HENRY WALKER
Buyer Resources: Everything You Need to Know Before You Buy
Buying a new construction home involves a different process than purchasing an existing property. This page is designed to help buyers at every stage, from early research to the steps just before closing, understand how financing works for new builds, what programs may be available, and how to set themselves up for a successful purchase.
Whether you are buying your first home or your third, new construction financing has specific considerations worth understanding before you start. The information here is a starting point. Our team and your lender can help you apply it to your situation. If you are ready to talk, reach out to us or call (801) 845-0444.
Understanding Financing for New Construction
One of the most important things to know early is that new construction financing works differently than a resale purchase. With a resale home, you apply for a loan, lock a rate, and close within a few weeks. With new construction, there is often a gap of several months between the time you sign a purchase agreement and the time the home is ready to close.
That gap affects rate lock strategy. Rates can move over a multi-month construction period, and not all lenders offer extended rate locks. Buyers have a few paths to consider:
Two-close financing involves a construction loan during the build and a separate permanent loan at closing. This approach gives buyers flexibility but involves two sets of closing costs.
One-close or construction-to-permanent financing converts from a construction loan to a permanent mortgage automatically at closing, which simplifies the process and reduces closing costs. The trade-off is that the interest rate is typically locked at the start, which can be an advantage or a disadvantage depending on where rates move during the build.
Lenders who specialize in new construction are familiar with builder timelines and how to structure financing around them. Working with a lender who has done this before can prevent complications that sometimes arise when buyers use lenders unfamiliar with the new construction process. Our team can connect you with lenders experienced in working with Henry Walker buyers specifically.
Preferred Lenders
Henry Walker Homes has partnered with The Young Heath Team to offer buyers experienced, dedicated lending support through the new construction process. The Young Heath Team specializes in a wide range of loan types and will guide you toward the option that fits your situation. They are familiar with our build timelines, understand how to structure rate lock agreements around construction schedules, and have worked with Henry Walker buyers directly.
The Young Heath Team handles conventional loans, FHA loans, VA loans, USDA loans, and new construction financing. No matter what your needs are, they will assess your situation and help you find the path that makes the most sense. Contact us to get a warm introduction to the team.
The Young Heath Team
Address
489 S Jordan Pkwy W Ste 320, South Jordan, UT 84095
Phone Number
801-888-3681
theyoungheathteam@ccm.com
Mortgage Calculator
Financing a home can feel overwhelming, but getting a clear picture of your monthly payment does not have to be. A mortgage calculator is one of the best early tools available to buyers. Use it to map out your budget based on loan amount, down payment, and interest rate, and experiment with different scenarios before you commit to a price range.
Henry Walker Homes recommends mortgagecalculator.org as a free, reliable resource. Plug in different loan amounts and rates to see how your monthly payment shifts, and use that information to set a realistic budget before you start touring communities.
Rate Buy Downs
A rate buy-down is a financing option that allows buyers to reduce their mortgage interest rate in exchange for an upfront payment at closing. The result is a lower monthly payment over the life of the loan, or for a defined introductory period in the case of a temporary buy-down. Henry Walker Homes offers rate buy-downs as part of our buyer incentive programs.
This is one of the more practical tools available for buyers who want to lower their monthly payment without simply putting more money down. The right structure depends on your loan type, how long you plan to stay in the home, and current rate conditions. Contact our team to learn more about what rate buydown options are currently available and what you may qualify for.
Contact our team to learn more about what rate buy-down options are currently available.
How to Prepare to Buy
Getting ready to buy a new construction home comes down to a few key areas. Taking these steps before you start touring communities puts you in a stronger position and helps the process move more smoothly.
Review Your Credit
Pull your credit report before you start the process. A higher credit score generally means better loan terms and a lower rate. If your score needs work, a lender can tell you exactly what to focus on and give you a realistic sense of how long improvement may take. Knowing your number early gives you time to act on it.
Get Pre-Approved
Getting pre-approved before you start touring communities tells you exactly what price range to focus on and signals to the sales team that you are a serious buyer. Pre-approval is based on verified income, assets, and credit, which makes it more meaningful than a pre-qualification. Most sellers and builders expect to see one before moving into contract.
Plan Your Down Payment
The amount you need for a down payment varies based on loan type. Conventional loans can require as little as three percent down, FHA loans require three-and-a-half percent, and VA loans may require no down payment for qualifying veterans. Down payment assistance programs can help cover part of this amount for qualifying buyers. Ask your lender about every option before assuming a number.
Build Your Savings Timeline
If you are still building savings, knowing how much you need and when you need it helps you set a realistic purchase timeline. Our team can give you a general sense of current pricing across active communities so you can plan accordingly. There is no reason to rush into a home purchase before you are financially ready, and our team will be straightforward with you about that.
Ready to start?
Ready to Take the Next Step?
The best next step is a conversation with our team and a visit to one of our active communities. We will walk you through what is currently available, explain the timeline for any homes you are interested in, and connect you with lenders who can help you get your financing in order.
If you are still early in your research, that is fine too. Our team is happy to answer questions without any pressure. The goal is to make sure you have the information you need to make the right decision, whether that is now or six months from now.
