The Process of Purchasing New Construction: Steps One and Two
Nov 08, 2022 brooklyn,Brooklyn Buyers,Brooklyn Buyers Agent,brooklyn real estate,buyers agent,Buying in Brooklyn,buying into brooklyn,first time homebuyers,realty collective
Buying new construction in Brooklyn is complex but completely doable. We help people succeed in this task every day. One of the best resources you can have is an agent who can help you learn the ins and outs (and special considerations) of new construction — especially when it comes to financing. In the meantime, here are the first two steps to take in the process of purchasing new construction:
Step 1: Finding a Mortgage Lender for New Construction
A quality mortgage lender is the place to start when you’re thinking of buying any type of home, including new construction. You will want someone who is experienced, has good reviews, and is easy to contact (yes, sometimes on evenings and weekends!).
But how do you find them? First, you could use someone you know and trust. Maybe a family member had a great experience with a lender in the past.
Second, you could ask your realtor for recommendations. Realtors cannot legally receive a profit from referring clients to lenders, so you can trust that they’re sharing a contact because they truly believe the lender is one of the best. They likely have experience working alongside that lender and know they’re knowledgeable and responsive.
Step 2: Questions to Ask Once You Start Looking at New Construction Homes
Once you receive your preapproval and you begin the new house hunt, there are several factors to keep in mind. Consider asking the following questions for every new build you’re serious about:
- Has the builder been sued? You can look into the project’s sponsor, as well as the contractors’ credentials.
- What other homes have they built?
- Do they have good reviews from past homebuyers?
Offering Plan Questions:
- Make sure your attorney reads every detail, so there are no surprises in your home.
- Is landscaping included?
- Will any of the neighboring homes be used as rentals?
- How much will utilities cost?
- Where will building managers be stationed?
- Outside date — If the build isn’t completed on time, when will your down payment be refunded?
- Price — can you negotiate the price with comparable homes and market trends?
- Concessions — can you get help with closing costs, taxes, storage, or an extra parking space instead of locking in a lower price?
- What will be available? Gyms, pools, spas, etc.?
- When will these places be in operation?
- Will prices rise due to changes in amenities after moving in?
- Can you see a model apartment?
- What will your exact layout be?
- What will you be able to see out your windows? Off your balcony?
- Will soundproofing measures be taken?
Rules and Regulations:
- Are you allowed to rent your space to others?
- Are there other restrictions?
All in all, new construction is an excellent opportunity, as long as you ask the right questions, Start by getting that lender referral and mortgage preapproval, and then head out to see your future home. Ask as many questions as possible to ensure you’re purchasing the right place, even before it’s fully built!
If you’re interested in learning more about the buying process, download our free Buying Into Brooklyn Ebook. We share a ton of valuable resources to demystify the buying process and help you become a Brooklyn home-owner.