How to Purchase a Newly Built Home

There are a few crucial considerations for purchasing a newly built house. You need to understand how the process works and what you’re responsible for when buying a new construction home. First, you must find a reliable builder who has been in business for a while. Research and interview them and ask questions about their past projects.

Find a Builder

Finding a builder is the first step if you want to purchase a new home construction. You can start by looking online or in your local newspaper for builders and projects in your area or asking friends or family for recommendations. Generally, you’ll want to select a builder who works with your budget and the type of home you’re looking for. At frenchbrothers.com, for example, you can choose the best house that suits your budget, preferences, and more.

Whether you’re buying a custom, semi-custom or production home, choose a builder known for quality and can provide you with a warranty. You should also check your credit score, affecting how fast your builder can get materials and workers for the project. Then, you’ll need to choose a mortgage lender that will work well with your needs and goals.

Make Your Offer

When you’re ready to make your offer, you want it to be as strong as possible. It includes ensuring the contract complies with all local laws and regulations. You should also make sure that everything is in writing. It will help you avoid any misunderstandings or errors down the line. If you’re a first-time homebuyer, new construction can be a great way to save money and get a brand-new home that’s move-in ready. But you should carefully weigh the pros and cons before committing to this option.

Negotiate the Price

When buying a new construction home, negotiating the price can be difficult. However, getting a good deal and asking for upgrades or discounts is possible. First-time homebuyers should choose a real estate agent with experience in new construction home negotiations can help you secure the best deal on your dream home. Typically, builders won’t budge on the base price of a new construction house, but you can sometimes negotiate more upgrades and additional costs in the form of credits at closing. It can come from the builder, preferred lender, or closing agent.

Get Pre-Approved

When you’re ready to buy a new construction home, one of the first things you should do is get pre-approved for a mortgage. It’s free, takes less than three minutes and will help you find homes within your budget. You must provide your bank or lender with information about your household income, credit scores, assets, and debts. Once they’ve reviewed your application, they will issue you a pre-approval letter. You can use this letter to make offers on properties, and the seller is more likely to accept it if you’re pre-approved. However, getting pre-approved doesn’t guarantee you’ll be approved for a loan.

Get a Third-Party Inspection

New construction homes often have some hidden issues. That’s why getting a third-party inspection is essential. Consider getting a home inspection at different milestones in the construction process to catch problems early on. A builder that doesn’t allow a third-party inspector to access the property during construction is a red flag. It means there’s some issue they’re keeping quiet about, which could be better. The inspector will look at many aspects of the home, including plumbing, electrical, framing, grading, drainage, and soil. They will also looks for leaks, water intrusion, and mold risks.

Finalize the Contract

After you’ve made your offer, met with the builder, and signed a purchase agreement, the final step is to finalize your contract. This involves meeting with your lender and signing off on the loan documents. The new construction loan process can be complicated, so getting pre-approved for a home mortgage is important before shopping for a new construction property. It will remove some guesswork and help you decide what type of home is right for you. Having an experienced real estate agent can help you navigate this confusing new construction home-buying process. They’ll know all the best questions to ask and can also negotiate for items such as upgraded kitchen cabinets and other features that are not standard.