New home construction

Published 04/13 2007 10:47AM

Updated 04/13 2007 10:47AM

Preparing for new home construction can be easy if you consider the following procedures. The first involves devising a budget and arranging financing. Set a realistic budget that you can manage. Think about how much money you need for the down payment and how much you can afford in monthly mortgage payments. Once you've determined how much you can afford to spend, you need to obtain financing. Set up meetings with several lending institutions to find out about available financing options. Choices include lot loans, construction-to-permanent loans, and builder/developer financing. In addition, have the lender explain interest rates and the difference between adjustable-rate and fixed-rate mortgages to see which best meets your financial goals. After you've selected financing and obtained pre-approval, shop for a community. Ask yourself what you'd like to have in a community. Tour several areas during different hours and on different days, to find out what goes on in the neighborhood. Make sure the homes are generally of the same size and style of that which you want for your own home. Find out if the area is fairly well established or if there are plans for future developments. Narrow your choices and choose a builder. You may be working with the builder for up to a year, so interview at least three and choose one that you can communicate honestly and openly with. Find out how long the builder has been in business, ask to see work samples, and check references. In addition, find out how often you can visit the site and how the builder handles inevitable changes in construction. The final step is to choose your floorplan. Your builder can offer a wide variety that can likely be altered to meet your needs, or you can design your own. Make sure that it incorporates all the elements you want, blends with the characteristics of the lot, and meets community requirements.

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