New Home Buying Process
Select Neighborhood
- Drive around the neighborhood
- Check out the facilities of the community
- Check out the amenities - shops, parks, hospitals etc.,
- View model open houses and check on quality of the homes
- Ask existing home owners about their experience
- Verify HOA fees, rules and restrictions
- Research the zoning laws of the neighborhood
Decide Builder and Model
- Usual more than 1 builder(s) in a new neighborhood
- Each builder have their Plans/Layouts with different costs
- Research and Choose the Builder
- Based on Budget, Plan/Layout you like, choose Home Model
- Understand what is included in the base cost
- Clearly put in writing the cost of the Extras/Upgrades
- Upgrades could be to Kitchenettes, Cabinets, Paint Colors, Stone Works etc.,
Financing
- Financing a new home is little different than used homes.
- Financing for a new home is a 2 Step Process
- Construction loan while the home is being built
- A mortgage loan after the construction is completed.
- Most builders provide the construction loan themselves
- Buyer may choose Construction loan from outside lender
- Check your realtor to get details on financing new homes
Phase Inspection Process
- Inspections detect major construction defects
- Have Third-party inspector to avoid conflicts of interest
- Standard 3 phase inspection process recommended
- 1st prior to concrete being poured (Pre-Pour)
- 2nd prior to interior walls and insulation (Framing)
- The final inspection after home is complete (Final)
Get Punchlist
- Documents items not conforming to contract specifications
- Prepared near the end of a construction project
- Listed Work must be completed prior to final payment
- Must include a plan for completion
- The list could include any minor repairs to finishes, cleanup, and any outstanding installations remaining
- In some cases, the punch list will also include final additions to scope with new last minute details
Closing
- Closing Date is based on home’s expected completion date
- Happens usually at the office of the Title company
- Closing agent will coordinate the time for closing
- 2 days prior Closing, Closing officer send closing statement to all parties involved
- Various documents are signed by all responsible parties
- Example of documents - Deed, Mortgage, HOA etc.,