Have you been thinking about buying a new construction home? Before jumping in, take some time to learn the ins and outs of buying and building a new home. Keep reading for an overview and some tips to kick off the process.
Figure Out What You Like
Touring the Parade of Homes is an excellent way to figure out what you like. There are hundreds of new homes to explore, making it easy to check out different floor plans, price points, and neighborhoods. It’s also a chance to connect with potential builders for your new construction home.
Meeting with a mortgage lender to get pre-approved has two major benefits. First, it helps you understand what you can spend. Second, it can help you make an offer quickly, which can be especially important in today’s housing market.
Make a Budget
One of the most essential parts of homeownership is knowing what you can afford. Make a budget that outlines your monthly income, expenses, and savings, and determine how your expected mortgage fits into the equation — and don’t forget to include any anticipated home maintenance and upkeep costs.
Now is the time to determine the type of community and neighborhood you want to build in. While exploring, pay attention to neighborhood amenities, nearby offerings, and access to schools, work, and major roadways.
Connect With Builders
Connect with your top builders to discuss their building process and potential timelines. This is also a great time to ask questions about their previous developments or if there have been common problems building a home in your neighborhood. Ask for references before committing so you can get unbiased feedback about what it’s like to work with them.
Design Your Home Plan
If you’re building a custom home, you’ll likely work with an architect or designer to create a floor plan designed around your lifestyle. Other builders may have you select from a portfolio of existing floor plans that can be modified to suit your needs.
Sign the Final Contract
With the home plan finalized, it’s time to commit! The final contract will include important details, so it’s crucial to review it carefully. Pay attention to whether the total cost is included or if it is dependent on allowances that will be adjusted after you’ve made your design selections.
Make It Your Own
Now comes the fun part! The design selections you make will vary depending on the type of new construction home. Building a totally custom home means you’ll have a hand in picking every element, while a semi-custom home will have slightly fewer design choices. If you’re buying a spec home, where the builder is in the building process will dictate how much say you’ll have in the design choices.
Construction can begin once your design selections are all set. Reach out to the builder or project manager for progress updates or questions about the build. If you want to stop by the construction site, touch base with them first so they can ensure it’s safe to do so.
Once construction and the final walkthrough are done, you’ll meet with your mortgage lender and the builder to finalize the paperwork and take ownership of your new home. To make the process go as seamlessly as possible, make sure to bring all the documents you need, as well as funds to cover any closing costs.
It’s all been leading to this moment. Construction is finally done, the paperwork has been signed, and you’ve received your new keys. All that’s left to do is move in — welcome home!
Searching for home inspiration to design the home of your dreams? Browse the photo galleries and find builders & designers in the Twin Cities here.