It’s important to understand the costs associated with building a home and stay prepared for unexpected expenses. Items for your new home checklist include:
- What you can afford — Speak with a few lenders to ask questions and find out how you can obtain the best interest rates. You should also understand the costs of the home you’re interested in. Because prices for new homes range from $80 – $200 per square foot, it’s important to rank your desired features in order of importance. Talk with your builder to learn about all the options. Try to find lower-priced comps when possible.
- Credit report — Make sure you order your credit report prior to applying for financing. Check for any errors that may exist.
- Down payment — Consider how much you can realistically put down as a down payment.
- Mortgage options -- Take the time to learn about various mortgage options – fixed rate, variable, 15-year, 30-year, FHA and traditional. Determine which would be the best option for your financial situation. Obtain prequalification or preapproval from your chosen lender for a mortgage.