Actions You Must Take Before Purchasing a Newly Built Home

Actions You Must Take Before Purchasing a Newly Built Home

If you are planning on buying a new construction home, there are several things that you must keep in mind. One of the most important things is ensuring you are well-informed about your home-buying process. It would help if you considered such things as the resale value of the house and whether or not the builder has a mortgage company. Another thing to look into is the warranty offered by the builder.

Mortgage Company

The mortgage company you choose will make a difference in buying a new construction home. If you want the best financing, working with someone who knows the ins and outs of new construction home-buying is a good idea.

Before you sign the dotted line, you’ll need to get pre-approved for a mortgage. This can help you avoid designing a home that you can’t afford.

You’ll also need to find out if there are any pending lawsuits against the builder. Some contractors offer in-house financing, which can provide significant benefits to buyers.

A builder’s preferred lender can streamline the process and make buying a new construction home easier. They’ll also offer a rate lock until the construction is complete.

New construction loans are more standard than resale mortgages, but they are a viable option. You’ll be able to pay for a home in stages, with the construction loan releasing advances as the work progresses.

When the construction is complete, you can move into the new home. Many lenders can offer financing on this type of home. However, you will need to shop around for the best rates. If you are prepared to purchase a home, you might want to consider the new homes in Nashville, TN.

Builder Warranties

When considering buying a new construction home, it’s essential to understand what is covered in the builder warranties. It can provide peace of mind and protection for you as a homeowner.

Most builders offer a basic one-year warranty. Some offer extended coverage on specific systems. You may also consider purchasing a separate homeowners warranty.

Typically, a builder’s warranty covers essential appliances, cooling, heating, and plumbing. The warranty will also protect against structural defects. However, it is not guaranteed to cover the cost of repairs.

Some builders purchase warranty plans from third-party companies, which is a good option. However, they have mixed reviews.

In the case of a significant settling, you may need to get an opinion from a structural engineer. However, the majority of building projects run smoothly.

Homeowners should understand how to make a claim and what to expect when fixing a problem. They should be sure to keep all correspondence with the warranty company. Also, take pictures of any damage.

Ask your builder to find out if your home is covered by a builder’s warranty. He will give you a document describing the coverage. 

You may want an independent home inspection a few months before the warranty expires. This will allow you to see any problems with your home and decide whether to file a claim.

Resale Value

The resale value of a new construction home depends on several factors, but location plays a significant role. Buyers want to be in a desirable neighborhood. They also wish homes with a functional layout to be move-in ready and in good condition.

New construction is also more energy-efficient. In addition, most appliances come with a warranty. These features will increase the resale value of a home.

You can find new construction homes that are move-in ready and in widespread neighborhoods. 

While a brand-new home may be more expensive, it is worth the investment. In fact, the resale value of a new home is five to ten percent higher than a comparable 10+-year-old resale home.

Many homeowners choose to build their own custom homes. This option offers more flexibility than buying a pre-built home. Plus, it allows you to design a home that fits your personal style.

As with any investment, the resale value of your new construction home will depend on several factors. 

If you want to purchase a new construction home, it is essential to do your homework before deciding. Check the internet and speak to friends and family to learn more about the pros and cons.

Walk-Through With The Builder

The walk-through is a crucial part of buying a new construction home. It is a chance for you and the builder to inspect the house, learn about its features, and discuss any concerns.

At the walk-through, you should ask a lot of questions. This way, you can learn more about the house’s features, layout, fixtures, and systems. You should also ask if there are any issues or repairs you need to make before moving in.

It would help if you prepared a checklist to keep track of any repairs you need to do. These repairs should include items that need to be fixed, the costs, the timeline, and the home warranty information.

A blue tape walk-through is one of the most essential parts of a new home’s building process. During the walk-through, you and the construction representative will look at every surface and note any problems. For example, the representative may place blue painter’s tape over the issue if the windows are missing a screen or the doors aren’t caulked.

When ready to move into your new home, you should ask the builder about his warranty policy. You’ll want to know if certain maintenance items may void your warranty.

Besides the checklist, you should bring a notebook to record any notes. Also, a camera and flashlight help check the construction and fixtures.