Buying a brand new home from a Builder is different than buying an existing home from a homeowner. There are a number of advantages to buying new construction besides just getting that “new home smell.” When buying a new build you get input on the design, layout, and color scheme along with the latest and greatest in energy efficiency and other neat technology. Plus your Homeowner’s Insurance is typically lower with new construction and you’ll have time to Sell Your Home and Plan Your Move.
The disadvantage of buying new construction is that you typically don’t know your closing date until about 45 days out which means your world may be in limbo with the fluid closing date. Without a closing date you can’t Lock Your Interest Rate on the new loan, and even worse, you may sell your current home too soon and have to move twice. (That said, someone could argue that if you bought an existing home you wouldn’t know your closing date until 30 days out which would give you even less time to plan.)
The biggest difference in the mortgage process with new construction comes in the form of New Construction Closing Costs and how the New Construction Tax Prorations are done. Aside from determining when you can lock and these aforementioned items, buying a new build from a builder is the same mortgage process as buying an existing home.
As always we’re here to answer any questions you may have about buying new (or existing) homes.