If you are thinking about buying a new home, you may need financing to make that dream a reality. New construction financing is an option for those who want to buy a home that is still under construction or has been recently built.
At IBP Financing we are experts in advising you on the acquisition of your new construction home, applying the best mortgage conditions, improving those offered by the creditor bank of the developer/builder finalist loan. We accompany you throughout the process and offer you professional advice individually and collectively of the real estate.
What is new construction financing?
New construction financing is a loan that is used to cover the costs of home construction, developer’s fees and taxes associated with the purchase of the home.
In Spain, financing for new construction usually has different conditions and requirements than financing for existing homes. For example, it is common for banks to require a larger down payment and shorter repayment terms.
Aspects to take into account about this type of financing
Before applying for financing for new construction, it is important that you take into account some aspects:
- Check the solvency of the developer. Make sure that the developer of the property is solvent and has a history of successful home construction. Also check if it has bank guarantees that guarantee the fulfillment of the agreed terms and qualities.
- Check the housing project. Be well informed about the characteristics of the house you are going to buy. Check the project of the house, the materials used and the finishes. If possible, visit the construction site to see the current state of construction.
- Study the mortgage conditions. As mentioned above, financing for new construction tends to have different conditions and requirements than financing for existing homes. It is important that you carefully study the mortgage conditions, repayment terms, fees, interest and monthly payment. Compare different options to find the one that best suits your needs.
Advantages of financing for new construction purchases
- Possibility of customization: When purchasing a home under construction, you have the possibility of customizing some aspects of the home, such as finishes or layout.
- New home: When buying a home under construction or recently built, you can be sure that all the materials and systems of the home are new and in good condition.
- Lower maintenance costs: As a new home, it is less likely to need repairs or maintenance soon.
Buying a home is an important investment and you should take the time necessary to make the best decision. If you have any doubts or need more information about financing for new construction, do not hesitate to contact us (link to form) so that we can advise you and help you find the option that best suits your needs and financial possibilities.
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