How to Buy in New Construction

Five steps to owning a newly-built home

By Judith A. Stock and Karin Beuerlein, FrontDoor.com | Published: 6/20/2008

Compare the terms, fees, rates and points of at least two lenders before buying your home.

Step 5: Close the Deal

Builders often have in-house mortgage lenders or ties to an outside lender. New homebuyers can use the builder's lenders or find their own financing. Ask your agent for information on special funding programs available for first-time buyers. Contact at least two lenders and compare terms, fees, rates and points.

"You are committing 30 years of your life to the process of homeownership," says Messina. "Learn as much as possible about the mortgage process by reading everything you can find."

Kriss Lindblom did just that before he and his partner, Angela Diesner, closed on a Pulte-built home in Maricopa, Ariz., last year. "I read every piece of paper they gave me, every contract, disclaimer, declaration of covenants and restrictions, the bylaws of the community association."

"I sat there with a pen and paper and anything that stood out I called the sales associate and questioned it," Lindblom says.

If you're not comfortable with the legal process, get an attorney. Remember, sign nothing until you fully understand the meaning of the words.

<< Get an Inspection and Home Warranty I Buying in New Construction >>

GO TO: Part 1: Evaluate Your Life and Finances

GO TO: Part 2: Shop for a Loan

GO TO: Part 3: Find a House

GO TO: Part 4: Close the Deal

GO TO: First-Time Homebuyer's Guide

More on FrontDoor:

• Search Homes for Sale
• House Hunters Homebuying Guide
• Home Finance Guide
• Foreclosure Guide
• Moving Guide
• Tools and Calculators

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