3 Reasons Why Financing A Brand New Home Is Often Easier

If you are looking to purchase a home, you could be worried about how difficult it will be for you to find financing for your purchase. Many people find that financing a brand new home is actually easier than financing an older home, although this is not always true. If you're wondering why it is sometimes easier to finance a brand new home, consider these reasons.

1. The Builder May Help

In many cases, home buyers are on their own when it comes time to finding a mortgage company and securing their own new home purchase financing. However, many new home builders actually already have working relationships with different lenders. In fact, some of the larger home building companies even have their own lenders that you can work with. With the help of the builder of your new home, you may be able to find financing a lot easier. Plus, you will probably appreciate not having to go through the process all on your own.

2. Inspections and Surveys Might Have Already Been Done

Many lenders require home buyers to have inspections and surveys of various types done to homes and properties before offering final financing. If you are buying a brand new home, there is a good chance that these things have already been done recently, so you might not have to do them again. This saves time and money and can help you get your home loan closed a lot more quickly.

3. Determining the Home's Value Should Be Easier

Your mortgage company will probably want to make sure that the home is actually worth what you are paying for it before approving the loan. It can sometimes to be tough to calculate or prove an older home's value. It might have had a lot of work done to it over the years, or its full condition might be unknown. When you purchase a brand new home, on the other hand, you are purchasing a home that probably does not have any issues that could impact its value. Because it hasn't decreased or increased in value over the years or had major renovations done since it was built, it's a lot easier to determine how much it is worth. In fact, there might be other brand new homes in your area that are very similar to it in size, floor plan, and materials. It will be easier for you to make sure that the pricing for the home is fair, and it's also easier for your lender to determine whether or not the brand new home is worth its price tag.

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