Have you ever played Chess, the game of life, before? Chess requires you to plan and think about strategy, it’s a game about making strong moves and sticking by them. Every decision made has an impact on the rest of your game. Well, the same can be said about buying a home; planning and thinking about strategy ahead of time is extremely important from the very beginning stages.

Economists expect the 2022 housing market to be a tad gentler to home buyers. However, the homeownership dream will still require strategy and stamina. Have no fear! We’ve got a few good tips to ensure your home buying plan is as strong as possible when you begin your home search.

#1: Best Opening Move is Getting Preapproved

Getting pre-approved by a lender should always be step number one.  Getting an upfront loan approval will help you beat out the competition, negotiate with power and let you know how much you can afford.

Benefits of Getting Pre-Approved

1. A pre-approval tells you the maximum amount you are qualified to borrower.

2. A pre-approval allows you to look for a home with greater confidence and it demonstrates to the seller that you’re a serious buyer.

3. A pre-approval letter signals that you’re a serious, interested buyer.

#2 It’s a Team Game, Not A Single-Player Experience

Every step you take to create your game-plan strategy as a buyer is important especially in today’s hot housing market. Why? Mortgage interest rates are still low by historical standards; however, they're increasing. Prices are going up and there is a limited supply of homes for sale. Don’t let this stop your search for your dream home.

What do we mean by “It’s a team game”? That means leaning on expert guidance as you plan every move is very important. Having a team of professionals like your trusted Real Estate Agent and Greenway Mortgage Loan Officer is important to ensure you make the right moves every step of the way.

#3 Set Realistic Expectations, Know What You Want and Can Offer

• The best way to avoid getting discouraged is to manage your expectations.

• Consider homes that need cosmetic updates.

• Be prepared for bidding wars. Before shopping around, know the maximum offer you’re willing to make.

• Target houses that are priced under what you’re pre-approved to buy so you have room to negotiate.

• Decide what you need and what you can live without in a home.

• Consider a fixer upper. You’ll likely face less competition!

• Be vigilant and be patient.

The Housing Market in 2022 – What to Expect:

• Home prices are expected to increase at a slower pace than in 2021. The National Association of Realtors projects home prices will increase just 2.8% in 2022, far less than the estimated 14.7% gain in 2021.

• Mortgage rates will likely rise in 2022. However, even if they go up, they will still be low. The National Association of Realtors projects the 30-year fixed mortgage rate to rise to 3.7% in coming months. The Mortgage Bankers Association projects an increase to 4%, while Fannie Mae and Freddie Mac project the 30-year fixed will average 3.3% and 3.5%, respectively.

Bottom Line:

If you’re serious about buying a home in 2022, contact a Greenway Mortgage Loan Officer to get pre-approved first or click here to get started.

Remember, getting a pre-approval letter isn’t just good strategy, it can a game changer! It allows you to get a full understanding of what you can afford, and it signals to sellers that you’re serious.

Connect with your trusted real estate agent and loan officer so ensure you’re playing chess and being strategic throughout the entire home buying process.

Your dream home starts here with Greenway’s USDA One Time Close Construction Loan. With 100% financing and a low minimum credit score, this program is designed to provide you flexibility and affordability, so you can build your perfect home – all with just one application and one closing.

USDA Construction Loans are rare, so if you’ve been struggling to find a lender offering one, you’ve come to the right place. Greenway Mortgage has an entire suite of Construction Loans available.

The Lowdown on the USDA One-Time Close Construction Loan…

To increase economic development in rural areas, the Federal Government created USDA loan programs. The One-Time Close USDA Construction Loan allows clients to take out a single loan for the construction of a home, combining two loans into one which simplifies the overall financing process.

The USDA Construction Loan is an affordable way to build your own home as it requires no money down*, has a competitive interest rate, and requires only one closing which saves the homebuyer a considerable amount in closing costs. For these reasons, the USDA Single Close Construction Loan is a popular option for construction projects.

What are the Program Details for the USDA One-Time Close Construction Loan?

• 1 time close

• Owner Occupied (1 unit);100% LTV

• 0% down required, depending on loan size* 

• 680 min credit score

*Finance up to 90% of the project (purchase price + cost to construct). Eligibility requirements, exclusions, and other terms and conditions apply.

What are the Benefits of a USDA One-Time Close Construction Loan?

Some of the key benefits include:

• Consolidate construction & purchase price for only 1 set of closing costs & fees

• Purchase a teardown property 

• If you already own an empty property & want to build a home, tear down & put up a new one, or do a major renovation on an existing home

• Pay just interest-only payments during construction

• Avoid requalification post-construction

• Simple & flexible draw process with no set schedule

• Use qualified licensed builder of your choice (self-build not allowed)

What are the Alternatives to a USDA One-Time Close Construction Loan?

A USDA Construction Loan is only one of the many options for those who are interested in building their own home. And Greenway Mortgage offers them all! Some other options borrowers might want to consider include:

• VA One-Time Close Construction Loan:  Tailored for veterans and individuals on active duty with the military who would like to build a new home. Click here to learn more about our VA Construction Loan.

• FHA One-Time Close Construction Loan: Helpful for borrowers who might not live in a rural area yet still want to build a new home. Click here to learn more about our FHA Construction Loan.

• Standard One-Time Close Construction Loan

There is an option out there for everyone seeking to build their dream home!

Bottom Line

If you are looking to build a new home or do a major renovation on an existing home, the mortgage experts at Greenway Mortgage are here to provide you with the services you need to get the job done. With construction mortgage experts on your side, you’ll be sure to have a smooth process and in the end your dream home. Contact us today to see if you qualify or to learn more about our One-Time Close Construction Loans.

How Do Construction Loans work, you might ask?

Overall Process:

1. Builder Approval 
2. Project Approval (appraisal, plans & specs, costs from builder)
3. Borrower Credit Approval
4. Initial Draw at Close (up to 50K) to get a project started and/or reimburse for any materials already purchased

Construction Period

1. Post close welcome call from the construction management company
2. Inspections are done as work is put in place, then checks for draws issued to builder and borrower
3. Once work is done, the loan is modified into a standard 30-year fixed loan at present market rates (vs. the interest-only loan in place during construction). Borrowers can pay down the balance on a converted loan in the event other property they owned has been sold in the meantime. No additional closing costs when the loan converts.

Specialized Features

1. Stalled projects
2. Modular construction
3. Major renovations (projects beyond scope of renovation programs)

Remember, Choosing an Experienced Lender is Critical

A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.

Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.