What You Didn't Know About Financing a New-Construction Home

The process of purchasing a home has always been clouded by the idea that it has to be a difficult, overwhelming process. Old scare tactics and stories from friends and family tell of expensive mortgages, credit score mishaps and getting denied a loan. Choosing the right partners to work with, like your home builder and your mortgage lender, can help ensure your process goes smoothly.

Homes by Taber aims to simplify the process of buying a new-construction home, which is why we’ve partnered with our trusted friends at Stride Mortgage to help our customers achieve their new home dream. Due to their proven track record of taking care of customers and working closely with us to ensure closings always happen on time, we’re confident in our lasting relationship with the team of loan officers at Stride. See what these experts had to say about financing a new-construction home. 

Local is always better when it comes to mortgage lenders

When asked the most important characteristic to look for when choosing a mortgage lender, a resounding answer from the Stride Mortgage team is that local is always better. Whether they’re the preferred lender of the builder you want to work with or you learn about them through a friend or family referral, it’s important to select a lender that’s local to where you’re building. 

Local lenders can offer an experience that national or online companies simply can’t live up to. Walking into a brick and mortar office, sitting down with a loan officer and having the option for in-person conversations is the best way to ensure you’re working with someone you can trust. When you work with a company like Stride Mortgage, you’re not calling a 1-800 number and meeting with a different person each time you have a question. Instead, you’re getting one-on-one attention from someone who’s dedicated to making the mortgage process as simple and stress-free as possible for you. 

Additionally, local lenders will be familiar with the exact specifications and laws surrounding the process in your area. For example, Oklahoma is what’s called an abstract state—doing real estate in an abstract state requires some additional steps, including meticulous research, planning and documentation. Abstracts can only be done by a company licensed within that specific state, so purchasing a home in Oklahoma already requires a local, knowledgeable mortgage lender like Stride Mortgage. Stride loan officers can help you pull the right appraisals and know which fees are necessary for your new-construction mortgage. Time after time, we’ve seen buyers get in a bind with their out of state lenders because their lenders don’t know the process. 

Apply even if you don’t think your credit is good enough

You’ve gathered all of the documentation you need to apply for a loan—W2s, tax returns, pay stubs, bank statements, identification, etc. Now you check out your credit score, and it’s not quite what you expected. At this point, many people give up on the process if they think their credit score is too low to be approved. However, Stride Mortgage highly recommends applying for that loan, anyway. 

One of the most common misconceptions in the process of securing a mortgage is that your credit score needs to be perfect before you ever submit your application. In reality, there’s two different things that can happen with a less-than-ideal credit score when you meet with a loan officer. 

First, you may find that your credit score isn’t as bad as you think it is. The housing market is constantly fluctuating, and a lot of people believe they’re worse off than they actually are. Additionally, there’s many different methods of calculating someone’s true credit score—and a loan officer can find the correct number that best represents your financial situation. 

Second, you’ll get the opportunity to work with a trusted professional who can establish a customized plan to help boost your credit score. Stride Mortgage has an internal module they use to predict where their clients’ scores can get, sometimes after only a few months of effort. Loan officers can provide a timeline and solutions, with suggestions to get your score in a better spot in no time. The module they use takes out the guesswork and allows you to know exactly what changes to make in order to get your score where it needs to be to get approved for a mortgage. 

Rest assured that Stride Mortgage will never spin your financials in a way that doesn’t benefit you. We’ve all heard the horror stories of people getting approved for loans they were never going to be able to afford in the long run—which is something you won’t experience at the hands of a trusted mortgage lender. 

Builder credit is simply a credit, no hidden fees

One of the biggest benefits of working with a builder’s preferred lender is the credit that comes along with trusting their recommendation. When you choose Stride Mortgage to finance your Homes by Taber build, you’ll be issued a $2,000 builder credit. That money can go directly toward your closing costs or to lower the interest rate of your loan. 

Many people wonder if their builder credit will somehow impact their mortgage with hidden fees, and the answer is no. It’s simply offered as a thanks from Stride Mortgage for selecting them as their lender for their Taber home. 

Don’t stress about selling your current home

The idea of building a new-construction home before selling your existing home scares some people out of the process—but with the right team on your side, there’s nothing to worry about. Timing is of the essence, but today’s market has made it easier than ever to sell a home within a specified time frame. 

Your pre-approval may be contingent upon the sale of your current home, but the team at Stride Mortgage will ensure everything is in place to work out. The only thing you really have to keep in mind is that your existing home must close on or before the closing date of your new home. 

In fact, a huge aspect of the Homes by Taber and Stride Mortgage partnership comes down to on-time closing. Meeting closing dates isn’t just a goal for either company—it’s the standard. This guaranteed closing date not only keeps our team on schedule, but also ensures that homeowners who are relying on their close date to move can get into their new home comfortably and plan the sale of their existing home accordingly.  

Biggest pieces of advice from experienced loan officers

The loan officers at Stride Mortgage wanted to leave future Homes by Taber homeowners with their three biggest pieces of advice, all of which loop back to what you’ve already read above. 

Get pre-qualified sooner rather than later.
Schedule a meeting face-to-face with your loan officer.
Work with a local loan officer that you trust, knowing they have your best interest at heart. 

We don’t partner with just any old mortgage company —while the name may seem new, the Homes by Taber team has been working with the same loan officers for years. They know our process inside and out, and we know theirs. This partnership and understanding takes extra steps and confusion out of the process for buyers, and gives them peace of mind that they’re working with the best lenders in the state. 

If you’re ready to take the next steps toward financing your future Homes by Taber house in Oklahoma City or Tulsa, get in contact with our team or our friends over at Stride Mortgage. We’ll be happy to guide you through the process and find the best options for your situation.