Strategic Points Group: Buying Homes: You snooze, you loose

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Many buyers are feeling the urgency of completing the "buyer-responsible" details of a new home purchase these days. Why? Because the market place waits for no one right now. If buyers drag their feet holding up their end of the bargain, builders can simply mail out letters of cancellation for non-compliance, raising their prices, and moving on to the next buyer.

Timing is everything
Markets can shift often from a buyer's to a seller's market and then back again. When it's a sellers market the builder may be calling all the shots, but the builder may also be under pressure by mounting construction, land acquisition and land hold costs. Buyers who take their time getting loan approvals, making final decisions for their options and upgrades, and forking over deposit monies may be finding themselves out of a deal and no longer in a position to talk up their new dream home. They could also be faced with a price hike for the same house if they decide to come back and try to buy it again. Are you still waiting for prices to go down or interest rates to dip again? Good luck. It's a little like the guy who was standing on the corner downtown passing out thousand dollar bills yesterday. What good was it if you weren't there to get one?

Get pre-approved
How can you avoid from getting one of those horrid letters dismissing you as a non-performing buyer? Perform! Tie down the price by writing a contract and stick to the agreement. If the reservation or purchase agreement calls for a 20-day window to accomplish your formal loan approval, shower the lender with all the documentation they want. Most builders require this milestone before they will even let you set foot in their design center. They don't want to spend time with buyers who are less than qualified or less than committed when the market is busy.

Making deadlines
Although the Design experience can be considered one of the more positive and personal aspects of a new home purchase, don't make so many special requests for customized item pricing. Try hard to choose from among the builder's many pre-priced options and upgrades if you can (A lot of builders won't even consider special custom requests these days). Builders are usually very busy, don't miss your appointments with them. You might have a tough time re-scheduling a time slot and still comply with the purchase agreement deadlines. Take some time off from work for this, if necessary.

Sitting back
It can be really nice getting all this done so early in the process. If you have "locked in" a purchase price in a market where you may have a chunk of equity on top of your down payment before the house is even complete; you also have the pleasure of sitting back, you have done your part. And you and your family can watch it all come together before your eyes--from a bare lot, to sticks in the air, to your kids playing in front lawn on your moving day. It just doesn't get a whole lot better than that.

Try these other related FAQ sections:


			New Mortgage

			Refinance

			Home Equity

			Debt Consolidation

			Construction

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