So, you’re thinking that your next house might be a new construction home. What exactly does that entail? Most of the information online pertains specifically to purchasing an existing home, so we’re going to fill in the gaps of what to watch out for.
We’ve already covered the different types of loans for a new construction home. 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 real estate agent and lawyer.
It’s a good idea to get a real estate agent for your new construction home. When looking for an agent, 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 real estate agent 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.
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 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 construction 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.
Visit the site regularly
Make the time to meet with your builder regularly, preferably weekly. In these meetings, you can go over the details and progress of the home build. Scheduling time for these meetings can help both you and your builder. It helps you because you’ll have realistic expectations of the timeline and your home itself. It helps your builder because it gives them an opportunity to go over any issues or ask questions that may have recently come up.
Look for builder’s incentives
One of the great things about building a home is the ability to tailor it to your family’s needs. However, those customizations can add up very quickly. So, we recommend asking about incentives when you’re deciding which builder to go with.
We hope this blog helps to put your mind at ease if you’re considering a new construction home. Ready to start the mortgage process? Our online application takes anywhere from 5-20 minutes to complete. Once it’s submitted, we can have you pre-approved for a loan in just a few hours.