Couples Buying New Home Loan
Buying a home is one of the biggest investments you’ll ever make as a couple, so it pays to put some forethought into the buying process before making the leap to joint homeownership.
Acquiring a New Home: as a couple what do we need to know?
Acquiring a home is one of the biggest investments you’ll ever make as a couple, so it pays to put some forethought into the process before making the leap to joint homeownership. First, you’ll need to decide on whether to buy an existing house or construct a new one. Obviously there are some advantages that come with each option. A brand new house will be efficient in terms of energy consumption since the systems are new, you’ll incur lower costs in terms of repairs and maintenance and you’ll have an opportunity to customize many of its features to meet your needs and tastes. On the other hand, purchasing an already existing house reduces the burden and challenges which comes with searching for a new house.
If you settle on constructing a new house and want to put it up using a loan, there are some steps that you have to follow before you get a loan.
The first step involves determining how to obtain a home building loan. The steps are verysimilar to those when attempting to get approved for a mortgage. You will need to get the lender to get pre-approve, come up with specifications and also visit the area you have selected to build in as well as getting an experienced builder. There are further choices to make when you have opted to use this method of home ownership.
You have theoption of buying within a development or getting a custom home. If you decide to buy within a development, it means that a builder who builds multiple houses within a given development will sell you a home the same way as buying an existing one with the only difference being that you will apply for the loan when you have a contract with the builder. In some cases, the builder can offer financing toyou. If this is the case, make sure you compare the mortgage rates to ensure that you are getting a competitive offer.
If you opt to build a custom house, where you come up with own design, there are several options for you in terms of financing but there will be more steps to acquiring a home loan. You will need to arrange for construction loan financing options which are not as widely available as mortgages and home loans. This means that you will have to shop around. To get the best deal, applying as a couple is the ideal option. However it’s important to ensure that both have good credit ratings. If one of you has a bad credit score, the chances of securing the amount may be lower and the interest rate will be high. Therefore, for a couple acquiring a new home loan it is important to consider these factors, it makes the process easier.