There is no place like home! Building a new home is an exciting time – from the thrill of finding the perfect community to selecting a builder in alignment with your style and of course designing your dream home. And at the center of it all is the financing process – with many steps along the way. Here are some important tips for what to expect with the home buying financial process. Ask yourself these questions:
- How much can I realistically afford? Before you start looking for a new home, find out how much you can afford. Check out Nerd Wallet, input some key information and they’ll tell you how much a financial institution is likely to approve you for.
- What area of town matches my family’s lifestyle? Investigate several areas of town, learn about the area schools and don’t forget to time your drive to work during rush hour. Find a community that makes it easy for you to do the things that are important to your lifestyle (biking, restaurants, shopping, etc.)
Selecting a builder is central to your new home building experience. Talk to several builders, but ultimately select one that exemplifies the qualities that are most important to you. If you are passionate about green living, make sure your builder offers solar panels. Technologically advanced solar systems offer benefits, empower homeowners with the choice of clean, renewable energy.
With more and smarter electronics playing a central role in our daily lives be sure that your builder offers home automation. Lennar Home Automation has masterminded a solution, making it possible for virtually any appliance or device in your home to intelligently communicate with another. Lennar Home Automation provides you with home security, home automation, video monitoring, and home entertainment.
Your financial process should be seamless, take advantage of your builder’s mortgage programs. For example, part of the Lennar family, Eagle Home Mortgage is fully integrated into your home buying process and works with Lennar to make closing on your home easy. Here are some important numbers to keep in mind:
- You’ll be asked to put down an initial deposit to show your good faith in the intent to purchase the home; when the transaction of the sale is finalized, the earnest money goes toward your down payment.
- At closing you will provide a down payment of 3% to 20% of the sale price paid in cash at the time of the home purchase; the higher the down payment, the lower your monthly mortgage payments will be.
- Also at closing, you will pay closing costs which include the home inspection and appraisal fees, as well as several other charges, depending upon location, the property you buy, and the loan type you choose.
Where ever you decide to call home, enjoy the homebuilding process and check out Lennar’s Home Buying Guide to ensure you are financially prepared for your new home.