So, you’re thinking that your next house might be a new construction home. What exactly does that entail? Most of the information on the internet pertains specifically to purchasing an existing home, so we’re going to fill in the gaps of what to watch out for.
We already covered the different types of loans for a new construction home. If you missed that post or need a refresher, you can find it here.
Now, we’re going to talk a little more in depth about what tips to follow and questions to ask when purchasing a new construction home.
Rely on the experts
You rely on experts in other aspects of your life, so it shouldn’t be any different when it comes to this. Specifically, you should rely on your realtor and lawyer.
It’s a good idea to get a realtor for your new construction home. When looking for a realtor, choose one with new construction experience. They will be more familiar with the building process, meaning they will be able to navigate you through the plans and specifications phase. An experienced realtor will also review the builder allowances to make sure there is enough money for each item. Carpet, plumbing, and lighting are the areas where buyers tend to have the most overages.
Working with an experienced agent from the beginning will help you stay on budget and ensure a smooth transaction! Plus, the seller pays for the agent so hiring a realtor doesn’t cost you anything.
If you don’t already have a lawyer, you should find one. The contracts that accompany new construction homes can be complex and hard to understand. And it’s always a good idea to have an expert review legal documents before you sign them.
Ask about warranties
New homes often come with warranties on either the products or the craftsmanship, sometimes on both. You need to make sure you understand what is and isn’t covered under the warranty, and what process to follow to get things under the warranty fixed. Trust us, you’ll thank yourself for finding all of this out before your furnace quits in the middle of winter.
Get a home inspection
You may be thinking you don’t need a home inspection. It’s a new home so nothing is wrong with it, right? Wrong. New homes can have the same problems as older homes. Not only can getting a home inspection make you aware of issues before closing, but it can help you identify issues to watch for as your warranties near their expiration. [bctt tweet=”Don’t forget the home inspection – new homes can have the same problems as older homes.” username=”MTGSpecialists”]
What needs to be done before closing
In short, a lot needs to happen before closing. However, we think the following two items are the ones you need to focus on:
- You should always take a final walkthrough of your new home after construction is complete. That way you know exactly what you’re buying.
- Similarly, the appraiser needs to appraise your home after it’s complete before closing. This is one of the most common reasons new construction closings are delayed, so try to be proactive with your planning.
We hope this blog helps to put your mind at ease if you’re considering a new construction home. We truly believe that being informed is half the battle. If you still have questions, please feel free to call us at (402) 991-5153, any time day or night. We take pride in helping our clients fully understand the mortgage process and their loan.