The Road to Close
- Select a REALTOR® and sign a Buyer Agency Agreement & Consumer Notice.
- Determine your new construction budget, get pre-approved and start your dream home wish list.
- Start looking for lots! Lot locations can shift the new construction process depending on it’s a subdivision ($), correction of typography ($$), and need to develop land ($$$). Take into consideration that some lots have exclusive builders, builder of choice, or need a developer approved builder. Your REALTOR® will help you with these details based on your lot preference and search.
- Interview home builders. Have your pre-approval amount and dream home wish list ready. This will help determine if your criteria can fit in your lot location. Also see our ‘20 Questions to Ask Your Home Builder’ for suggestions while interviewing the home builder.
- Once you’ve selected your home builder it’s time to start the architect plan. This usually takes a couple of weeks and can be held indefinitely in case you need more time to find your ideal lot.
- Once the lot and builder are selected you will start the process of purchasing the lot and executing the build. Below is a snapshot to complete the process of building your dream home.
- Make offer on your ideal lot and finalize purchase contract.
- Complete loan approval. New construction loans are harder to get approved because they offer more risks to the bank, need more money down, but usually offer a quicker closing.
- There are six scheduled draws to fund the new construction project. For each draw the owner, builder and the bank will have to sign. The owner typically has to pay an interest on the draws. Make sure you understand this process with your mortgage lender and bank.
- Once the lot purchase has been closed, the deed will be recorded.
- A mechanic lien on property will be filed. This protects the buyer so subcontractors are paid without penalty. In other words, it shifts the responsibility to the owner of the lot instead of the builder.
- Next the builder will secure all permits needed to initiate the build. Your builder functions as the general contractor making sure the construction runs smooth and on time.
- Watch the construction proceed!
- An occupancy permit from the township will be acquired and the property will be inspected for any code violations.
- Once all inspections have passed, the final draw is scheduled with the bank, builder and owner.
- Builder will hand over the keys and it’s time to move in!
- A final assessment will be made and recorded and then it’s time to celebrate your brand new custom dream home! Congratulations!
If you're interested in new construction, please contact Marsha for a personal consultation.