We’re sharing terms and descriptions that will help you easily navigate the purchase and process of new construction home buying! It’s our job to be sure you fully understand each step to owning your new Elite Home so don’t hesitate to reach out to your sales counselors for more explanation. Here are a few of the buzzwords you might be hearing:
Adjustable Rate: Known as an ARM. A mortgage that offers a lower initial rate and lower payments, but eventually adjusts and fluctuates along with interest rates for the life of the loan.
Fixed Rate: A mortgage with an interest rate that is locked in and cannot change over the term of the loan. Protects you as the buyer from increasing mortgage payments.
Home Inspection: A limited examination of the condition of a home, performed before the home is sold. An inspector prepares and delivers a report of findings to the client. The client uses that knowledge to make informed decisions about the pending real estate purchase.
Home Owners Association/HOA: The rules committee within certain communities (usually condos/townhomes) that regulates everything from landscaping and snow removal to deciding who gets to swim in the pool. Residents are obligated to pay monthly fees to the HOA for these services.
Homeowners Insurance: A form of risk management; a means of protection from financial loss. May include homeowners, flood, or replacement. Know what’s covered and what isn’t in case of accidents, catastrophe or loss.
Maintenance: Although a new home requires much less maintenance than purchasing used, there are still things that require ongoing upkeep. Once you buy a home, you are responsible for keeping it operating. Requires knowledge of the home’s systems, which we will walk you through!
Pre-Approval: Step one when beginning the house hunt. Talk to a mortgage professional or two about getting your finances in order and getting pre-approved for a loan – before you fall in love with a house you can’t afford.
Private Mortgage Insurance/PMI: Insurance that protects the lender in the event that the buyer defaults on their loan. Required if the buyer does not put down 20 percent on a home.
Warranties: Peace-of-mind in case something happens. In a new home, they may cover structure, materials or systems. Check your warranties to see what’s covered – and what isn’t.