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.

Tools & Resources

Whether you are wanting to purchase a new home, refinance your existing home, or simply just want some more information about our lenders, our buyer tools page will educate and offer more clarity on some of our process.

Preferred Lending

Building a home is the “American Dream” and every nail hammered, tile placed, and stair installed is part of bringing that dream to life. The Young Heath Team has partnered with Henry Walker Homes to offer innovative floor plans, personalization, and superbly constructed homes.

The Young Heath Team specializes in a wide range of loan types and will guide you toward the option that gets you into your dream home. No matter what your needs are, they will carefully assess your situation and make decisions that set you up for a brighter future.

LENDER NAME

The Young Heath Team

ADDRESS
489 S Jordan Pkwy W Ste 320,
South Jordan, UT 84095

CONTACT INFORMATION
801-888-3681
theyoungheathteam@ccm.com

Choose What Best Fits You

Loans for Home Buyers

The most popular home loan is a conventional loan, such as a 30-year or 15-year fixed loan.

Conventional Loans

A Conventional Loan is a type of home loan not backed by the government. With stable terms and competitive rates, it’s a popular option for buyers with strong credit and a solid financial history.

FHA Loans

An FHA Loan is a government-backed mortgage designed for low-to-moderate income buyers. With lower down payment requirements and flexible credit standards, it helps make homeownership more accessible.

USDA Loans

A USDA Loan is a government-backed mortgage for rural and suburban homebuyers. It offers zero down payment options and reduced mortgage insurance, making it ideal for qualifying low-to-moderate income families.

VA Loans

A VA Loan is a government-backed mortgage available to veterans, active-duty service members, and eligible spouses. It offers no down payment, no private mortgage insurance, and competitive interest rates.

How Big of a Home Loan Can I Afford?

Financing a home can feel overwhelming and intimidating, but Henry Walker Homes is here to help.

Our convenient online mortgage calculator is one of the best free home buyer tools available. This handy resource will help you map out your budget and your path to financing a new home, so you don’t have to do all the stressful guesswork. It will calculate your monthly loan payment based on how much you can put down on your new home and how much you decide to borrow. You can even experiment with different loan amounts and interest rates to see your options.

Rate Buy Downs

Looking to lower the interest rate on your mortgage loan? Henry Walker Homes strives to provide our buyers with the best deals possible, which is why we offer rate buy-downs. By taking this extra step, we help you lower your monthly payments and save money on the lifetime of your loan. Contact us today to learn more about the types of rate buy-downs we offer, and what you qualify for.

Free Mortgage Calculators

Mortgage Calculator

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?

Are You Ready?

It’s perfectly normal for first-time home buyers to feel nervous about taking on a mortgage and home ownership. Are you prepared for the responsibility? While there’s no clear checklist for whether or not you’re ready to apply for a home loan, there are a few promising signs to look for:

Still unsure? It’s always a good idea to talk to a trusted lender like The Young Heath Team to understand the intricacies of borrowing before you take the plunge. Experienced lending experts can give you an idea of how large of a loan you’ll qualify for and what type of interest rate you can expect.

When you’re really serious about financing a home, apply for preapproval from your designated lender. Preapprovals guarantee builders or sellers that you can afford the house, which can significantly streamline the home-buying process.