Building Your Future: Financing a New Home in Mantua

December 21st, 2023
how to finance a new home build

You may have noticed that the Dallas area real estate market is buzzing with activity. It’s a perfect time to invest in a new home—or to think about building your own! Sure, interest rates may be a bit higher today than they were a few years ago. However, they’re still low compared to historical averages, and many new homes are being built, especially in master-planned communities like Mantua. The best part? Many builders are offering some really attractive deals for those looking into how to finance a new home build. If you’re looking at financing a new home, now’s a great time to start your journey toward the home of your dreams, and we have some hot tips to help you get started!

Financing a new home vs. a new home build

What’s the difference? Financing a new home is something that most of us are familiar with, at least in theory. It usually means getting a mortgage from a lending institution to pay the seller’s asking price on a new-construction home, often in a master-planned community such as Mantua. When it comes to how to finance a new home build, though, things are a little different. For starters, you typically only put down what’s known as an “earnest money deposit,” which is often considerably less than a typical down payment. This means that you can continue to save while your new home is under construction, and you don’t go through closing until your home is nearly complete.

How to finance a new home build

Once you’ve put down your earnest money deposit, you can begin to work with mortgage lenders while your home is under construction. As your dream home is being built, you’ll work out the terms of your mortgage, which will begin once your home is already completed, or nearly so. This not only gives you time to plan your financing, it also means that you can save up more money for a bigger down payment, all while working with builders to line up the home you’ve always dreamed of. Of course, a bigger down payment means that you’ll ultimately be financing less, which means paying less interest over the life of your mortgage.

What You Should Know About Financing a New Home Build:

What to Expect – As with any other mortgage, you’ll be expected to provide some information to begin the loan qualification process, including proof of income and employment, passing a credit check, and so on. Don’t be nervous, though. A credit check is an essential part of the loan process, but it’s not one that you need to be worried about. It’s simply a way for lenders to know what kinds of loans you qualify for. You may also be asked to provide other information on your financial picture, including information about assets that you already own and any existing debts you might have, such as credit card balances or car loans. Having this ready in advance will make the process go faster and help free up your attention to focus on your home plans.

What is Available – In the journey to your dream home, understanding your financing options can open doors to new possibilities. A variety of types of loans are available for financing new home builds, just as there are for buying move-in-ready homes. Assistance programs can help make homeownership more accessible. These include FHA loans for first-time home buyers or VA loans for those who have served in the military or who are still on active duty. USDA loans are designed for those buying homes in rural areas and often require no down payment. These are just a few of the loan types and assistance programs available. Once you have a solid picture of your financial situation, your best bet is to do some research into the types of loans and assistance programs that are available to you, thereby setting yourself on the road to an affordable home for you and your family.

Don’t Forget Builder Incentives – One of the advantages of building a new home for your family is the ability to work with the builders directly. Many builders also offer specific incentives, especially under certain circumstances. These incentives may be time-limited, only available to those who begin the process within a certain window, or tied to particular options offered by the builders. Sometimes, these incentives take the form of direct money, such as money to put toward closing costs or to buy down interest rates. Other times, they may come in the form of free appliances or other upgrades. Regardless of what form they take, builder incentives have the potential to represent massive savings on your total home purchase, so it’s important to shop around, stay informed, and ask questions of any builder you hope to work with.

These builder incentives are just one of the many reasons it’s so rewarding to work with seasoned, reputable builders such as David Weekley Homes, Highland Homes, Perry Homes, and Risland Homes. Here at Mantua, we love our builders, and we’ve made it easy for our future residents to work with them. We even provide a direct link to get in touch with our builders anytime. This will not only help to simplify your homebuying journey, but it will also help you to find the ideal builder to craft the perfect home for you and your family.

Financing a new home build has many benefits, and if you’re ready to start the process, we hope you’ll consider Mantua for your dream home. To learn more about our world-class builders and discover a life you’ve always dreamed of, contact us today and schedule a tour!