How to Buy a New House

This article is about “How to Buy a New House” meaning one that has just been built or is under new construction. If you’re looking to purchase a home someone has already lived in, use the left menu navigation to find other pages of interest. For this article we’ll focus primarily on a new house that is being built.

How to Buy a New House

Here is a case where you get what you pay for, and in the case of buying a new house, if it is also new construction, you get exactly what you pay for. Buying a new house may allow the option of most or all choices. If the buyer is also building, or acting as the general contractor, this can include the location, the size of the lot, the type of house and every finish and fixture in it. Even if, on the other hand, new houses are being developed as part of a street or similar area, many choices are still available, although the house style and lot parcel will be limited. In either case, the new owner will be able to work with the builder and will even have access to the subcontractors, such as the electricians and plumbers.

Availability of contractors

In an unhurried economy, quality may increase, as contractors will generally be there when you expect them to be, rather than when they can finally get there – work it in. Also, when this is a new house under construction, you can plan your visits to the building site, calling ahead to make arrangements to meet with the contractors there at the site. For instance, you can stand in the kitchen area, and as you visualize where the sink and cabinets will be, make decisions on the lighting with suggestions from the electrician. You can plan the location of the washer and dryer; pick the shower design, such as the doors and trim, the tiles. If possible, plan well ahead to discover the possibilities.

Value

A well designed new home will have an intrinsic value set by the choices and creativity of the buyer (if a new construction) and the builder. The house will be unique, and with careful planning, some costs may be shifted when securing the loan and with an understanding of the financial aspects and legalities, the assessment, the inspection, etc. There can be nothing that compares to a successful plan of the place you will live in. Investigate all aspects and options from the design and the area of the dwelling, to the costs involved. It’s a huge decision – plan carefully and make it a wise one.

Financing New Home Construction

When constructing a new home, the financing is a bit different then purchasing a home already built. In most cases, you’ll need what is called a construction loan. A large bank specializing in construction loans, such as Wells Fargo, will have packages available. This package generally includes a construction loan with terms up to 12 months, with an extended lock on a pre-arranged mortgage. During the construction process, the buyer will generally pay interest, only an escrow will be set up to pay the builder.

Wells Fargo was only an example. When searching for “Brand New Home” financing, you’ll likely want to shop “in person” at the larger banks in your area. While the financing process is initially unique, once the home is built, you’ll have a mortgage just the same as someone who has purchased a home previously lived in.

For more tips on buying a home, home financing etc, continue to navigate our website using the left side menu.