A Guide to Financing Your New Home

Many of us look forward to the day we can purchase our own home. It’s a dream, a bucket list goal, and a sense of accomplishment that many of us seek. One of the biggest steps in the homebuying journey is figuring out your financing options. Where do you begin? With an impressive selection of loans and terms that fit your long- and short-term needs, investing in a new home could set you on the path to a brighter financial future and provide you with the joy of homeownership. It all begins with understanding the home financing process, so you can feel more confident and comfortable during the homebuying journey. Read on to see what you need to know when it comes to financing your new Tri Pointe home.

Begin with the basics

A good place to start your new home financing process is by submitting your pre-qualification application to our affiliated mortgage company, Tri Pointe Connect®, as this helps provide a better understanding of your purchasing power. Specifically, it provides you with helpful information like how much you’ll be able to borrow to purchase your new Tri Pointe home. And, if you decide to finance your new home purchase through our affiliated mortgage company, you will get the benefit of an easy-to-understand, four-step process that’s seamlessly integrated with the construction and delivery of your new home.

Financing made simple

Did you know that a 20% down payment isn’t always required with certain types of loan options and some require as little as 3% down? It’s true, and a relief for many. The second step in the home purchasing process includes discussing your loan options with a new home loan consultant and getting your pre-qualification letter.

Pro tip: Ask to see your projected monthly payments during this consultation — it will help you break down your total home cost in a more manageable way and provide you with a better idea of how much to budget for your new home. The final steps in the purchasing process include executing your new home purchase agreement and receiving your final loan approval and loan funding. Once those steps are complete, you’ll receive the keys to your new home.

Home financing terms to know

You may come across a variety of financing acronyms and terms in your homebuying journey that may be unfamiliar to you. This is especially true when it comes to the different types of loans offered. We’re breaking down some useful mortgage terms that will help guide you as you’re exploring what financing options would be best for you.

Fixed-Rate Mortgages (FRMs) — A mortgage in which the interest rate does not change during the entire life of the loan, making it so your monthly mortgage payment remains the same.

Adjustable-Rate Mortgages (ARMs) — A mortgage whose interest rate changes periodically based on the changes in a specified index, making initial mortgage payments lower for the first three, five, seven, or even ten years.

Conventional Mortgage — A mortgage that is not insured or guaranteed by the federal government and can be used to finance a primary residence, vacation home or rental property.

Veteran’s Administration Loan (VA) — A government agency guaranteeing mortgage loans with no down payment to qualified veterans.

FHA Mortgage— A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage, which means that lenders are protected if a borrower defaults on their mortgage — making it easier for lenders to offer more favorable terms to borrowers.

Points— Charges levied by the mortgage lender and usually payable at closing. One point represents 1% of the face value of the mortgage loan and reduces the interest rate to the borrower.

Rate Lock — A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time. Once you protect your interest rate with a rate lock, you'll have peace of mind should interest rates rise before you receive the keys to your new Tri Pointe home.

Taking the step to homeownership

From your initial neighborhood tour to the first day you move in, the Tri Pointe Homes team will be with you every step of the way. We will take you through all of the steps of buying a home including:

• Helping you find a neighborhood and home that fits your lifestyle

• Executing the purchase agreement

• Reviewing the financing process, including initial underwriting, loan approval, processing, final underwriting, and final loan approval with your mortgage lender

• Scheduling a personalized appointment with the Design Studio

• Keeping you informed throughout the home building process

• Receiving the keys to your dream home

Making your [home] dreams a reality

When you’re ready for your dream home, we want to make sure you know what to expect ahead of time — the timeline, the choices, your goals, and all the details in between. That way, you have everything you need to make smart decisions and can have an amazing experience watching your future come to life. You’ve got this. So, ready to take the next step? Explore our Homebuying Journey guide to learn more.

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