The new construction home-buying process

by Renee Marie Jordan 03/13/2022

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

Renee Marie Jordan

Renee Marie Jordan is a Third Generation Realtor®, who started out her career in residential lending. Jordan Real Estate was established by her grandmother, Jean Kotwitz, who was one of the first female real estate brokers in Solano County! The company was then passed down to her mother, Diane Jordan, over 40 years ago. Renee Marie then took over the company 24 years ago and in 2015 joined forces with RE/MAX Gold.   

Regarded as one of Northern California’s most dependable brokers, Renee Marie has gained industry respect for creating a successful brokerage company. Renee Marie’s unique blend of negotiating expertise, innovative thinking and belief that the client always comes first, has resulted in an extensive client base with many satisfied homeowners. Renee Marie specializes in residential sales, first time buyers, short sale properties, luxury properties, investment properties, foreclosures, 1031 exchanges, and has been the HUD specialist for Solano County since 2009.   

Renee Marie gets to the heart of her clients wants and needs. She attributes a great deal of her success to the many referrals she receives from clients who appreciate the care and thoughtfulness she puts into every transaction. Friends and family members can count on the same excellent service when they are referred to Renee Marie.