Pre Construction Homes

**freddymay** · 12-12-2006, 08:43 PM

Hey guys.. really need some advice.

Im in the process of giving a deposit for a pre-construction home. I cant pass up the offer as I can afford it and its in the area I want to live in. The issue is that my credit isnt perfect. I know within 3-4 months I can get rid of some collections and get a better FICO score. I got an offer that I can afford but I know I can get a lot better with a better score.

My question is can I do this? And whats the best way to deal with this? Building starts next month and the home will be done in June or July which is when closing will happen. I want to repair my credit and lock in the best rate. Should I do this ASAP or is it okay to wait? I dont want rates to go higher..etc.

Thanks
Fred

**REbuyersgroup** · 01-18-2007, 03:24 PM

This is kind of an old post, but was reading through the forum.

Not sure if you made a decision, but you have to consider the risk of putting down a deposit and not being able to close due to credit issues. You may end up loosing your deposit.

Be careful.

**minnesota-mls** · 12-08-2008, 03:15 PM

I was looking through a list of older posts and I saw this one...

There is certainly a risk present of your credit not being in shape at the time of closing in order to qualify for the home purchase. However, if a buyer really felt that they were getting such a great deal on the purchase, it is certainly something to consider.

Here in our real estate market in Minnesota, the various preconstruction opportunities have all but gone away. With prices having fallen and inventory still high on MLS, the preconstruction model is not one that is really working right now.

I hope this info helps!