|By PR Newswire||
|March 8, 2013 01:15 PM EST||
NEW YORK, March 8, 2013 /PRNewswire-iReach/ -- According to a recent article on real estate portal Realtypin.com, builders feel better about the housing market than they have in years – so they're breaking ground on more homes than they have in years! For you, it means you have a real shot at getting a sparkling new home, or even a home that's so new that it's still under construction.
As tempting as it may be to buy a home that's not even done yet (and, thus, being able to put some of your own finishing touches on it), buying a home that's still under construction works a little differently. Here's what you need to know:
- Your mortgage rate may change
If you've already been pre-approved, you'll have to talk to your lender to find out exactly how long your rate will be locked in. If your rate won't last as long as it will take to finish construction on the house, you'll likely have to deal with a totally different rate when it comes time to actually sign the paperwork. Depending on what interest rates do in the meantime, that could mean a big difference for your budget. After all, even a fraction of a percent in interest can affect your yearly payments by thousands of dollars!
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- Those finishing touches may cost you
If your main reason for buying an under-construction home is to put your own finishing touches on it, you had better find out how much they'll actually cost! Some builders make their upgrades affordable, while others nickel and dime you to death. So, before you get caught up in dreams of a custom home, make sure all of those custom finishes are within your budget.
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- Your maintenance fees may go up
This is a common problem in condo buildings. Typically, the builders will charge low maintenance fees, in order to entice buyers to pull the trigger before everything is finished. But once the builder is done and the facility is officially turned over to the condo association, those maintenance fees usually go up – and go up significantly. So, before you risk breaking your monthly budget, find out what's going to happen once everything is finished.
- You may live in a construction zone a lot longer than you planned
In some cases, builders run out of money before they finish the development they were working on. So, if you were one of the first people to move in, you could be stuck in a neighborhood full of half-finished homes! While this was more of a problem at the height of the recession, it's still something you need to look into before you buy.
Media Contact: James Paffrath RealtyPin.com, 1-(866) 960-8649, firstname.lastname@example.org
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