Buying a house can be exciting. It can also be overwhelming - especially if you're a first-time home buyer. This is especially true if you're buying a new construction house. Understanding the different steps involved can help you start this journey with confidence.
What is Considered a New Construction House?
New construction refers to a home that the buyer will have built for their residence. No other homeowner has lived in that house before. A new construction house can either be designed by the homebuyers themselves, it can be designed by a home designer or it can be designed by a contractor.
Step 1: Choose A Mortgage Company
The first step will be to find a mortgage company to work with if you don't have the cash to pay for the new construction home. A bank will help you finance the construction of a home through a construction loan. Taking this step first will help you better determine how much home you can actually afford. Although the amount you're approved for might be tweaked a little once you find a contractor, this gives you a general idea of how much money you'll have to work with.
The mortgage company will give you preapproval if you meet the requirements. The preapproval step also lets you know how much you need to have put aside for a down payment.
Step 2: Choose a Real Estate Agent
Most people wonder if they should hire a real estate agent to help with a new construction home, but these professionals can actually be a great asset during this process. Having this professional in your corner will ensure that you are represented fairly and that you have an advocate that understands this market.
Step 3: Choose Your Location
The location of your home will be a vital detail that could affect many other details in the construction process. Each county and each city within a county will have rules and regulations concerning construction. These rules will dictate how much land is necessary to build and what types of structures can be placed on the land.
This is one way in which a real estate agent can be very helpful. These professionals will be acquainted with the rules and regulations in local areas and can help you choose a location that matches your goals.
Step 4: Choose a Contractor
You should really spend some time researching contractors before deciding on one. You should talk with past clients to find out the good, the bad, and the ugly about each company. There will be pros and cons to every construction company. Be sure to weigh these details carefully. Who you choose to build your home will greatly affect the timeline and the stress level of the project.
Step 5: Choose a Design
Whether you're designing a home yourself or going with a preset design, take time to consider what you want out of your home and choose a design that will live up to these expectations. Building a home only happens a few times in life. You want to make sure you get exactly the home you want.
Step 6: Be Patient
Once construction on your new home begins, it's important to be patient. There will be an estimated completion date for your home, but you should keep an open mind to the fact that many factors could affect this timeline. Weather, supply issues, and even personal problems could slow down the construction of a project.
Although it's important to be patient, you should also be on the watch for any unnecessary delays that are not appropriate. Don’t be afraid to speak up if the contractor is moving far slower than expected for no good reason.
Step 7: Complete Inspection
Your new construction home will need to have a home inspection completed before you can move in. Home inspection criteria are set by counties and cities. Be sure your contractor is in compliance with all codes and regulations so you do not hit unnecessary snags in the completion of your house.
Buying a house is a big project, but it can also be one of the most satisfying goals once it's completed. It's important to know what should happen during the pre-construction process of your new home build or major remodeling project to get your job done efficiently and economically.
