There are many things to consider when building a new home and often the first thing our customers say is, “I’m not sure even where to begin!” So, we wanted to give just 5 simple options to consider as you begin your journey.
In the beginning phase of building a new home there are a few steps we recommend to research. First, it is important to understand your overall budget. A pre-approval from a lender can be a great first step to creating a budget for your new home! As you begin to understand your budget, you can then move forward by creating your wish –list, choosing your builder and more.
Here are just a few things to think about as you begin:
1. Get a pre-approval- Meet with a qualified lender. Lenders often have different mortgage programs that will work with an owner’s specific needs or situation. Gather the financial data the lender asks for and you will be on your way. The pre-approval process usually takes about 48-72 hours. The pre-approval letter from the lender shows that you are pre-approved for a certain loan amount. The loan amount will be underwritten at a later point in time to obtain your final loan approval. The underwriting process uses additional Items such as an appraisal, verifications of income or funds available for down payments will be used to obtain your final loan approval. Once your loan has been underwritten and approved your closing can be completed. Home shopping with a pre-approval letter lets any potential builder or builders know that you are serious about building your new home.
2. Make your wish list-Gather ideas of how you want your new home to look. Make a list of the items that you really want in your new home both for the inside and the outside as well. Cabinet and Countertops, Appliances, Paint Colors, and Flooring are great places to begin. Your wish list for the inside can help determine the wish list for the outside.
A great resource for you and your builder is to create a Pinterest board for all your ideas.
3. Prioritize your wish list- Prioritizing will help you become more realistic about your choices. Begin with non-negotiable items first, rating each one on a scale of 1-10 (one being the least and 10 being the most). Then arrange the order of your non-negotiable items based on your rating. Next step is to list your wants and desires and rate them using the same 1-10 system. Now list them in order as well. This will be helpful as you begin to shop for your home builder.
4. Builder pricing and specifications-Many times, builders will price a floorplan based on a set of specifications or standard features they will include when building a home. When interviewing a builder, it is a good practice to ask for this information. This will help you determine which builder can match all or most of the items on your wish list and your budget. Get everything in writing for your peace of mind and comparison shopping (comparing the information you received with what best fits your needs).
5. Choose your Builder-after completing comparison shopping, take the additional steps of getting references, checking out reviews online for your top two choices. In the end the decision is yours and we wish you the best!
If you are looking for help with any of these steps - Email us at firstname.lastname@example.org and we will be happy to help.