top of page
  • Blue Pointe Title

5 Steps to Buying New Construction Homes


a new construction home

As their name suggests, new construction homes are those that are newly built, making your family the first ever to live in it. Some people choose this option because they want to start fresh. Others do so because they have been searching, but have not found the perfect place to call home. 


Regardless of the reason, more people are investing in these homes today than ever before. So, knowing how to navigate the process is always a good idea. This article will explore 5 steps to buying new construction homes. 


1. Get Pre-Approved For a Loan

In today’s real estate market, before you can even start looking at properties, you need to have a mortgage preapproval in hand. While financing a new construction home is quite similar to buying one that is already built, there are a few differences.


Note that some builders will recommend that you go through their lender and maybe even incentivize your decision to do so. However, you should always reach out to an outside lender of your own to see if the terms they offer are comparable to what the builder’s lender is offering. 


There are different types of loans you may want to consider, such as a bridge loan or a construction loan. Be sure to discuss your best options with your lender. 


2. Work With a Builder

When you are ready and know where you want a home, work with a builder to discuss the details of your new home. This will include everything from the material you want your home built from to the lighting you want over your dining room table. 


You will be presented with many options and upgrades. Be sure to weigh your pros and cons and consider the costs of the upgrades. While some may be worth it and add value to your home, others may not. So, weigh carefully. 


3. Start the Building Process

Once everything is lined up, a price has been negotiated and agreed upon, and an earnest money deposit has been made, it is time to start building. On average, you can expect it to take several months to finish the home build. 


It is worth noting that some loans for new construction will require inspections after different phases are complete throughout the entire construction process. This may add some extra time to the overall process. 


4. Inspect Your New Construction Home

As soon as your new construction home is built, it is time to inspect it. This will be done professionally, of course. But, you will want to make sure everything is as you discussed and confirm that there are no issues. 


Anything that is wrong, missing, or problematic should be placed in writing and submitted to the builder. They will have time to address your concerns before a final walk-through. 


It is so important that you always share your feedback before you go through the closing. After all, once you sign the documents, the home and any issues you have found are now your responsibility and not the builder's. 


5. Title Search, Title Insurance, and Closing

One of the most important steps in buying a new construction property is the title work. You will want to team up with a highly skilled title company that has extensive experience in new construction properties. Although it can vary depending on where you live, you are usually able to choose your own title company so do your research and don’t just settle for the title company your builder suggests. 


The home you are building is new, but the property it is being built on is not. Therefore, you will want to have a thorough title search performed and invest in title insurance just in case. You will especially want to ensure they look for mechanic’s liens and contractor’s liens that may have been issued, ensuring that the title is free and clear when you take it over. 


Your title company will then walk you through the closing process. Money will change hands and so will ownership rights. 


You will be all set to move in. 


Get Title Insurance for Your New Construction  Home

At Blue Pointe Title Agency, we understand just how important title insurance is for any property —- including a new construction home. Working with our team of experts can allow you to feel confident with your purchase. 


Contact us today!

0 comments

Comments


bottom of page