Building a new home is an exciting prospect. Many love watching their homes take shape, from pouring the foundation to hanging drywall.
However, the process has its challenges. Maintaining open communication with your builder and responding promptly to any issues can help avoid unexpected delays.
Buying the Lot
Buying a lot is the first step in building your new homes in Orlando. Locating the right piece of land may take weeks or even years.
Choosing the best location for your new home is critical to keeping costs low and increasing your resale value. You’ll want to ensure the property is located in a desirable area and free of hazards such as flooding or erosion.
You’ll also need to check that the land is free of liens, a legal claim against the property due to unpaid debts. It’s essential to clear these up before you start construction. You’ll also need to ensure that gas, water, sewer, and electricity services are available. If not, they’ll need to be installed by an outside contractor.
Designing the Home
Whether buying an existing home or starting from scratch, designing your new home is a delightful experience. It allows you to shape every home aspect to match your tastes and lifestyle.
Browse magazines, ride around neighborhoods, and visit websites for design inspiration. You can also visit model homes and open houses to see the different styles available in your area.
Before hiring a designer, ask for references and tour homes they have worked on. You should also find out how much involvement you will have in the design of your new home. Some designers prefer to delegate all decisions to their clients, while others are happy to consult with you at all stages of the design process.
Getting Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is the best way to determine what you can afford as a home buyer. It is also an excellent way to show sellers you are a serious buyer, especially in this competitive market.
Unlike pre-qualification, which is an unverified estimate of what you can afford, mortgage pre-approvals are based on an in-depth analysis of your finances. They’ll factor in your bills and credit history and provide a more precise estimate of how much you can afford to spend on a new house.
Securing mortgage pre-approval can take longer as the lender will need to do a more thorough credit check and review specific documentation. However, it is still an excellent option for those interested in new construction.
Getting Under Contract on Your Home
When you find a home that meets your requirements and is ready to buy, it is time to get under contract. The seller and buyer will work through their respective contingencies during this time. The sale can close on the home immediately if there are no contingencies.
Builders often require a certain percentage of the home price upfront before you can be considered under contract. Typically, this sum is kept in an escrow account and used as your down payment when the deal closes.
Your real estate agent can review your builder’s contract and help you understand any peculiarities. You should consider the payment schedule, construction timeline, and materials. To create a punch list of things that need to be completed before settlement, a comprehensive home inspection and final walkthrough are also advised.
Finalizing the Contract
After the design phase, your builder will create a new home contract. This document spells out the construction process and each party’s responsibilities. It will include the price you’ll pay, payment deadlines and customization choices, and the projected closing date. It also lists any potential profits from the home sale and how to calculate them.
Reviewing and understanding the contract before signing it is a good idea. Many builders spend hours studying the entire contract with their clients to ensure they know each item. This will lessen the possibility of miscommunications and mistakes. It will also help avoid penalties for missing deadlines or not meeting specific requirements.