Buying new construction homes can be a great option for home buyers. It allows you to customize your house and get into a brand-new property. However, some things must be remembered before committing to a new construction home.
Do Your Research
When searching for new construction homes for sale in Fuquay Varina, NC, it is crucial to do your research. This doesn’t have to be complicated; a simple search on the Internet can help you find builders and communities near you. It would help if you also looked into the reputation of contractors and construction companies. This will help you determine which contractor is best suited for the home of your dreams. Also, it would help if you looked into the area you are considering to evaluate things such as crime rate and proximity to schools. Lastly, it would be best if you did your research on financing options. Depending on your situation, you may need to close on a construction loan before the building and then take out a permanent mortgage once the house is complete.
You will also want to find a real estate agent with experience with new construction homes. You will want someone familiar with the process who can answer any questions you might have along the way. This is important because the on-site agent who works for the builder will not be working on your behalf.
Meet with a Lender
Depending on your situation, you may need to get pre-approved for a loan or demonstrate that you can cover the cost of a new home with current assets. Builders often have preferred lenders who understand the process and offer competitive rates. Your real estate agent can help you navigate the mortgage loan process. Your lender will typically require an appraisal of the property before closing on your new construction home. This step ensures that the builder hasn’t overpriced the property and that the purchase price isn’t more than the home’s appraised value. Understanding the builder warranty and what this policy covers is also important. This will help you make the right choice of upgrades and finishes. It’s also worth examining the timeline to see how long you will have to wait to move into your new home. Especially if you have a house to sell, you’ll want to consider contingency plans if delays are expected. You’ll need to plan for interim housing or storage, which can add to the costs of a new construction home.
Make an Offer
The first step is to meet with a mortgage lender to determine what you can afford. Obtaining a preapproval letter is essential. It is best to shop around and get a few different preapproval letters from reputable mortgage companies to find the most competitive financing options. Remember that buying a new construction home is more complex than purchasing an existing one. The process has a longer timeline, and the builder quality can vary greatly. Also, you may have to sell your current home before closing on your new construction home. Having a real estate agent represent you while purchasing your new construction home is a good idea. This can ensure all opportunities are communicated effectively. Also, a buyer’s agent can handle complicated negotiations, saving you time and money. A good buyer’s agent will always put your interests first. In addition, your agent will help you avoid costly mistakes and pitfalls during purchasing. A knowledgeable, experienced agent can help you navigate the entire process from start to finish.
Negotiate
New construction homes are an excellent option for homebuyers who want to skirt bidding wars and find their dream home. However, the process is different and requires more research and planning. This includes the importance of negotiating.
Hiring a buyer’s agent when purchasing a new construction home is a good idea. Builders pay the buyer’s agent’s commission, and it’s more beneficial for them to sell their properties when buyers have an agent in their corner.
Buyers should always ask about the builder’s warranty. Unlike the warranties on resale homes, builder warranties usually cover up to 10 years for any major issues. Your real estate agent will be able to help you understand the details of this warranty and negotiate on your behalf. They may also know about the perks offered by certain builders that can make your experience more enjoyable. For example, some builders offer furniture packages that save thousands of dollars. The key is to be informed and prepared for the negotiation process before you start looking at new construction homes.
Sign the Contract
Purchasing new construction homes involves many more steps than buying an existing home. The process can be lengthy and costly, but it can be worth the wait with patience and a great real estate agent in your corner.
Once you’ve signed your contract and handed in the earnest money deposit, you must complete the home closing process at a title company. All buyers that are party to the agreement — including non-purchasing spouses — must attend. Your buyer’s agent can help you negotiate terms for your purchase, such as warranty coverage and length. In addition, a good buyer’s agent can review your builder contract, ensure the language is clear, and protect your interests. While some builders have preferred lenders that they work with, it’s important to shop multiple lenders for mortgage preapproval so you can compare rates and terms. Depending on your loan program, you may close on a construction-only loan and then take out a permanent mortgage when the house is completed, or, in some cases, you can use a one-time-close loan that converts from a construction loan to a conventional mortgage at the time of closing.
