Homebuilding Guide

Homebuilding Guide

At this stage, you should have settled the question of inventory or to-be-built home. You’ve done plenty of research and identified several builders in your preferred area whose homes you like and that fit your budget. You’ve toured the communities and model homes of those builders, and you’ve taken steps to get your finances in order. Now, it’s time to make some big decisions.

The Homebuilding Process

The steps you take to buy and build your new home vary from one builder to the next, but the process generally goes like this:

• Pick a community
• Pick a builder (if there’s more than one in the community)
• Pick a floor plan that best meets your needs
• Pick a home site
• Sign a purchase agreement or contract
• Finalize all structural options within ten days
• Finalize all other choices within thirty days

Location Options for New Homes

There are a lot of fantastic places where you can build your home, including:

• On your existing lot
• Master-planned communities
• Urban condominium developments
• Infill developments

Master-Planned Communities

These communities often feature:

• Multiple neighborhood styles
• Homes at various price points
• Long-term lifestyle flexibility

Shopping Tips for Choosing a Community and Builder

Photo Credit: Guilhermer Cunha from Unsplash

Key strategies include:

• Visiting model homes
• Consulting with sales professionals
• Researching builder reputations

“The best thing you can do is talk to people who’ve been through the process of buying a new home.”

Understanding Your Financing Options

Photo Credit: Sabine Peters from Unsplash

Major Loan Types

• FHA Loans: 3.5% minimum down payment
• VA Loans: No down payment required
• USDA Loans: Rural area financing
• Conventional Loans: 5-20% down payment

Key Financial Considerations

• Earnest money deposits (typically 1-3% of home price)
• Closing costs (2-5% of loan amount)
• Cash reserves (3-6 months of expenses)

Contract Essentials

Ensure your agreement includes:

• Detailed construction specifications
• Clear pricing breakdown
• Construction timeline
• Dispute resolution process

Final Checklist Before Signing

1. Review all included features
2. Verify upgrade costs
3. Confirm financing details
4. Understand warranty coverage

For more expert advice on buying and building a home, check out the free eBook download of New Home 101: Your Guide to Buying and Building a New Home at Pre-ConstructionHomes.com.