El Paso, Texas
THE PROCESS OF BUYING A NEW HOME
The process of buying a new home can be long, but that doesn’t mean it should be stressful. In fact, we strive to make your home buying experience exciting, fun, and ultimately worth every moment.
This is a little bit of what that process may look like.
THE INITIAL SEARCH
If you still haven’t found the home of your dreams, there are a few things you can do. First, you want to decide on an area you and your family want to live in based on nearby schools, attractions, and shopping centers. Pointe Homes builds houses in multiple areas throughout El Paso, so you may find one in your desired area.
Once you’ve decided on an area, you may come down to an open house or model home. We are available so you can see what our floor plans look like in real life (the designs themselves are available on our website) and what kind of features and amenities you can get. This is a great way to find the best house for you and your family.
FINANCING YOUR HOME
Homes tend to fall on the more expensive side of things. Luckily, depending on your credit score, there are many ways you may finance your home, including FHA loans mentioned above. You can also look into VA loans if you’re a veteran, state housing agency loans, and other associations who help people finance their homes. There are also conventional loans you may qualify for from trusted lenders. These are typically not insured by the government, so they may have tighter requirements for credit scores and other factors.
Home mortgage loans are dependant on your FICO credit score, loan to value ratio, and debt service coverage ratio. The loan to value ratio is calculated by dividing the amount being borrowed by the price of the home. Your debt service coverage ratio determines your ability to pay your mortgage by dividing your monthly net income by the mortgage payment amount per month. These factors will all contribute to your ability to finance your home.
Our homes at Pointe Homes come with a standard mortgage rate.
BUDGETING FOR A NEW HOME
Purchasing a new home is no small expense. Be sure to budget for it in advance, especially for the down payment and closing costs—two expenses that are often forgotten when the process begins. Also be sure to budget for new furniture and decor for your home.
If you plan to buy a new home within the next year or so, also start working on your credit. Pay off debts and loans, use your credit cards wisely, and do what you can to improve your score. If you plan to purchase a home within the next month, try not to take out any loans or apply for credit cards, because doing so can temporarily lower your score before it starts going up. Having a good credit score in advance will make the home buying process much easier and faster.
CREDIT SCORES & FINANCES
You’ve done it! You’ve finally found the home you want to raise your kids and grow old in, where you can make memories and share precious moments with those you love most. Now that you’ve decided on a home, you’ll be evaluated to see if you’re a good fit to buy the home you want—can you make your payments, are you a good fit for loans, etc. The real estate agent, seller, and lenders will evaluate your work and payment histories, your credit score, and other factors that can help them determine if you can purchase the home and follow through on the payments.
If you have a low credit score, there are different things you can do to still get the home. For one, if you’re worried about getting a loan for a down payment, you can always try to get an FHA loan. These loans are insured by the Federal Housing Administration and given out by qualified creditors. Because they are supported by the FHA, you may still qualify for one even with a credit score as low as 500.
Be sure to discuss your options with lenders and real estate agents so you don’t have to miss out on purchasing the home of your dreams.
The timeframe for this process is variable depending on the buyer and therefore can take up to one year. However, if you have a good credit score and are financially secure, you may be able to close a deal on a new home in under a week.
WHAT ABOUT WARRANTIES?
Our homes come with warranties so you can stay protected. Be sure to talk to your real estate agent about the warranties available to you.
CLOSING THE DEAL
After finding a way to finance your home and being approved as a viable buyer, you may close the deal on your new home. Your real estate agent will go over closing costs, signing the papers, and what your next steps will be.
FIND YOUR DREAM HOME TODAY!
Pointe Homes designs beautiful, modern homes in the El Paso area. Stop by one of our open houses or call today to learn more!