If you have decided you want to buy a new construction home, you still have plenty of decisions to make. There are good and better ways to go about buying any type of home. The same is true for new construction homes. Just follow these five home buying tips, and it will help make sure you buy the right new home for you.
Get Backing from your Bank First
Before you even look at the new construction homes in the area, get pre-approval for your loan. That way, when you find the house you really want, you will be able to make a valid offer. When you get pre-approved for a loan, you will know how much money the bank will allow you to spend on your mortgage. Not every homeowner/buyer is willing to spend the full amount, but at least you will know how much money is available.
The House That Jack Built
Just because a newly constructed home is new does not mean it is well built. It is always a good idea to look into the builder's background and find out more about the company that built the house. The reputation of the builder is everything. Make sure the company is on firm financial standing so they do not go out of business and leave you with a home that needs changes or repairs and no resources.
Location, Location, Location
If you are looking at new constructions in a certain area, make sure you understand what the neighborhood is like. Check out the other houses in the area and make sure it is not on a floor plain or another undesirable stretch of land. Listen for cars and see if you can hear the highway nearby. . Location is a big part of how well you will like your new home.
Pick a Type, any Type of Construction
There are many different types of newly constructed homes and you will need to decide which one is right or you. Spec homes can be great deals because they were built in hopes that they would sell. The builder needs to get the home off their hands. You may, however, not get to choose the interior and exterior options, depending on how far along the building process is when you make the purchase. Pre-construction homes are those that are for sale before they have been built. There are several other types available as well.
What's the Governments Cut?
You will need to understand what taxes you will have to pay on the home as well as what home warranties come along with a new construction home in order to fully understand what you are getting into.