What can you expect when buying new construction?
We all look forward to the day we purchase a new home, but buying new construction is especially exciting. There is nothing better than actively being a part of the process and seeing your future home come together from start to finish. Whether you begin with an empty lot, or jump in after the construction has started, the completion of a new home is truly a rewarding experience for all involved. There are several steps you must consider before signing any contract, so we have broken it all down for you below.
Step 1: Meet with a Rose and Womble Realty New Home Consultant
- Your New Home Consultant will discuss everything that is important to you, and evaluate the requests in order to direct you to the perfect development and homesite that is most conducive to your individual needs. It is important that you have done thorough research to determine what area you feel most comfortable in. Make sure to think long term and look into factors such as school districts (if important to you), future construction plans, commute times, crime reports and lifestyle interest- if you are unsure where to find this information, your consultant will be able to better direct you.
Step 2: Obtain Mortgage Pre- Approval and Purchase Agreement
- This next step is crucial for any home-buyer, not just the new construction buyer. Your builder will most likely have a preferred lender they partner with, and sometimes may offer some benefits when using the preferred lender, although it is not required. Once you have selected your Loan Officer, they will pull your credit and determine your buying power in a pre- approval letter. This is an important step because the lender will give you some suggestions on how to save money over the next few months, how to prevent any delay in closing, as well as helping you in making financial decisions in regards to adding any upgrades to your dream home.
- Once you have obtained your pre-approval letter it is time to secure your lot, or dream home which is done through a Purchase Agreement. This contract will lock in your homesite, estimate the project’s closing date, determine the obligations of both the buyer and the builder, as well as all other terms for the contract.
- Once your agreement is signed, you must then go through the lender’s loan application to receive your funding. Where-as your pre-approval letter only looked into your credit, this loan application will pull reports from the IRS, your debt-to-income ratio, any liens or open credit accounts, etc. to fully determine your loan amount. You can expect this process to take anywhere from 3-5 weeks, but can vary depending on circumstance.
Step 3: Personalize Your Home at the Builder Design Center
- This next stage is where your design expertise comes in to play, and you can really make this project your own! The builders will give you a selection of color pallets to choose from that could be used for your walls, cabinets, shutters or siding. You will be able to choose what type of flooring you prefer, and even the color or style of counter-top you have always dreamed of for your kitchen or bathrooms! Be sure to keep in mind that your customized options may vary from builder to builder so it is important to get this information before you sign any contracts.
Step 4: Building Permit
- Once you have met with the design center and chose all of your custom options, the builder can then go forth with applying for the building permit. This is something out of your control and all in the hands of the builder. One less thing you have to do, but still an important part of the process. The builder cannot start the construction until the city has approved the plans. This time frame varies from city to city and all depends on the construction plans, so be patient during this phase and know everything is being taken care of for you!
- It is common for builders to already have permits for the lots to choose from, which will limit your custom options but speed up the building process.
Step 5: Construction Begins
- Now that the permit has been approved, the builder can start constructing your home. Please keep in mind that during the building of your home, it is crucial you only go onto your homesite with permission to ensure yours, and all others safety. Here is the building process:
- Pouring of foundation
- Framing of the home
- Rough plumbing and electrical hook-ups
- Drywall (this is where most homeowners start to really feel the excitement as it all comes together and they can start to picture where all of the furniture will go)
- Interior trim work
- Paint and cabinets
- Final trim and punch list
- Quality Inspection
Step 6: Owner Orientation with Builder
- Once your home is done being built, you will then have an appointment with the builder to walk the property and learn about all of the features and how everything works. Whether you have the latest garage opener or newest stove to date- they will ensure you are well informed of your home from top to bottom.
Step 7: Closing
- CONGRATULATIONS! You have officially completed your new home from start to finish and the big signing day is here. At this final stage you will meet with a Settlement Agent, and close on your new home. Enjoy all of the benefits and start making the first memories in your newly constructed home- what a rewarding experience it has been!
In a rush for new construction?
Rose and Womble Realty has a wide selection of Move-In Ready Homes that can be yours in 75 days or less.