2. Shop around for a mortgage lender<\/h2><\/div>All mortgage lenders are not the same. The builder may have a preferred lender, and that\u2019s a good place to start \u2014 but it\u2019s important to get preapproved<\/a> with more than one lender to see who is offering the best terms for your particular circumstances.<\/p>\nIn Del Real\u2019s experience \u201cyou should always shop around and get a different opinion, but if the builder is willing to give you a credit to buy down your rate and can get you better terms, I would lean on the credit from the builder.\u201d Essentially, he says \u201ctrust, but verify and get a secondary opinion just in case.\u201d<\/p>\n
Preapproval can take as little as one business day<\/a> once you\u2019ve submitted all of your documentation. Once you\u2019re preapproved, you can compare each lender\u2019s rates, terms, and closing costs.<\/p>\nThe mortgage company will pull your credit score, which could lower it temporarily, but depending on the credit-scoring model the lender uses, multiple credit checks within a short time frame may only be counted as one inquiry<\/a>.<\/p>\n<\/div>\n3. Research the builder<\/h2>\n
Be sure to do your research<\/a> on prospective builders. Look at their previous developments and find reviews about the neighborhoods and the building process itself. You can also do some general Google searches to see if you can uncover any lawsuits or bigger issues that could affect the work they do on their homes.<\/p>\nSome things to look for include:<\/p>\n
\n- The experience of past clients. Were they happy with the process?<\/li>\n
- Are there issues that keep popping up in different reviews?<\/li>\n
- Can you find information about their process and the materials they use?<\/li>\n
- How many homes and developments have they built?<\/li>\n<\/ul>\n<\/div>\n
4. Research the neighborhood<\/h2>\n
Once you\u2019ve narrowed down your builder and neighborhood options, do some digging into what your potential neighborhood has to offer. If the neighborhood is brand new and still being developed, look into what amenities you will have access to \u2014 a pool, parks, walking trails \u2014 and take a drive through the area to see what\u2019s nearby. Walk through the grocery store, stop at a coffee shop, and check out the nightlife (or daylife).<\/p>\n
If the neighborhood is already well established, get in there! Take a walk, take your kids to the park, chat with potential neighbors, and drive to your work from the area to see what the commute time will be. You can also use social media to dig even further into what neighborhood life is like. Check to see if the neighborhood is on Nextdoor<\/a> or if there\u2019s a Facebook page \u2014 though you may not be able to join either until you actually live in the neighborhood.<\/p>\nAnother aspect to look into is the neighborhood\u2019s homeowners association<\/a> (HOA). The HOA may have a website that you can refer to, or you can contact the HOA directly, to find out what the monthly fees are. Be sure to also take a look at the covenants, conditions, and restrictions (CC&Rs) to see what is allowed and what isn\u2019t. Some HOAs are stricter than others, so you want to be sure you know what you\u2019re getting into and what advantages they offer you as a potential homeowner.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/section>\t\t\t\r\n\t\t\t\t\t\n\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\tThe New Construction Home Buying Process, Explained\t\t\t\t<\/span>\n\n\t\t\t\t\n \n \t\n \t\tLearn more \t<\/span>\n \t\t\t<\/div>\n\t\t<\/a>\n\t<\/div>\n\t\n\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\tBuying New Construction for the First Time? Here Are the Dos and Don\u2019ts You’ll Need to Know Before Jumping In\t\t\t\t<\/span>\n\n\t\t\t\t\n \n \t\n \t\tLearn more \t<\/span>\n \t\t\t<\/div>\n\t\t<\/a>\n\t<\/div>\n\t\t\t<\/div>\r\n\t\t\t<\/div><\/div><\/div><\/section>5. Choose your lot \u2014 and be picky<\/h2><\/div>In any given development, there are different lots to choose from. When it\u2019s time to choose yours, pay close attention to:<\/p>\n
\n- The features of the lot.<\/strong> Some lots will be labeled or categorized based on what kind of home you are able to build on it<\/a>. For instance, a flat lot, a lookout lot, or a walkout lot.<\/li>\n
- How the home will be oriented.<\/strong> Is it facing the sunrise or sunset? What will the view be from the places you\u2019ll spend the most time?<\/li>\n
- How the slope will affect drainage.<\/strong> If the lot is sloped<\/a>, discuss the builder\u2019s plans for drainage to protect the home from flooding.<\/li>\n
- How close it is to the main road.<\/strong> Stand on the lot for a while to assess how much traffic passes by during any given time. If you prefer more privacy, choose a lot at the end of a cul-de-sac or at least further from the main road.<\/li>\n<\/ul>\n<\/div>\n
6. Choose your floor plan wisely<\/h2>\n
This is where the process starts to get exciting! When it\u2019s time to choose a floor plan, here are a few things to consider:<\/p>\n
\n- Current needs.<\/strong> Do you need an office space or a massive kitchen for cooking for large groups? How many bedrooms do you need? Do you want a finished basement?<\/li>\n
- Future needs.<\/strong> If you\u2019re planning on expanding your family, how much space will you need? Do you plan on having in-laws or your parents move in at some point in the future and need to consider accessibility? Are you building a business and need an office or workshop space?<\/li>\n
- Storage.<\/strong> Consider how much storage you currently have, and use that as a jumping off point for how much storage space you\u2019ll need in your new home.<\/li>\n
- Maximize your space and flow.<\/strong> If you\u2019re working with a smaller floor plan, consider an open concept to make the space feel larger. Do an imaginary walkthrough to see if the floor plan will suit your lifestyle.<\/li>\n<\/ul>\n
Often builders will offer standard floor plans with customization options or you can work with them to design a custom plan.<\/p>\n
<\/div>\n7. Read the fine print<\/h2>\n
When you ultimately choose a builder, a neighborhood, and are getting ready to sign a contract, be sure to read the fine print in any documents from your builder. Doing this will ensure you know what is included and what\u2019s not. Pay close attention to the details such as appliance packages<\/a>, lighting, and landscaping.<\/p>\nThis is where your agent<\/a> can come in handy \u2014 having someone on your team who understands these contracts will be your best bet for getting a great deal on your dream home.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/section>\t\t\t\r\n\t\t\t\t\t\n\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\tHere\u2019s What You Can (And Can\u2019t) Negotiate on a New Construction Home\t\t\t\t<\/span>\n\n\t\t\t\t\n \n \t\n \t\tLearn more \t<\/span>\n \t\t\t<\/div>\n\t\t<\/a>\n\t<\/div>\n\t
All mortgage lenders are not the same. The builder may have a preferred lender, and that\u2019s a good place to start \u2014 but it\u2019s important to get preapproved<\/a> with more than one lender to see who is offering the best terms for your particular circumstances.<\/p>\n In Del Real\u2019s experience \u201cyou should always shop around and get a different opinion, but if the builder is willing to give you a credit to buy down your rate and can get you better terms, I would lean on the credit from the builder.\u201d Essentially, he says \u201ctrust, but verify and get a secondary opinion just in case.\u201d<\/p>\n Preapproval can take as little as one business day<\/a> once you\u2019ve submitted all of your documentation. Once you\u2019re preapproved, you can compare each lender\u2019s rates, terms, and closing costs.<\/p>\n The mortgage company will pull your credit score, which could lower it temporarily, but depending on the credit-scoring model the lender uses, multiple credit checks within a short time frame may only be counted as one inquiry<\/a>.<\/p>\n Be sure to do your research<\/a> on prospective builders. Look at their previous developments and find reviews about the neighborhoods and the building process itself. You can also do some general Google searches to see if you can uncover any lawsuits or bigger issues that could affect the work they do on their homes.<\/p>\n Some things to look for include:<\/p>\n Once you\u2019ve narrowed down your builder and neighborhood options, do some digging into what your potential neighborhood has to offer. If the neighborhood is brand new and still being developed, look into what amenities you will have access to \u2014 a pool, parks, walking trails \u2014 and take a drive through the area to see what\u2019s nearby. Walk through the grocery store, stop at a coffee shop, and check out the nightlife (or daylife).<\/p>\n If the neighborhood is already well established, get in there! Take a walk, take your kids to the park, chat with potential neighbors, and drive to your work from the area to see what the commute time will be. You can also use social media to dig even further into what neighborhood life is like. Check to see if the neighborhood is on Nextdoor<\/a> or if there\u2019s a Facebook page \u2014 though you may not be able to join either until you actually live in the neighborhood.<\/p>\n Another aspect to look into is the neighborhood\u2019s homeowners association<\/a> (HOA). The HOA may have a website that you can refer to, or you can contact the HOA directly, to find out what the monthly fees are. Be sure to also take a look at the covenants, conditions, and restrictions (CC&Rs) to see what is allowed and what isn\u2019t. Some HOAs are stricter than others, so you want to be sure you know what you\u2019re getting into and what advantages they offer you as a potential homeowner.<\/p>\n In any given development, there are different lots to choose from. When it\u2019s time to choose yours, pay close attention to:<\/p>\n This is where the process starts to get exciting! When it\u2019s time to choose a floor plan, here are a few things to consider:<\/p>\n Often builders will offer standard floor plans with customization options or you can work with them to design a custom plan.<\/p>\n When you ultimately choose a builder, a neighborhood, and are getting ready to sign a contract, be sure to read the fine print in any documents from your builder. Doing this will ensure you know what is included and what\u2019s not. Pay close attention to the details such as appliance packages<\/a>, lighting, and landscaping.<\/p>\n This is where your agent<\/a> can come in handy \u2014 having someone on your team who understands these contracts will be your best bet for getting a great deal on your dream home.<\/p>\n3. Research the builder<\/h2>\n
\n
4. Research the neighborhood<\/h2>\n
5. Choose your lot \u2014 and be picky<\/h2><\/div>
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6. Choose your floor plan wisely<\/h2>\n
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7. Read the fine print<\/h2>\n