Should I get prequalified?
No. Pre Approved. There is a big difference between the two. PreApproval is the only one that will matter. Pre approval involves the lender seeing your tax returns, debts, income, investments, account statements and more.
Should I walk into a new home builder alone?
No. A Realtor should be with you. The guidance and benefits are many. Your realtor fee is included in the price of your new home. If you do not use a realtor you will pay the same price as if you do.
Who does the new home builders sales team work for?
Not you. The sales team works for the new home builder. And the new home builders sales team will do what is best for the home builder. There should be a clause in the contract that state it. The Realtor you hire will work for you to get the best transaction.
Is it ok to go to a new home builder alone and get a Realtor later on?
No. The home builder will not allow, or pay your Realtor at that point. The Realtor needs to walk in from the start.
Will the new home builder reduce the price by not using a realtor?
No. The new home builder will not reduce the price. You will only lose out and be at the mercy of the sales team.
Is it ok to sign the new home builders contract?
It is advised to send it to your real estate attorney for a lookover. Once you sign a contract there will be little a attorney can do for you.
Are all new home builders contracts the same?
No. Each builder will have their own contract.
Can a Realtor give tax advice?
No. A licenced accountant should be contacted. Always use the licensed specialist that is appropriate to the field. You would not go to a podiatrist(foot doctor) for concerns with your eyes.
Can a Realtor tell if I am qualified for a mortgage?
No. A licenced mortgage broker, bank or credit union should be contacted. Get PRE APPROVED. Again the specialist is required.
Should I go out to look at homes before getting Pre-approved?
No. You will be required by home sellers and home builders to be approved. Getting Pre-approved lets you know exactly what you can afford to buy.
I hear the new home builders have lenders what should I do?
This is true. New home builders all have lenders they prefer. You should still get preapproved with the lender of your choice. Depending on the home builders offer you can still use the new home builders lender
Do I have to use a new home builders lender?
No. You can use the lender you were approved with prior to your search or the New home builders. The sales team may push for their lender but it is not required.
Do the new home builders offer closing cost deals with their lender?
It is common. Each new home builder will have their own deals.
Do I need a Home Inspection with a New Home?
In short yes, but it’s never required. If the home is being built it is a good idea to have the inspector look at the components before the Drywall (Sheetrock, Gypsum Board). The Home Inspector can look to see if things are attached well. Also the plumbing, electrical and structure. Once the walls are up the inspector will not know if all is well behind them. Hew home builders typically have 1 or 2 building managers looking over 10 or 30 homes being built at once. Things are missed. There are also times when time quotas are causing the process to be rushed.