New construction home-buying process: The basics

by Tracey Lizza 08/07/2022

The new construction home-buying process differs from the buying process for an existing home. While many of the steps are similar, new construction homes come with more specific requirements.

Here is a basic step-by-step guide to the buying process for a new construction home:

Create a budget

With new construction homes, you have to account for your ongoing expenses while the home is still being built. Whether this means your current home expenses or temporary residence, it’s crucial to plan your finances before you get started on the process.

Get a construction loan

Getting preapproval for a mortgage loan is a common early step in the home-buying process. Buying a new construction loan requires getting a construction loan. These loans can have different requirements depending on where you’re building your new home.

Find a real estate agent

While it might seem like new construction doesn’t require help from a real estate agent, hiring your own trustworthy agent can help you when working with a builder.

Real estate agents should also be involved to help protect you from any uncanny legalese or process questions.

Research builders

If you have not already found a prospective home builder in your area, it’s time to research your options. Be prepared to ask about their experience in the area and with your particular style of home.

Choose your features

New construction homes usually have different timelines and pricing based on the level of customization you want. The three main types of construction are custom, semi-custom and spec.

Hire a home inspector

Hire your own home inspector to examine your new construction home when it’s finished. This will make sure you’re getting an unbiased opinion on the home condition.

Close on your new construction home

For new construction, closing day is the day you’ve finished all of your financing documents and the home is physically ready for move-in. It’s a good idea to establish regular checks on the building process before the day arrives.

Buying new construction can have many benefits over buying an existing home. However, it’s important to know the differences in terms of process. Keep these steps in mind when preparing for your own home-buying experience.

About the Author
Author

Tracey Lizza

 TRACEY LIZZA - Buying or selling a home is more than just a transaction: it’s a life-changing experience. Tracey is dedicated to providing exceptional, personalized service with total discretion for all of her clients. She takes great pride in the relationships she builds and always works relentlessly on the client’s behalf to help them achieve their real estate goals. Tracey places a high value on responsiveness and availability. She works with her clients every step of the way whether they are buying, renting or selling. A career as a real estate professional has been a perfect fit for Tracey. She has had a varied background in the marketing communications field including having worked in the international fashion industry as a buyer for over a decade. Combined with a personal selection of residential and commercial properties, Tracey brings her expertise along with firsthand experience. Tracey and her family enjoy the Shoreline lifestyle of Southeastern Connecticut and have garnered great pleasure volunteering and being active in her community and children’s schools. Tracey interests include gardening, fishing and boating. 

Contact Tracey and let her help you move in the right direction 

CAROL GESSNER - As a full-time Realtor I have the knowledge you need to get your home sold or find a new one. I am highly dedicated to bringing you customer service that exceeds your expectations. You can expect nothing less than superior professionalism and integrity from me. I have lived in southeastern Connecticut for 35 years. I grew up here. I have a connection to this community and the people who call it home. When I'm not helping my clients, I enjoy gardening, cooking and traveling. My true passions in life are my husband James, and our kids Nicholas and Nola. 

 Let me know how I can assist you in buying or selling and exceed your expectations!