Purchasing and building a new home is an exciting dream to realize. While renting is convenient when you know you’re only in the area temporarily, building a home is a worthwhile long-term investment for those who want to establish roots. The process of becoming a homeowner is different for everyone with a few similar milestones. If you’re a first-time home buyer, here are the major phases of new home construction you can expect:
Research
Establishing a few parameters before you begin looking for a new home can save you hours of time and frustration in the long run.
- Think about functional concerns like how many bedrooms you’ll need, the size of the kitchen you want, neighborhood amenities that are essential to you, and even if you want a large yard. All of these factors will help determine where to begin your new home search and which area communities can best meet your needs.
- Once you have these bigger questions answered, you can add to your list with design personalization options. Thinking about the floor plan options and types of finishes you’d like will help you decide which builder will best suit your needs as well as what your budget needs to be. With a house idea in your mind, it is easier to forward the personalized idea to the home builder for new home construction.
- Innovations in material and building techniques mean that there are more choices and opportunities for personalization out there. The right home builder should be adept at old, green living, energy efficient and contemporary designs, and still include your unique requirements in the final design. This should be accompanied by a comprehensive portfolio of past projects, design selections, and personalization allowance.
With proper liaising, you should be able to get a house design that feels like home due to the personal touches, as well as serves functionality through energy efficient installations such as innovative HVAC systems.
Financing
The elements in your research will determine the estimated cost.
- For those paying a full amount on the onset, you need to think about miscellaneous yet significant costs such as taxes, agent fees, appraisal and inspection, monthly taxes, utilities and such. Though seemingly insignificant on the onset, these amounts can prove to be significant in the long term.
- For those seeking a mortgage, you need to factor in the initial down payment, monthly payments, closing fees, attorney, and appraisal. Lenders recommend that you seek a new home construction that costs between three to five times the total household incomes. This ensures that you will be able to afford the payments.
A well-established home builder comes in handy in helping you get the best financing options. Do note that there are thousands of lenders out there, each offering different packages. Shopping around ensures that you get the right fit as per your financial status and requirements. Work on your credit score to determine your financing.
Professional Assistance
Professional assistance comes in handy, especially when moving into new neighborhoods. Seek a registered, well-established home builder with a proven record in your location of choice for guidance all through the buying process. An innate view of the area can help reduce the cost in terms of material and building technique choice, as well as balancing your dreams with the reality on the ground. This comes in handy, as it does reduce on grandiose expenses while ensuring you get the design of your choice.
Closing
This is usually the last step. Closing on a new home essentially brings together all parties concerned with the purchase. Do note that closing comes at a fee (usually between 3-5%) of the total loan amount; establish in advance as to who handles closing costs. Once the paperwork is complete, and the right ownership documents are in your possession, then the process is complete.
Are you building a new home? Share your stories in the comments below!
This blog post was written by Beazer Homes: Headquartered in Atlanta, Beazer is one of the country’s largest single-family homebuilders. Beazer homes meet or exceed the ENERGY STAR® energy efficiency benchmark for new construction, are designed with Choice PlansTM to meet the personal preferences and lifestyles of buyers, and provide preferred lender choices to facilitate transparent competition between lenders and enhanced customer service.
