5 Tips for Buying a New Construction Home
Buying a new construction home is an exciting journey. From the first decision to create a home that is all your own to the final move-in after the house has been built, being prepared for the process is important. The more you can do to get ready, the easier the process will be throughout. The following tips can help new construction home buyers.
Talk to Lenders
Compared to the traditional home buying process, obtaining a mortgage for a home that hasn't yet been built is a little more complicated. Without a home, there's more risk to the lender. For this reason, some lenders will not provide construction loans at all. Other lenders may provide construction loans, but for an increased cost.
Shopping around for lenders is important. Home buyers who want to get the best deal possible should start talking to lenders early in the process to see if they meet the qualifications.
Make a Budget
Making a home-buying budget is important. Home buyers who know how much they can afford to spend on their new construction home can use this information during the negotiation process with the home builder. It's important to communicate the budget with the home builder to keep the new house on track and avoid over-spending.
Research Home Builders
It's important to work with a reputable, experienced home builder. It's better to hire a qualified builder at a higher price than it is to hire a less-reputable or less-qualified builder and pay for any additional repair or maintenance after the house has been constructed. When looking for a good home builder, it's important for people to consider the following:
- License and certifications. Make sure the contractor meets all the qualifications to build in the state where the home is being constructed.
- References. Check references to ensure that home buyers from previous years have had a good experience with that builder.
- Portfolio. Does the contractor have proof of good work in the past? Does their style match the home buyer's personal tastes?
- Communication. It's very important to work with a home builder who has an effective communication style throughout the entire process.
Know Your Must-Haves
Home buyers should know their priorities when meeting with home builders for the first time. Do they want a pool in the backyard? How many bedrooms? How much space? Will there be a dining room? What kind of materials do they prefer? Do they need a fireplace? All of this information is important to work out before the construction begins.
Choose the Perfect Lot
It's important to choose a lot with features that line up with the home buyer's needs. Commute time, proximity to nearby businesses and neighbors, yard size, view, and other factors should all be taken into consideration when choosing a lot.
Buying a New Construction Home? Prepare Early
The more prepared you are to buy a new construction home, the better the experience will be overall. Start your planning process now so that when the time comes to buy a new construction home, you'll be fully prepared and know what to expect.