Thursday, February 19, 2009

What You Need to Know When Purchasing New Construction

Are you considering purchasing a new construction home? Many people searching for a home do not want to move into a used house and take on someone else's problem. Rather, they would prefer to start off new and to purchase a home that can be designed specifically to meet their taste and needs. If you are interested in purchasing a new construction home, however, there are a few things you need to know when it comes to getting the financing for the home of your dreams.

Getting Someone to Represent You

The first thing you need to know is that the builder's sales agent is there to help the builder, not to help you. Therefore, the sales agent may utilize high-pressure sales tactics in order to persuade you to sign a contract.

In order to make certain you are represented properly throughout the sales process, it is a good idea for you to hire a buyer's agent. In some cases, the seller will actually pick up the cost of hiring a buyer's agent for you. But, even if you have to pay the cost yourself, the fee will generally pay for itself in terms of the savings the agent is able to negotiate for you.

In addition to having someone negotiate a better price for you, a buyer's agent is also obligated to share the negatives and the positives of the deal with you. Therefore, you can be certain to obtain full disclosure when you hire a buyer's agent to represent you.

Obtaining a Lender

After you negotiate a deal with the builder, the company will likely have a lender that it will recommend to you. While this may benefit the builder because it will allow the builder to remain informed about the lending process, this is not necessarily the best deal for you as a buyer.

It is important for you to look into alternate lenders before you decide upon the lender that is right for you. In fact, your personal bank or credit union may actually be able to offer you an attractive deal. In addition, your buyer's agent should be able to provide you with some recommendations for potential lenders.

Regardless of how you learn about different potential lenders, be certain to take some time to interview each of them in order to find the one that can provide you with the best deal. Remember, in addition to finding a lender that will offer attractive rates, you need to feel comfortable working with the lender. You should also insist that the lender provide you with a Good Faith Estimate. Although a Good Faith Estimate is not a legal requirement, all reputable lenders will be willing to provide you with this estimate.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for . For more info and to order your credit report with FREE credit score please visit

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