Building a new home comes with its own unique set of circumstances. The time between breaking ground on a new home and your big move can make a huge impact on your experience. Consider these two scenarios:
Imagine this: you have spent months working with a builder to build the home of your dreams. You get excited to decorate and open a new credit line with the big furniture store in town so you can upgrade your living room, dining room and master bedroom with all new furniture. Then you decide that a new car would look really good pulling into the garage of the home of your dreams, so you trade in your current vehicle.
Now you're 30 days out from closing and your loan officer calls. It's bad news. That extra credit line and new car payment pushed you over your debt-to-income ratio limit and your credit score dropped. You can't close on the house. Now you have a nice new car and a bunch of fancy furniture but nowhere to put it.
Now, imagine this: you've spent months working with a builder to create the home of your dreams. You stayed vigilant, watched your bank account, cooked instead of eating out, etc. You built up a good chunk of savings and were able to pay off a pesky credit card balance.
Now you're 30 days out from closing and your loan officer calls. It's good news! That hard work paid off, your credit score jumped several points and you can get a lower interest rate than previously thought. You are thrilled knowing your monthly payment is going to be lower than estimated and you may just have enough saved up to buy a new couch with cash a few months after you close on your home.
Purchasing new construction can take months longer to close when compared to purchasing an existing home. Use that time to your advantage, not your detriment. Here are a few tips to prevent new construction heartbreak:
With these tips and the support of your knowledgeable homebuying team here at Veterans United Home Loans you can set yourself up for a successful and rewarding new construction experience.
Midway through Fiscal Year 2021, the VA loan program is on pace to blow past last year's record-setting 1.2 million loans. See which cities are seeing the most growth compared to last year.