Chose to Build a New Home? Here’s What to Expect.

If you’ve chosen a home that has yet to be built, you have the opportunity to customize its design and features. Be prepared to make lots of decisions—some of them before you even sign the final contract.

Builders offer standardized floor plans which often come with options to add a study, extra bedroom, additional bathroom, built-out basement, expanded master suite or larger garage. You will make these decisions before the final contract is signed since they will affect the purchase price.

As construction progresses you will spend time in the builder’s showroom choosing wall colors, exterior finishes, floor coverings, appliances, cabinets and hardware. The list price of a new home includes standard appliances, floor and wall coverings, and finishes.

Any upgrades you make will increase the price. It’s a good idea to decide what features are most important to you so that you don’t exceed your budget. Designing and building the home of your dreams requires your commitment to the process, confidence in your builder, sufficient budget, tolerance, patience and vision. Selecting the right builder for you is very important.

If you are buying a home that has not yet been built, you may be eligible for a construction loan.  These are short term loans, generally interest only, which come due when you take occupancy of the home.  Construction loans are considered to be “story” loans because the lender wants to know all the construction plans before the loan is approved. Some construction loans can be converted to permanent mortgages once you move into the home.