Last time, we discussed the ins and outs of purchasing a new construction home, so today we’ll touch base on the steps it takes to purchase an existing construction home, since the two processes are different.
1. Getting pre-approved. This is one area that is the same for both new and existing construction homes. We can recommend some great lenders whom we know and trust, have rates that are still very low, and who can let you know what programs are the best fit for you.
2. Down payment. There’s a persistent myth that suggests you need a 20% down payment in order to purchase a home, but that’s just not true. We have conventional buyers who purchase homes for as little as 3% down!
3. Closing costs. These are the fees you have to pay on top of your down payment when you purchase a property. Closing costs are typically 3% of the purchase price of the home.
4. Contingencies. When writing the offer for our buyers, we write certain contingencies into it that allow them to back out of the purchase agreement and get their earnest money back under certain circumstances. For example, if something were to happen like your financing fell through or something came up during the inspection, you’d be able to get your earnest money back.
5. Closing day. This is when we do our final walk-through and check off our inspection items to make sure the property is in the same condition as when you made the offer. This is also the day to bring your cashier’s check and ID to the title company, where you’ll sign the documents that secure your mortgage and give you ownership of the property. Once all is signed and finished, we’ll hand you the keys to your very own home.
If you have any questions about purchasing existing homes or need further clarification, don’t hesitate to reach out to us. We’d love to be your real estate experts.
