Financing 101: Everything You Need to Know About Buying a New Construction Home

Buying a new construction home is a big decision, and for many buyers, the financing side of the process can feel like the part with the most questions. How much do you need for a down payment? When should you get pre-approved? What happens to your interest rate? Are there programs that can help with closing costs?

The good news: you don't have to figure it all out on your own.

When you're shopping for new homes in Oklahoma City, Edmond, Norman, Moore, Mustang, Piedmont, Yukon, Broken Arrow, Bixby, Stillwater or Tulsa, understanding the basics of home financing can help you approach the process with a lot more confidence. The right loan isn't necessarily the same for every buyer, which is why Homes by Taber ® works with a variety of lending partners and loan programs to help buyers explore their options.

Here's what you should know before financing your new Taber home.

1. Start With Pre-Approval, Not Just a Home Search

It's tempting to start scrolling through floor plans and touring new homes as soon as you decide you're ready to buy. And honestly, looking at homes is one of the best parts. But getting pre-approved early can give you a much clearer picture of what you can comfortably afford.

A pre-approval allows a lender to review your income, assets, credit and other financial information to determine how much you may be qualified to borrow. It also gives you a better idea of your potential monthly payment and helps you understand which homes and floor plans fit your budget.

The process can move quickly when you have the necessary documentation ready. In many cases, pre-approval can take just a few days.

And remember: pre-approval isn't the same thing as a final loan approval. Your lender will continue reviewing your financial information throughout the homebuying process.

2. Understand What Goes Into Your Monthly Payment

When comparing new construction homes, looking only at the advertised purchase price doesn't tell the entire story.

Your monthly housing payment can include several components, including:

• Principal
• Interest
• Property taxes
• Homeowners insurance
• Mortgage insurance, if applicable
• HOA fees, where applicable

That's why two homes with similar purchase prices can have different monthly payments.

Interest rates also have a direct impact on purchasing power. Even a relatively small change in the rate can change how much home fits within a specific monthly payment.

Homes by Taber offers a mortgage calculator to help buyers estimate principal and interest payments, but those figures are only estimates. Your actual rate, terms, taxes, insurance and other costs will depend on your individual situation and lender.

The takeaway? Shop based on the monthly payment you can realistically afford, not just the number on the listing.

3. There Isn't One "Right" Mortgage for Everyone

This is one of the biggest things to understand about financing a new home.

A conventional 30-year fixed-rate mortgage may be the right choice for one buyer. Another buyer may benefit from a VA loan, an adjustable-rate mortgage or a program designed to address a specific financial situation.

Homes by Taber works with lenders that offer a variety of financing programs, including:

• Adjustable-rate mortgage (ARM) loans
• VA loans
• Down payment assistance programs
• Loans that can help cover closing costs
• Lender credits toward closing costs
• Credit repair programs
• Programs for buyers with lower credit scores
• Bank statement income approval for self-employed buyers
• Bridge loans
• Home equity loans

That doesn't mean every program will be available to every buyer. Credit approval, income, loan type and other qualifications apply.

It does mean you shouldn't assume you know which mortgage is right for you before talking with a qualified lender.

4. Don't Overlook Closing Costs

One of the most common surprises for homebuyers is realizing that the down payment isn't the only money needed to close. Closing costs can include expenses associated with originating and closing the mortgage, title services, recording fees, prepaid expenses and other transaction-related costs.

The exact amount varies based on the loan, purchase price, location and other factors. This is also an area where available lending programs and incentives may make a difference. Homes by Taber works with lenders that may offer lender credits or other programs that can help offset eligible closing costs, depending on the buyer's circumstances.

That can be especially worth exploring when you're comparing the total cost of purchasing a new construction home.

5. Ask About Rate Buy-Downs and Other Options

Interest rates can change what you can afford, but the rate you're seeing today isn't necessarily the only financing scenario available to you.

Some lenders offer interest-rate buy-down options, which can reduce the interest rate for a specified period or under certain loan structures. ARM loans may also offer a lower initial fixed rate than some traditional fixed-rate mortgages, although the rate can change later based on the terms of the loan. 

There are pros and cons to every financing strategy. That's why the goal isn't simply to find the lowest advertised rate. The goal is to understand the full loan structure, monthly payment, upfront costs and long-term financial implications.

Your lender can walk you through those numbers and explain how different options compare.

6. Buying New Can Change the Financing Conversation

Financing a new construction home in Oklahoma isn't exactly the same experience as financing a resale home.

With a resale, you may be purchasing a home that needs immediate updates, repairs or renovations. With a new Taber home, you're purchasing a newly built home with modern systems, current construction standards and a long list of included features.

That can make it easier to think about the total cost of homeownership from the beginning.

Homes by Taber also offers Quick Move-In homes for buyers who need a home sooner, along with homes that can be built from the ground up. Depending on the home and financing scenario, available lending programs can apply to either option.

7. Homes by Taber Has Financing Resources to Help You Explore Your Options

Homes by Taber doesn't provide the mortgage itself. Instead, the team helps direct buyers toward lending options based on their borrowing needs.

That distinction matters. Your financial situation is unique, and your lender is the professional who can provide specific guidance about loan qualification, interest rates, down payments, closing costs and monthly payments.

There are also programs available specifically to Homes by Taber buyers through participating lenders. For example, Stride Mortgage currently offers a $2,750 lender credit to eligible Homes by Taber customers who finance with Stride, whether purchasing a Quick Move-In home or building a home from the ground up. Program terms and eligibility requirements apply.

Homes by Taber also offers resources like a mortgage calculator and financing information to help you start asking the right questions before you ever sit down at the closing table.

Financing Your Proudly Overbuilt ® Home

The financing process doesn't have to be the most intimidating part of buying a new home.

Start with a pre-approval. Know your budget. Understand your monthly payment. Compare loan options. Ask about down payment assistance, lender credits, rate buy-downs and other programs that may apply to you. Most importantly, don't assume that one financing strategy works for every buyer.

Whether you're searching for new homes in Oklahoma City, a new construction home in Edmond, Norman, Moore or Piedmont, or you're looking at new homes in Broken Arrow, Bixby, Stillwater or Tulsa, the same principle applies: the best home purchase starts with understanding the numbers.

Homes by Taber has built its reputation around giving buyers more through its Proudly Overbuilt approach. Financing is another part of making sure you understand what you're buying, what you're paying and how the pieces fit together.

Because buying a home is a major investment, you deserve to go into it informed. Learn more by calling at (405) 984-1185 or filling out the online form.