So you’re thinking about building a new home, congrats! A home builder can turn your dreams into a reality. The journey to building and customizing your own home is an exciting one. There are steps you can take in the beginning to make the trip enjoyable. After all, this is your dream home, why not enjoy yourself every step of the way? Preparing and getting approved for new home construction is similar to the process of buying a pre-made home.
Some new home developments provide the option of an in-house realtor to help you through the buying process, but you also have the option of hiring an independent realtor. Realtors will help you get your thoughts in order, explain the benefits of different developments in your area, and answer important questions to ensure your complete understanding of the process. When searching for a realtor, it’s important to look for someone that you feel comfortable consulting with and can give unbiased advice. An agent should provide excellent service, knowledge, and guidance on all of your options. Most importantly, be certain to hire a realtor experienced in new home construction to represent you through the new home construction process.
Found a realtor you like? Great! Now it is time to get pre-approved. Often times, seasoned realtors partner with lenders. This is to your benefit, because your realtor and lender must communicate and work well together to ensure everything goes smoothly and all the paperwork is filed correctly.
Speak with your lender and try to get pre-approved so that you have a ballpark idea of what your budget should be before you look at model homes. At this time, you can compare financing offers from competing lenders in order to get the best offer. Builders usually recommend their own lender to customers, sometimes offering incentives to do so.
After obtaining a realtor and mortgage pre-approval, it is then time to look into a home builder to construct your new home. Get a price quote from the builder and review the features you want in your new home. It is possible to save money on the construction of your house by hiring independent contractors who will add any finishing touches to your new home at a lower rate than the initial builder.
If you want to build your new home outside of a builder?s development, then you will be required to secure your own lot. Carefully consider your options when purchasing land as it may vastly increase the overall budget of the project.
Contracts are tricky and are one of the most important parts of every home buying process — even more so when you’re building a new home. Inspections are required, deadlines get missed, and small issues, in the beginning, can ripple out to a completion date that is later than expected.
Protect yourself. Have the contract reviewed by a real estate attorney prior to signing so that contract contingencies are clear between parties along with whom is liable for what and what your cancellation rights are. Additionally, make certain that the contract has a guaranteed completion date and includes your recourse if there is a delay. Ensure the completion date is not contingent on a certain state or local building and occupancy permitting requirements that can push back your move-in date. Your newly constructed home should be covered by one-year workmanship and a ten-year structural warranty, whatever the case may be make sure it is clear as to what the warranties cover.
Moreover, be sure that the contract for your new home includes an experienced home inspector who works independently from your builder. For assurance that the home was properly built, have your inspector review your home at least 3 or 4 times. Once to check out the house after framing. Twice to inspect the internal systems of the house before the walls are closed. A third for when the house is complete and maybe a fourth time to do an inspection with yourself and the builder as a final walk-through.
Now you’re educated on how to prepare yourself for a homebuilding journey. Do you think you’re ready to start? Arista Development, LLC is a premiere home builder in Las Cruces, NM that will build in any Las Cruces community. We’ll work closely with you to ensure that Arista Development is the home builder that checks off all of your boxes.