New Home Construction Buying Guide

New home construction is a growing sector of the housing market. Rising mortgage rates have been weighing on homebuilder confidence, but limited inventory of previously owned homes is steering buyers toward new construction. Builders are working to keep pace with demand, and prices are often more affordable than comparable homes in the resale market.

Can you talk down the price of a new construction home?

Before you start the process of buying a new construction home, talk to your lender to get pre-approved for a mortgage. This will help you determine how much you can afford to spend on a new home and eliminate any surprises down the road.

After getting pre-approved, it’s important to meet with the builder to discuss options and upgrades. Many builders limit the number of choices to avoid pricing out potential buyers, so it’s a good idea to come with an open mind and be ready to compromise.

If you’re considering a new construction home, consider talking to your lender about the option of rate locking. A lender can lock your rate for a few months before closing, which will protect you from fluctuations in the market and allow you to move into your new home without worrying about a potential rise in rates.

Another thing to remember is that you’ll need to find somewhere to live in between the time your house is built and when you close on it. This can be difficult during a hot market, and there’s no guarantee your current home will sell before your new one is finished.

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