Congratulations! I’m betting if you are here, you’re considering purchasing new home construction! There are many benefits to new home construction that outweigh purchasing a pre-owned home (see here ), and the process is a little different. Below is a snapshot on what you can expect!
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. If you are looking at building on a lot that is not restricted to a particular builder, it’s important to research builders in your area to find one that is reputable and stands by their work. Meet with builders before you make your selection. It’s important that they are organized and communicate well.
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 a pre-approval for financing. If you are not financing, obtain proof of funds from your financial institution.
Builders use their own contracts that are similar to a regular sales contract, but include additional terms specific to the building process, such as at what points during building the contractor gets paid, and what options you have to choose from. We can help you interpret the terms of the builder’s contract before you sign.
Once you sign your contract, the lender will start on your loan application. It’s important that you provide them any information they ask for in a timely manner.
There will be a lot of decisions to make throughout your build. Being prepared with your choices at each stage will help keep the build on schedule. As designers we will work with the builder’s consultant to stay abreast of which stage the build is in, which selections are coming due and when they need to be made. If your build is custom, we will be working with vendors, showrooms and design centers to also make sure that all of your selections are on time and staying within your budgets.
We will walk through each phase of construction with you and your builder to assure everything is done according to plan. Even the best builders have miscommunications, mix-ups on orders, or problems with installations. Plan on visiting the home daily once it gets dried-in.
Even though your home is brand-new, we highly recommend performing a home inspection. Sometimes an inspector will catch something that slipped past the contractor and code enforcement.
Closing day on new construction differs slightly from a pre-owned home. 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 will have the opportunity to schedule a walk through on your home with the builder shortly before closing to add items you notice to the punch list. Once all is completed and documents are signed, you will receive the keys to your brand new home!
If you are considering purchasing new home construction, let’s connect! Contact us at firstname.lastname@example.org or jump on our website @ http://www.shannanbowerhome.com and schedule a consultation! We look forward to getting to know you!