4 things to consider when building a new home

The building process is complex. If you're thinking about building your dream home in the near future here are FOUR things to know:

1. You may have to get pre-approved twice. Once when you initially offer on the home & once before you actually buy it. The build process can take a long time, the builder will want to see upfront that you can afford the home. Once the home is about 90 days out it will be time to start the mortgage process, at this point you'll need to apply again. Financial situations can change, a pre-approval is usually only good for 90 days, so the bank will ask you to re-apply at this time.

2. Builder timelines are variable. There's a lot that goes into building a home, it's not always possible to keep everyone on track. To add to that, supply and labor shortages have slowed the building timeline for many people. The key is to be flexible!

3. You won't actually buy the home from the builder until it is completed. The builder will hold the construction loan (unless asked otherwise) and remain the owner of the home until you close upon completion.

4. Most new construction homes (in our market) come with a 1 year builder warranty. If something goes wrong in the first year the builder will be happy to take a look at it.

These are just a few of the things to know when you're planning to build a new home, there are many more things to think about. Most people will only build their dream home once, so be sure to hire a real estate professional to help you through all of the steps.