You've chosen your location, lot, builder and home design. Now it's time to make everything official.
Before construction can begin, buyers typically move through several important steps involving financing, the builder contract, final pricing and required permits. This stage turns your plans into an approved project that's ready for construction.
Understanding what happens now can help you stay organized, know what you're signing and prepare for the next phase of your new home.
If you're financing your new construction home, you'll work with your lender to finalize the loan process.
Depending on the type of home and builder, financing may involve a traditional mortgage, construction loan or builder-preferred lender. Some builders may offer incentives for using their preferred lender, such as assistance with closing costs or interest-rate options.
Compare the loan terms, interest rate, estimated closing costs and incentives rather than focusing on one benefit alone.
Your builder contract outlines the details of the home you're purchasing and the responsibilities of both you and the builder.
Review the purchase price, floor plan, structural selections, upgrades, deposits, estimated timeline, warranties and change-order policies before signing.
Make sure any agreed-upon selections, upgrades or incentives are documented in writing.
The advertised base price of a new construction home may not be the final amount.
Your total can include the lot premium, structural options, design-center upgrades, additional features and other builder charges.
Before moving forward, review an updated breakdown so you understand how your selections have affected the overall cost of the home.