How To Buy A New Home...
In 10 Steps or Less

If you are in the market for a new home, the process may seem complicated and a little confusing.  However, by doing a little planning and decision-making, the experience can be enjoyable! 

 

1. Start with research. 

Attending the Home Builders Association's 2007 Parade of Homes will be a good place to begin.  Each house featured is built by a professional builder, who is a member of the Home Builders Association of Fayetteville. Through the Parade, you can learn more about the latest housing features and building techniques.  At many homes, you will have the opportunity to meet the builder or his or her representative, who can help answer specific questions about the new home.

 

2. Decide what type of house you want. 

Begin by listing features that match your lifestyle.   For example, do you prefer a one-story home or multiple levels?  You may want an open kitchen, a formal living room or a great room, a recreation room or a functional bonus room. Would you prefer a large yard, small yard or no yard at all? Visit many homes to decide what suits your needs.

 

3. Getting your Mortgage Pre-approval. 

There is nothing more disappointing than selecting a $250,000 home and learning that your price range is closer to $100,000.  Getting your loan pre-approval letter is the first step.  Contact a reputable banker or mortgage lender.  Choose a lender and set-up an appointment.  At your appointment, discuss the various loan programs, mortgage payments, interest rates and closing cost expenses.  The lender will require some of your personal information.  This is a crucial step before signing a contract.

 

4. Shopping for a new home. 

When examining a new house, look at the quality of the construction features.  Inspect the quality of the cabinetry, carpeting, trim-work and paint. You will want to ask about what type of customer service or any warranty protection the builder offers.  Many builders back their own warranties on workmanship and materials, typically for one year.  Other builders may offer extended warranties backed by an insurance company.  You will want to know what is included in such warranties.

 

5. Select a neighborhood.  

Location is a key consideration when buying a home.  Identify whether an area meets your needs.  Do you prefer the convenience of the city or solitude of the country?  If getting to work quickly is a priority, drive to work from an area and back after work to determine peak traffic flow.  Also consider schools and daycare facilities, police and fire protection, frequency of trash collection, and potential noise factors.  Talk to people in the neighborhoods you are considering, to find out if they enjoy living there.

 

6. Sign the purchase agreement. 

Once you find the home you want, you will be expected to place a deposit on the house and sign a purchase agreement.  This is your chance to identify all the features and options you expect in your new house.  Get as many specifics as possible in writing. Read the purchase agreement carefully to be sure you understand and agree with all the terms associated with the purchase.  Be prepared to provide your pre-approval letter from your lender.

 

7. Secure a mortgage.

Become educated in the lending process.  Contact your lender to identify the best interest rates and program for you.  Rates can change daily.  After your contract is signed, your lender can lock your rate and begin the loan process.

 

8. Prepare for the "walk-thru." 

The time to identify any problems in your home's construction is during the walk-thru. Your builder would rather be aware of problems before settlement, rather than three months later.  Ask how to care for all interior and exterior surfaces, and the plants used in landscaping.  Make certain that you collect all owners' manuals for appliances.

 

9. Complete the settlement process. 

Commonly called the "closing," settlement passes ownership of the home from the builder to you.  During settlement, buyers must sign numerous legal documents, prepared by your lender.  There will be an attorney available to “represent” you and the lender.  If you do not understand a document, do not hesitate to ask. At closing, be sure you have copies of the sales contact and all settlement documents.

 

10. Resolve post-move problems with your builder. 

Homes are not built under factory conditions.  Because of this and because of the natural processes that occur after a new home is built, certain routine adjustments may need to be made during the first year.  If you do have a problem, always talk to your builder first and give him or her a chance to make corrections.  Put your concerns in writing, specifically identifying the problem, its location, and when it occurs. Most builders honor the quality of their work and will be happy to remedy the situation.

 

Above all, don't forget to celebrate your purchase.  Buying a new home is one of the best investments you can make and will provide enjoyment and good times for years to come.

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