The new construction process differs somewhat from buying a pre-owned home.
Let me help you through that process.
1. Decide on Your Builder & Homesite.
If you are looking at a particular neighborhood, find out if there is one builder or if the developer allows you to bring in your own builder. On a lot that is not restricted to a particular builder, research reliable builders that stand by their work when looking at new construction. Meet with builders before you make your selection. Organized and good communication from a builder is key.
2. Obtain Pre-approval or Proof of Funds.
Builders or developments often work with particular mortgage companies and will offer discounts on closing costs for using their “preferred” lender. Whether you use the builder’s lender or someone else, you will need to get pre-approved for financing. If you are not financing, obtain proof of funds from your financial institution.
3. Sign a Contract with Your Builder.
Builders use their own contracts that are similar to a regular sales contract, but include additional terms specific to the new construction building process. Terms may include items such as, at what points during building the contractor gets paid, and what options you have to choose from. Your agent can help you interpret the terms of the builder’s contract before you sign.
4. Secure a Loan.
Once you sign your contract, the lender will need to get started on your loan application. It’s important that you provide them any information they ask for in a timely manner.
5. Select Your Options.
There will be a lot of decisions to be made throughout your new construction build. Having your choices prepared for each stage, will help keep the build on schedule. Most builders have someone who will work with you to let you know what stage they are on and which decisions are coming due and when they need to be made. If your build is custom, you will need to do a lot of research into finishes, fixtures, colors, hardware, and appliances so you know what you want and what you can afford.
6. Home Walk Throughs Throughout the Building Process.
You will need to check on every phase of construction to double check that everything is done according to plan. Even the best builders have miscommunications, mix-ups on orders, or problems with installations. Keep up-to-date & visit the home regularly, once it gets dried-in.
7. Optional Inspection.
Even though your home is brand-new, you might still want to have a home inspection done. Sometimes an inspector will catch something that slipped past the contractor and code enforcement.
8. Closing day!
Closing day on new construction differs slightly from a pre-owned home in that there is often a “punch list” of items the builder is responsible for finishing up either on closing day or shortly afterwards. This may include cleaning, touch-up painting, installing landscaping, or changing out locks. You should have the opportunity to go through the house with the builder shortly before closing to add items you notice to the punch list.
Question? Contact Crystal Kateryniuk with any questions here!
Looking for information on WHY to use a Real Estate Professional when buying your next vacation home? Check out my previous blog in regards to this here!
Need to sell your previous vacation home first? Read WHY to use a Real Estate Professional to sell here.
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