When you want to buy a home that is brand new, has never been lived in, or is custom to what you want in features and amenities, a new construction home is likely your best option. However, before you go out and find a builder and contract to buy it, make sure you prepare for the building and purchase process. Here are some recommendations that you can use to help you make a successful new home construction purchase.
Secure the Right Financing
One of the first tasks you can complete when buying any home, especially a new construction is to arrange for the financing and get it secured. The financing for your home purchase is essential for you to close and sign on the home, and it usually needs to be established in order for any new home construction to begin. If you are buying an existing new construction home that has already been built, you will need your financing in place just as you would if you bought an older home.
As you shop for a loan, check around before you select a lender so you can find the absolute best loan rate and terms. When you are looking at a 30-year mortgage, the lower the rate you find, the more money you will save over the entire life of the loan. So, if you shop for a loan and find a mortgage that is one-quarter of a percentage lower than another rate, go for the lowest rate. If you are working with a mortgage broker who has access to a large number of lenders and mortgage programs, they will do all the searching for you and can usually find the best rate that is available.
Arrange a Home Inspection
After your home has been built and before you move into a new construction home, you should make sure all is well with the home's structure and overall condition. Although it is a brand new home, there may still be problems in the construction. So it is essential to hire a professional inspector to go through the home and find any issues so you can have them repaired.
For example, if the home's HVAC ductwork is clogged in one section of the home, you will want to find this out before your first winter in the home when you will struggle to get enough heat in your home. Situations like this can be discovered and remedied before you move in. Your home builder will provide a home warranty on the home so that these problems and issues can be repaired and corrected.