top of page

Utah Real Estate: New Builds

Introduction

You've probably heard the phrase, "New is not always best." That's certainly true when it comes to homes, especially if you're looking for a new build. The process of building a home from the ground up can be time-consuming and costly. And that's just one consideration when deciding whether or not you should buy a brand new home.


The Other Side of New

There are lots of reasons why you should buy a new build home. Let's take a look at them:

  • A new build home is built with the latest technology and design trends in mind. This means that your home will be much more energy efficient, as well as easy to update and maintain over time.

  • New homes are more likely to have been built with care, meaning they'll be structurally sound and better insulated than older homes.

  • New builds tend to have much larger plots than resale properties, especially in urban areas where space is at a premium. In addition, the contractors involved in constructing the property need access to their building site on-site which can be difficult when there are existing buildings nearby (especially when those buildings have residents). In contrast, many plots available for purchase are located within established communities that include roads or paths leading up until each plot so construction crews can easily access them without causing any disruption whatsoever!

Are you ready to buy?

  • Are you ready to buy?

If you are, then the first step is to get pre-approved by a lender. You may think this sounds obvious, but many people start their home search without a lender in place. This can lead to some stressful situations when it comes time for an offer acceptance and financing discussions.

A good lender will help guide you through all of the steps toward buying a home, from qualifying for a mortgage loan to closing on your new home. The process can be overwhelming at times, but having someone who understands the system and can explain it in clear language will make things much easier for you.


What it takes to get pre-approved

  • Get pre-approved for a mortgage.

  • Make sure you have enough money for a down payment.

  • Get your credit score checked. You should also look at recent credit reports to see if there’s anything that might hurt your chances of getting approved, such as late payments or accounts in collections. It’s also important to make sure all of the information on your applications is correct and up-to-date, including contact information for references, employment details and financial history (including any bankruptcy).

  • Make sure everything is in order: The documents needed to buy a home vary from state to state — but even if they don't ask for any specific paperwork upfront when you apply for preapproval, it's still important to make sure everything is ready before starting the application process so that nothing gets overlooked later on down the road! Some examples include tax returns (both federal and state), W2s or 1099s from work, proof of Social Security benefits or disability support payments received each month by mail; as well as proof of insurance coverage through health care providers like Blue Cross Blue Shield Of Utah Insurance Company offering plans throughout Salt Lake City metropolitan area areas nearby surrounding suburbs cities townships suburbs villages communities hamlets farmlands rural areas towns crossroads settlements

On the hunt for a new home

When you’re ready, start looking at new builds. You may not find what you want in the first few homes that interest you, but don’t give up! If a builder has built in your area before and isn’t currently working on any projects there, ask them if they have any plans for the future. Ask them if they would consider building something similar to what one of their previous properties would have been like if it were newer and updated with today's technology/home automation standards/etcetera.

If none of these options work out for you or if everything seems too expensive compared to other options in town (or on the Internet), then maybe it's time to look at some older properties instead. This is especially helpful when trying to decide whether or not it's worth taking over an existing mortgage with a friend who wants nothing more than their name on paper as well as potential legal issues related thereto (because let's face it: even though construction loans are great because they lower down payments significantly enough where most people never see them again after closing day happens once every five years or so...).


How to afford a down payment

  • Get pre-approved. Before you even think about looking at a house, it's a good idea to talk with your lender about getting pre-approved for a mortgage. This gives you an idea of what kind of house you can afford and lets the seller know that you're serious about buying their home. You'll also need to get pre-approved before making an offer on a particular home, so this step is key in moving forward with the process!

  • Use down payment assistance programs (if applicable). Many state government agencies offer programs that help low-income homeowners make their first down payment on their new homes. These programs are designed to encourage new home ownership by providing grants or interest rate reductions for qualified buyers—you may even have access to one if your employer offers an employee benefit package! Check out these helpful resources from HUD and FHA for more information: https://www.huduser.gov/portal/homeownership/downpayment_assistance_programs

  • Save for the down payment yourself (or ask friends and family members). If saving up enough cash isn't possible right now—or if there aren't any programs available in your area—it's still possible to save up money over time so that you can make that all important down payment when it comes time! You could set aside some extra money each month using apps like Digit or Acorns; use rewards points earned through credit card usage; or even try putting coins into jars saved under beds or behind couch cushions! Just remember: every little bit helps when trying save up enough cash

What is PMI?

What is PMI?

PMI stands for private mortgage insurance, which protects the lender in case you default on your loan. It's typically required when the down payment is less than 20% of the purchase price. Typically, if you pay more than 20% of the home's cost upfront, then PMI isn't required—although some lenders may require it even with a good down payment. If you have less than 20% equity in your home and choose to take out a loan at an interest rate high enough for them to charge PMI anyway (often around 6%), then their payments will include not just their monthly mortgage payments but also monthly premiums toward paying off this debt insurance over time.

Some people don't like having to pay extra money each month just because they can't save up more cash before buying their house; however, others feel that paying extra now will save them from being burdened by debt later on in life (when they're older) or prevent them from being stuck living in an "upside-down" situation where they owe more on their house than its worth (more info here). One thing we do know is this: Paying off mortgage insurance premiums ahead of schedule doesn't actually mean anything until after all those years are up—and even then there may be other fees associated with "escaping" an existing loan before its term ends!


Don't jump in without a net!

PMI is a good thing. It's an insurance payment for your loan, and it protects you against defaulting on your mortgage. If you purchase a home with less than 20% down, the lender will require PMI on your loan in order to protect themselves from potential losses if you cannot pay off the loan.

If you've never been approved before, or if it has been a long time since your last approval (particularly if there have been any changes in income or employment), applying for another mortgage can be stressful and confusing. However, with proper information and preparation ahead of time - along with patience during the application process - successfully obtaining an approval is possible!

A pre-approval letter gives you an advantage over other buyers because lenders are required by law to give this document only when they believe they'll approve someone's request for credit within 30 days of receiving all necessary documentation. This means that lenders know who's serious about buying their house because they're willing to go through all this trouble (and expense) upfront! That makes getting into bidding wars really easy once word gets out about how much money people have available at closing time."


Our team can help you find the right home for your needs

Our team is experienced and knowledgeable. We have a wide variety of homes for sale in Utah, including new builds, resales, and foreclosures. Our agents will help you find the right home for your needs. They are honest and trustworthy, professional, friendly and helpful through the entire process from start to finish!


Conclusion

To sum up, buying a new home is a big investment and it can be hard to know if you’re making the right choice. Our team is here to help! We want our clients to feel confident in their purchase and we are more than happy to answer any questions along the way.

3 views0 comments

Comments


bottom of page