The new construction home-buying process differs from the buying process for an existing home. While many of the steps are similar, new construction homes come with more specific requirements.
Here is a basic step-by-step guide to the buying process for a new construction home:
Create a Budget
With new construction homes, you have to account for your ongoing expenses while the home is still being built. Whether this means your current home expenses or temporary residence, it’s crucial to plan your finances before you get started on the process.
Get a Construction Loan
Getting pre-approval for a mortgage loan is a common early step in the home-buying process. Buying a new construction loan requires getting a construction loan. These loans can have different requirements depending on where you’re building your new home.
Find a Real Estate Agent
While it might seem like new construction doesn’t require help from a real estate agent, hiring your own trustworthy agent can help you when working with a builder.
Real estate agents should also be involved to help protect you from any uncanny legalese or process questions.
If you have not already found a prospective home builder in your area, it’s time to research your options. Be prepared to ask about their experience in the area and with your particular style of home.
Choose Your Features
New construction homes usually have different timelines and pricing based on the level of customization you want. The three main types of construction are custom, semi-custom, and spec.
Hire a Home Inspector
Hire your own home inspector to examine your new construction home when it’s finished. This will make sure you’re getting an unbiased opinion on the home's condition.
Close on Your New Construction Home
For new construction, closing day is the day you’ve finished all of your financing documents and the home is physically ready for move-in. It’s a good idea to establish regular checks on the building process before the day arrives.
Buying new construction can have many benefits over buying an existing home. However, it’s important to know the differences in terms of process. Keep these steps in mind when preparing for your own home-buying experience.