While the process may take a bit longer than buying an existing home, buying a new construction home gives you the unique opportunity to create a space that’s tailor-made for you and your family. If you’re curious about how long this process takes and what to expect along the way, this guide will walk you through the timeline of buying a new construction home, from securing financing to moving into your new build dream home!
Selecting a Community and a Home Plan (2-4 Weeks)
When buying a new construction home, you’ll first choose the community or development you want to live in. Most homebuilders offer different floor plans, options, and upgrades. During this stage, you’ll visit model homes, tour communities, and work with a sales consultant to determine which home fits your needs and budget.
Once you’ve made your decision, it’s time to sign the purchase agreement. This step can take anywhere from a couple of weeks to a month, depending on how long it takes you to finalize your preferences and the builder’s availability for appointments.
Begin the Financing Process
Once you’ve found a floor plan and signed your new home’s purchase agreement, you can begin the financing process with Pulte Mortgage. After completing a quick questionnaire, you will meet your Pulte Mortgage Loan Team who will help you find the right financing program to fit your needs.
The Pulte Mortgage team has spent decades simplifying the financing process for new home construction and they can ensure your lending experience is as seamless and enjoyable as possible. Check out this video to gain a better understanding of how we make the financing process as streamlined as possible!
Home Construction (6-12 Months)
The most significant difference between buying a new construction home and an existing home is the construction timeline. If your home is being built from the ground up, the process can take anywhere from six months to a year. If you want to move in sooner, but you still want the benefits of a new construction home, a quick move-in home could be a great option! These are homes that the Builder has built within the community prior to being sold. Either way, communication with your builder will be essential to staying informed on your home’s timeline.
Mortgage Finalization (1-2 Months)
During the construction process, you’ll work closely with your mortgage lender to finalize your loan. This is where having a mortgage company that is familiar with the builder’s process can be especially beneficial! An experienced mortgage company can help to ensure that all the necessary documentation is in order and that the closing goes smoothly.
Once your home is closer to completion, your lender will review updated financials and request any additional documentation to ensure that nothing has changed since your initial pre-approval. This process typically takes one to two months leading up to your loan’s final approval, ensuring you’re ready to close once the home is complete.
Home Inspections and Closing (1-2 Months)
Once your new construction home is built, the final stages include inspections, a final walkthrough, and the closing process. You’ll work with the builder to conduct a home inspection and make sure everything is up to your standards.
At this stage, you’ll also review the loan terms with your mortgage lender, finalize closing costs, and sign the necessary paperwork. Typically, the inspection and closing process takes about one to two months, depending on the builder’s timeline and the complexity of the loan.
Why Does Buying a New Construction Home Take Longer?
When compared to purchasing an existing home, buying a new construction home can take longer for several reasons:
- Customization: Many buyers choose to customize their homes, from selecting countertops to designing their outdoor space. Customizations add time, but the end result is a home tailored specifically to your needs.
- Construction Delays: Weather, supply chain issues, and local permitting processes can all impact the timeline of your home’s construction. While builders do their best to stick to the proposed schedule, these variables can cause delays.
- Mortgage Timeline: Mortgage lenders may need to check your financial status several times throughout the process, especially if construction takes longer than expected. This helps ensure you still qualify for the loan when it’s time to close.
How to Prepare for a Longer Timeline
Since new construction homes often have extended timelines, here are a few tips to keep in mind:
- Stay Organized: Keep all your financial documents in one place and be ready to update your lender if any changes occur.
- Budget for Delays: Construction delays happen, so plan for the possibility that your home may take longer than expected.
- Maintain Good Financial Habits: While waiting for your home to be completed, avoid making large purchases or taking on new debt. These could impact your mortgage approval.
While buying a new construction home may take longer than purchasing an existing home, the benefit is that you’ll have a brand-new space, customized to your liking, without the need for renovations or repairs. By understanding the steps involved and preparing for potential delays, you can enjoy a smooth and exciting journey toward owning your dream home.
Ready to start your homebuying journey? We’re here to help guide you every step of the way as you finance the home of your dreams.
