6 ways to help new construction homebuyers
It's peak home buying season, and buyers are looking for options. New construction homes can be a great opportunity for buyers to get a home that is literally built to meet their needs. But the process can be complicated. Here are six ways you can help smooth the way.
1 Prequalification is neither preapproval nor a commitment to lend; borrower must submit additional information for review and approval.
2 Final loan approval is subject to satisfactory appraisal and title review and no change in borrower credit and financial condition. Preapproval is subject to terms and conditions and timely submission of required documentation; ask your Lending Specialist for details. Preapproval does not commit to the continued availability of the loan program. The interest rate shown in a preapproval is based on current market rates and is not locked. You may choose to lock an interest rate after we receive the complete and executed purchase contract. Borrower must submit purchase contract within 90 days of preapproval. If the rate at time of lock is higher, or a rate lock expires prior to funding, or for adjustable-rate loan programs when the index value rises, we must determine your ability to repay the loan at the higher rate, which may lower the loan amount or invalidate the pre-approval. Not available on all loan products. Not available on refinance loans.
3 A lock-in fee applies. A portion of the lock-in fee may be applied to closing costs at loan closing. If the loan does not close, the lock-in fee may be refunded in full when certain conditions are met and required documentation is timely provided. See the Interest Rate Lock-in Agreement, Confirmation, and Float Down Addendum for details. Time period of the initial rate lock may affect interest rate pricing. Extended rate lock options include 120 days, 180 days, 270 days and 360 days. Buyers should consult with their home builder to help them choose a reasonable closing date when construction will be completed. Float-down option is subject to time limits, other restrictions apply. Not available for all loan programs.
MAP3562093 | 04/2021