buying process. What differentiates buying a new construction from buying a home that is already built? The more you learn now, the better you will understand the process.

Figure Out Financing

Next, you will figure out how to finance your new construction. Financing can be very different based on your new construction choice and the company you work with. You may need to figure out how to get a loan for a new construction rather than a mortgage.

Research the Home Builder

It is also important to educate yourself about the buyer you are considering. What common issues are people discussing in reference to this builder? Is this a builder with a good reputation? You should also discuss any concerns you have with the home builder.

Get Everything in Writing

Before you commit to buying a new construction, ensure that you have a contract in writing. What can you expect from the builder? What are your responsibilities? Discuss the contract with your real estate agent before you sign it, and make sure that you agree to all the conditions before you commit to buying this home.

Get an Inspection

Simply because a home is a new build does not mean that you should not get the home inspected. An inspection is a great way to help you gauge any problems that could become major issues in the future. It may even change your mind about buying this home.

Check Out the Guarantee

The home's builder may have guarantees and warranties on certain parts of the home construction. Make sure that you speak with a builder and a real estate professional about the potential warranties and guarantees.

Contact a Real Estate Professional

A real estate professional will help you buy a new home. They will listen to your specifications and ensure that you have the tools you need to make a good decision for your future.

Learn more and find new homes construction in your area today. 


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.