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.
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Back to...
- First-Time Homebuyer's Guide: Main Page
- Part 1: Evaluate Your Life and Finances
- Part 2: Shop for a Loan
- Part 3: Find a House
- Part 4: Close the Deal
