Delays in new construction also affect your financial situation, as explained in Step 2 below. Many systems are available for selected new buildings, for example. B the government-backed “Help to Buy” or “Part Exchange” loan program. Even if it is not a full mortgage application, you must still provide information to obtain an agreement in principle. Share Exchange is for those who currently own a home and want to move, and can be an ideal solution if you are looking for a new building property. Simply put, partial trading is trading in a house that you already own in exchange for a new one. The builder of the new property buys your existing property and the value is removed from the new property you are buying. This can be an ideal solution because it means that you don`t have to be part of a chain and could make the whole process much more fluid, although each home builder will have different criteria, and you can be offered much less than market value. The size of your contract can in principle be a useful indicator of how much you can borrow. You can use it to search for real estate in your price range.
Your future home can already be built, in the construction process, or an off-plan land inside a development. After booking your property with a booking fee, you usually have 28 days to exchange contracts after the purchase of a new building. Unfortunately, building the house can be marred by delays, so you should check with the developer to make sure your home is built on time. There are usually two dates to remember: Your first task when buying a new build should be to explore the developer. Some lenders may be less accommodating with loans for housing reserved for local people or affordable home buyers. Others are not allowed to provide credits for homes converted from industrial buildings, offices or municipal blocks. – directly from a lender (bank or real estate credit union) you don`t need to get an agreement in principle, but it can sometimes help if you`re hunting at home (see “How an IPA Can Help,” below). You don`t need to go through the full application process to get an agreement in principle. This will come later if you have accepted an offer on a property. Most lenders search for “hard” credit before offering you an agreement in principle that leaves traces in your credit file. That`s why it`s always worth hiring a mortgage advisor on your living conditions.
You have an in-depth knowledge of the market and present your options. They will also be able to talk to them about government programs such as Help to Buy, a type of loan designed to help homebuyers acquire a new building property.