2024 New Construction Home Buying Guide – Step 2 of 5
Step two in our five-step New Construction Home Buying Guide is getting pre-qualified for a home loan. Pre-qualification is the process whereby a person wishing to purchase a home, describes their income, credit, debt, and assets to a lender to determine how much money may be borrowed. This initial step helps to establish a good faith estimate of how much money may be borrowed to purchase a home. The application can be completed quickly and easily online. Not computer literate or don’t have a computer? One of Coastal Loans’ Loan Originators can take your application over the phone.
A pre-qualification tells real estate agents or New Home Consultants affiliated with a homebuilder, just how much a homebuyer can afford. This data helps to save time allowing focus on home products that fit a family’s budget. This early lending conversation also allows time to gather key information. Is the borrower a first-time homebuyer? Is the borrower a veteran? What type of loan is best for this specific homebuyer? Pre-qualifications help to identify problem areas. Can debt be consolidated or eliminated? Is there an opportunity to improve a credit score? Pre-qualifications are not pre-approvals. A pre-approval requires all the documentation to support claims made on a pre-qualification application. Lastly, a pre-approval requires a hard-credit check.
Coastal Loans, LLC is Holiday Builders’ dedicated lending partner. Homebuyers are not required to use Coastal Loans and may use a lender of their choosing. Holiday Builders works with Coastal Loans and offers various incentives such as closing cost concessions. These incentives are good only for customers working with Coastal Loans. Additionally, Coastal Loans solely serves Holiday Builders’ customers therefore Coastal is very familiar with new construction home-building processes and timelines. Ready to get pre-qualified? Visit Coastal Loans online.