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How Does Buying a New Construction Home Work

November 8, 2023

How-Does-Buying-a-New-Construction-Home-Work

Buying a New Construction Home: Your Comprehensive Guide to Making the Right Choices

Congratulations! After diligently saving your hard-earned money, you and your family are finally ready to begin the exciting journey of buying a home. This is an opportunity you’ve worked towards, but now you face a huge decision: should you buy an existing home or fulfill your long-held dream of owning a newly constructed home?

While the process of buying an existing home is a topic widely discussed and understood, purchasing a new construction home often leaves many people uncertain. How does buying a new construction home actually work? To alleviate any confusion and make life easier for everyone involved, we’ll take you through the step-by-step process of buying a new construction home, ensuring you have a clear understanding of each stage.

Step 1: Get Pre-Approved for a Mortgage

One of the initial steps in the home buying process, especially for a new construction home, is to secure a preapproval from at least one lender. This preapproval determines the amount of money you are eligible to borrow based on factors such as your income, assets, and credit score. It sets the foundation for your budget and enables you to make informed decisions.

Step 2: Hire a Trustworthy Real Estate Agent

Before diving into the process, it is essential to enlist the expertise of a reliable and knowledgeable real estate agent. At Mantle, our experienced agents will be by your side, providing guidance and support throughout the purchase of your newly constructed home. Having an expert to navigate the intricacies of the process will significantly reduce stress and ensure you make the best choices.

Step 3: Decide on the Construction Type

Once you have a trusted agent to assist you, the next step is to determine the type of home that suits your preferences and needs. There are three common options when it comes to new construction homes:

  • Custom Homes: These homes are tailored to your exact specifications and lifestyle. Collaborating with a builder or developer, you have the opportunity to design a home that fits your unique requirements. From selecting floor plans to choosing finishes and features, you play a central role in creating your dream home.
  • Tract Homes: Tract homes are typically part of a larger development or community. Builders purchase large tracts of land and construct similar homes with a limited number of floor plans to choose from. While you may have less customization options, tract homes often offer affordability and a faster construction timeline.
  • Spec Homes: Speculative or “spec” homes are built by builders without a specific buyer in mind. Builders purchase a small parcel of land, construct one or two homes, and then put them up for sale. These homes may offer a balance between customization and a quicker move-in process.

Step 4: Decide on the Perfect Location

Choosing the location of your new home is another crucial step. Consider not only the overall area but also the specific placement of rooms within the house. Visualize where you want the bedrooms, kitchen, living spaces, and other essential areas to be located. Communicate your vision and preferences to the contractors and builders, as they can work with you to bring your ideal layout to life.

While navigating the process of buying a new construction home, it’s important to keep in mind key factors such as available homes for sale, potential closing costs, financing options such as construction loans, and the benefits of energy-efficient features. Take your time to explore your options, consult with professionals, and make informed decisions that align with your goals and aspirations.

At Mantle Realty, we understand the significance of this milestone and are committed to providing you with exceptional service. Our team of experts is here to guide you every step of the way, ensuring your journey to homeownership is smooth and rewarding. Contact us today to start your exciting adventure of purchasing a new construction home

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ABOUT MANTLE REALTY

Mantle Realty is a leading independent real estate firm based in the Triad of North Carolina. Mantle is passionate about providing clients with  cutting edge technology and hometown service, whether they are buying or selling a home.

Many of Mantle Realty’s agents have lived in the areas they serve their entire lives, and love turning their clients into their neighbors. With offices in Greensboro, Lexington, and Welcome, Mantle is equipped to cover all of the Triad with convenience and care.