What to Look for When Buying New Construction Homes

Buying new homes has never been easier for first time home buyers. New construction has always been the more expensive option when it comes to home purchase, but that has definitely changed in the last several years. New construction homes are now priced much lower than even traditional "hand" built homes. If you want to know what it will cost you to buy a new home, check out the current market and see how low you can get before lenders change their rules again.

There are many ways to find the lowest prices on new home construction. Probably the most effective way is to talk to your local real estate agent. Real estate agents have access to lower cost builders and they know how to get the information to their clients. Another option is to go online. There are now several online communities of home builders where buyers can get first hand information and discuss what components they would like in their new home.

One of the most important things you need to know upfront when buying new home construction is whether or not you are going to need a mortgage. Even if you don't have a mortgage, most builders require you to have a buyer's or seller's permit so you can start construction. This permits the builder to not only inspect your new home, but also to start negotiations with your chosen preferred lender for a new home loan. Without a mortgage, the builder cannot legally do any lending until you have obtained your permit.

Once you've found your preferred builder for Auburn new home communities for sale, don't forget to find out what kind of track record the builder has. It is important that you choose a builder who has experience working with the kind of materials you are looking for. If you are buying prefabricated homes, you should also inquire more about the manufacturer's track record for the particular brand and style of house you are considering. Good home builders will be more than happy to provide you with a list of references that you can call and check out. Call each one and check out their work history before you make any decisions.

Another important thing to know upfront is whether you are going to be paying a lot or a little for your new construction home loan. New home loans come in two varieties: fixed-rate and adjustable-rate loans. A fixed-rate loan allows you to get the exact value of your property; there are no surprises when the economy goes bad or if interest rates drop. An adjustable rate loan is a more flexible option; the interest rate may go up over time, depending on the lender's policies. However, most adjustable rate loans require some type of down payment. Shop around to find the best deal before you sign on the dotted line - shop around, compare lenders, and get the best deal you can.

The inspector's report is probably the single most important piece of information you need to look beyond a builder's website and into his or her realtor's files. It gives you insight into the quality of the builder and his or her staff. It is also important to look beyond the report and ask the lender and the home inspector to explain their findings. A good realtor will be happy to oblige, especially if they believe their client wants to move in quickly and is comfortable with the inspection process.

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