How to Avoid Common Pitfalls When Buying a New Home

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Purchasing a new home can be both an emotional and time-consuming endeavor. Which type of new home to purchase will depend on your needs and budget. If you plan to sell your existing home while purchasing your new one, make sure to exchange the keys at the same time. While this is a luxury, it does have its drawbacks. Read on to learn how to avoid some common pitfalls and find the perfect home for you. Buying a new home is a rewarding experience, but it can be stressful, especially when you are moving from an older home to a new one.

First, make sure the builder you are considering has experience building in the area you'd like to live in. Ask for references, and visit completed homes. Always remember that a new home purchase is a long-term commitment, and your relationship with the builder should be as long-lasting as possible. If you are unsure, ask questions, such as about school ratings, homeowner's association fees, and taxes. Ask the builder if they are a member of Home Builders Association and how long they've been building. 

If the builder you are considering has a commission program, choose a Realtor with experience in that area. Realtors are an essential component of buying a new home, and a good one will be familiar with comparable homes in the neighborhood. A  La Jolla Realtor can also research prices in the neighborhood so that you can get the best deal possible. However, you should remember that a production builder will not reduce the price of a home without a Realtor. Therefore, make sure you choose a Realtor carefully and stick with them throughout the process.

Obtaining pre-approval from a mortgage lender is crucial. Most builders have their own lenders, or partner with a mortgage company. These connections may come with incentives for buyers using these connections. These incentives could include free upgrades or a closing-cost credit. Still, it's important to shop around for the best financing deals. Even if a builder offers an attractive financing deal, you may still be able to find a better deal from a La Jolla homes for sale lender that has long-standing relationships with the builder.

Before making an offer on a new home, it's important to get a credit report. A credit report is a written account of your financial history, including your employment history and previous addresses. Lenders use these reports to determine the amount of loans you'll be eligible for. Upon receiving your mortgage loan estimate, you'll need to communicate your Intent to Proceed (ITP) with the seller. It's important to get this process done quickly and avoid any unpleasant surprises later.

Hire a buyer's agent to negotiate on your behalf. A buyer's agent can represent the buyer's best interests, and you'll also get help negotiating the extras. A real estate agent can also help you find the right house and neighborhood for your needs. Lastly, builders often recommend a preferred mortgage lender to save money. Using a mortgage broker ensures that everyone involved is kept informed of what's happening throughout the process. Check out this post that has expounded on the topic: https://en.wikipedia.org/wiki/Real_estate_broker.