When purchasing a resale home, the process is straightforward: run around town viewing the listings you’re interested in, choose one house that suits your needs, make an offer, and purchase. You’ll likely still need to renovate or make some changes to that home.
With a newly built home, the process is very different: you’re in the driver’s seat from the start, and you can create your ideal home in your desired neighborhood. Everything is brand new and suited to your specific needs.
Here’s how the process will work.
Choose Your Community And Your Homesite
When you decide it’s time to purchase a new home, you probably already know what general area in which you want to live. Seek out your desired communities and check out the home sites that are available.
Most builders’ websites contain this information and will display the available sites you can choose from, but you can also contact the builders to obtain availability information. Working with a realtor is another great way to find home sites scattered around town.
Consider subscribing to our “Homesite Review” monthly newsletter where we take a closer look at some of the homesites available for sale around South Charlotte and the lake areas. We also include off market lots that you won’t find online in the newsletter.
When choosing your lot, keep in mind the lifestyle you’re looking to create.
- Will you spend a lot of time in your yard and prefer to be south-facing?
- Do you prefer a water feature or green space?
- How many neighbors are situated around you?
The home you wish to build also plays a role in choosing your homesite, as the home’s size must fit the lot properly for the overall neighborhood design. Keep this in mind and ask your builder any questions you need to ensure you’re choosing the best site for your new home.
I Have My Own Site, How Does That Work?
Great! You can definitely build your new home on a site you already own. If you already own your land, working with a builder to construct your ideal home is one step closer. This does depend on the home builder though, as not all builders can or are willing to build anywhere. You’ll need to do your research and check with potential builders to see if they can give you what you’re looking for.
If you are looking to acquire your own homesite and hire a builder to construct your home, it’s best to enlist a home builder early in the process to ensure that the site you choose will work for the home you want to build.
Design Your New Home
This is where your dreams really spring to life! Not only have you determined the location of your new home, but you’ll be able to start to envision your life in that home.
You’ll work with a professional designer to craft the floor plan to suit your unique needs, exploring how you intend to live in the home and what features will work for you and your family. Your designer will work with you on the number and placement of bedrooms, bathrooms, storage space, entertainment areas, and anything you have on your wish list to make your ideal home a reality.
You’ll also create the finished look and feel of the home with your specific selections of colors, finishes, and materials, all supported by the professional designer. Items like cabinet styles, countertops, and flooring will be part of this stage in the process. Don’t be afraid to get creative with feature walls and ceiling treatments; these choices can significantly enhance your design.
Mortgage Approval and Down Payment
In order to move forward with the construction of your home, you should plan for a minimum of 10% deposit is required at this stage. This deposit is applied against the closing expenses of your home, but it ensures there is a commitment from both yourself and the builder to move forward with the project.
While there are situations where you may need more or less for your deposit, to be safe, our recommendation is to make arrangements for a deposit of 10%.
If you aren’t already pre-approved for your mortgage, now’s the time to set yourself up for success. Obtaining your mortgage pre-approval early in the new home process ensures that when your home is ready for possession, you’ll have no issues closing on the purchase.
If you have questions about the financial aspects of your new home purchase, be sure to ask your builder for assistance. Their team is qualified to help you with your financial questions and put you in contact with the right mortgage lender for your needs.
You’ll still need to obtain a full mortgage approval at closing, so it’s important that after you have your pre-approval documentation, you don’t change anything about your financial situation. Applying or obtaining new credit prior to closing on your new home can adversely affect your ability to qualify for your mortgage.
Construction Of Your New Home
Once all of the previous steps have been taken, construction on your new home begins. Throughout the process, you’ll be provided with walk-through opportunities to see your home at varying stages of construction and to ensure everything is being built as expected. Feel free to ask questions along the way; your builder should be your partner in building this dream, and they want to provide you with the home you’ve always wanted.
The build time on your new home will take anywhere from several months to a year or more, depending on the complexity of the project. Your builder should update you on the status and anticipated completion date.
Once your home is ready for possession, you’ll be provided sufficient advance notice so that you can plan for movers, utility hookups, and other such tasks.
When building a brand-new home, your builder is your guide throughout the sales and construction processes. Communication is key in this relationship; asking questions along the way is the best way to remain informed and on track with your new home.
