NEW CONSTRUCTION LOANS
Benefits of Using New Construction Loans
Building your own home, or buying new construction has many benefits for you and your family:
- Customized floor plan to suit your needs
- Additional space such as a third garage, large walk-in closets, family room, home office
- New energy saving materials to keep your home cooler in the summer and warmer in the winter
- Healthier environment with lead-free and asbestos-free materials.
How Is Buying a Newly Constructed Home Different Than Buying An Existing Home?
- No unexpected problems - When you purchase a used home, you never know what kinds of problems you could be facing after you move in. The nice thing about a new home is that the possibility of a problem is slim and, if you have a warranty, the warranty will cover it.
- Pick your own upgrades - With new home construction loans, you can build a home that has the upgrades that you want. Add a walk-in closet, turn a room into a home theater, or add a Jacuzzi.
- Longer wait to move in - It will take a little longer for you to move into your new home because of small issues that come up (such as finishing up cabinet installation or painting). An existing home is move-in ready.
- Incentives from the builder - Many builders offer incentives such as paying for your closing costs, offering special interest rates, or buying points to bring your mortgage payment down.
- More documentation for construction -New construction requires a large amount of paperwork to make sure that everything is in its proper place.
Loan Options for Newly Constructed Homes
New construction loans are typically adjustable rate mortgages (ARMs). ARM Loans let you lock in an interest rate while your new home is being built. Absolute Mortgage offers the best adjustable mortgage rates in the nation and can help you through every step of the loan process.
Adjustable Rate Mortgages protect you if the interest rate goes up before the home is finished and you have closed on it. In addition, some lenders let you take advantage of a float down to a lower interest rate for up to 60 days after you close on your new house.
Things to Consider When Selecting a Builder
- Does the builder have a valid license? Check with your state's licensing board to make sure the builder's license is valid and never just take the builder's word for it.
- Does the builder have good reviews from previous or current homeowners? There are many resources to check reviews of a builder or contractor. A few websites include Angies List, Service Magic, and the Better Business Bureau.
- Bonded and insured - ask for proof that the builder is bonded and insured and then validate those proofs
- References - ask for references and then contact each reference on the list. Make sure that you put together a list of questions before speaking with the reference, such as quality of work, any problems that arose, and the length of time it took for the house to be built.
New Construction Loan Rates
Absolute Mortgage has the lowest new construction loan rates in the industry with 14 years of experience to help you find the right mortgage for your financial situation. Currently we serve 23 states and by the end of 2012, we will be servicing all U.S. states.
We currently provide home loans in the following states: Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, NewHampshire, New Jersey, Oklahoma, Oregon, Pennsylvania, RhodeIsland, Tennessee, Vermont, and Virginia.
Our clients know that we will do everything we can to make the mortgage process as painless as possible. Below is an actual customer review. Click here to read the testimonial and others.
We "... have the best processing team I have ever seen!"
according to Cheri W.