By Gene DiPaulaFeb 24, 2017
If you’re looking to buy a new home, you may have considered purchasing a brand-new home, rather than one that has already been built. There are many benefits to buying a new construction home, but there are also many factors to consider when you are making your choice. If you are looking to buy a new home, these tips can help you make the right home purchase decision for you.
- Get pre-qualified – Whether you’re purchasing a custom-designed home for you and your family, or a home in a newly-constructed subdivision, you will need to make sure you have been pre-qualified for a mortgage. This will help you save time, and make sure that the home you’re building, or the homes you want to look at, are within your price range. Your lender will also be able to put you in touch with a qualified real estate agent to help you during the next step in the process.
- Make sure it’s really what you want – As with any major life decision, it’s important not to rush into buying a new home. Weigh the pros and cons of buying new construction versus buying an existing home. For example, if the new development is farther away from the city, will this affect your commute? Do you like the way that modern construction looks? If you have a view, will it still be there in 5 years? Are you comfortable with the extra work that may be involved in landscaping a newly built home? These are all important factors to consider when deciding whether buying new construction is right for you.
- Do your research – Before making any commitments, it’s important to research the builder that is building your potential new home. Know their reputation and ask for client references. Visit other communities that they have built in. Research the neighborhood too; drive around, visit model houses, research zoning laws, and talk to locals. Your real estate agent will be able to provide you with insight into the neighborhood(s) you are interested in as well, and will have other recommendations.
- Ask about the HOA – If the subdivision you’re looking at has a homeowners’ association (HOA), you will want to ask the builder for the HOA’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs). This will tell you about things that the HOA may or may not allow in the neighborhood – and some of those things may be a deal-breaker for you. Additionally, find out what the HOA dues are, and when you are expected to start paying them.
Buying a new construction home can be a great investment. Your home’s design and layout will be new and up-to-date, and you will have some say in the home’s design, the fixtures, and the overall look of the house, to help make it more “yours.” But it’s important to make sure that you know everything associated with buying a new home before you make the decision. If you have more questions about buying a new construction home, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!
These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.