Buying a single family home is often a bit different from buying a home that has been lived in before. Often, you start paying for the home before it is fully constructed. You work with the builder to ensure the home is finished to your liking. Since there is a lot involved with this process, you can probably use some advice! Here are some tips and tricks for a smooth experience.
1. Work with a bank that collaborates with the builder.
Technically, you have the right to work with whichever lender you choose when you buy a home from a building company. But things will typically go more smoothly if you work with a bank that is used to collaborating with your builder. Ask your builder which lender they recommend. If that lender does not offer you as good of a rate as other lenders, see if you can negotiate the rate down. When you work with a lender that your builder already has an established relationship with, the two will work together more seamlessly and with less input from you.
2. Hire an agent.
You might think you do not need a real estate agent when buying directly from the builder. It is certainly possible to buy without an agent, but it's not a great idea. The seller, who in this case is the building company, pays the commission if you hire a real estate agent. So there's really no reason not to take advantage of this perk. Your agent can help review the terms of the sale, keep up with calls from the lender, and arrange the closing schedule with your attorney.
3. Keep a close eye on your budget.
It's common for costs to creep up little by little when you buy a new home. The builder asks which counters you want, you choose one of the higher-priced options, and suddenly you're borrowing another $2,000. This happens a few times, and before you know it, your $200,000 home is a $250,000 home. To avoid overspending, set a budget from the very beginning, and check that budget with every single decision that you make. Do make your budget clear to the builder, too, so they know not to recommend upgrades that will put you over the limit.
With the tips above, the process of buying a new home will be a lot easier for you. Talk to your builder to learn more.