Ignite FB Tracking PixelA basic guide to the new construction home-buying process - KIMBERLY KELLY

A basic guide to the new construction home-buying process

by KIMBERLY KELLY 08/15/2022

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

KIMBERLY KELLY

Kimberly Kelly decided to get her real estate license when she moved to South Orange with her family and fell in love with the classic, period homes of the area. Having worked in the city for many years for LexisNexis, Kim understands the appeal of an easy commute to NYC. That’s why she specializes in towns along the Mid-Town Direct train line, offering welcoming communities, good schools, and space to grow.

Very active in her children’s school PTA, Kim knows firsthand how important a school system is to parents looking to make the move to the ‘burbs. She volunteers with fairs, fundraising, and other activities that bolster support for education. Kim also believes involvement in the greater community enriches us all and has sat on various boards & associations throughout the years.  

Kim Kelly has lived many places throughout her life, from Pennsylvania to Oregon, but has found New Jersey to be the ideal place to raise her family and put down roots. She loves nothing more than helping others discover their special place as well. Kim’s extensive knowledge of the area, combined with her sense of community, offers clients a personalized guide to finding the right house - and town - to call home.