Buying a New Home

Every once in awhile people ask when they can get on the priority list for a new home development and how the buying process works. Unfortunately unless you have a connection to the builder or developer (I will refer them as builder in this thread) you can not get ahead of the game. The best way to get notified of a specific development is to register with the builder. They will send you email updates on the project status and when they will start the pre-qualification process. It would be good to already pre-qualify with a lender prior to home searching to see what the maximum loan and thus maximum home purchase power you have. The pre-qualification is typically done online and depending on the builder you may or may not have to submit supporting documents (paycheck, tax return, etc). It is actually counter productive because most of the time the pre-qual process is done way ahead of the phase/price release so you are risking a drop on your credit score for something that you don’t even know you want or can afford. When the assigned mortgage broker or sales person contacts you to confirm the receipt of submittal you can ask them for the ballpark of the house prices. The builders typically schedule private tours to the top pre-qualified buyers prior to the official Phase 1 release. Don’t forget to bring and register a broker that can kick back most of the broker co-op to you. Most builders offer fixed broker co-ops that are typically proportional to the home price, more so in the buyer’s market. If you know someone who works for the builder then you can get ahead because in every phase release the builder typically allow certain percentage of the homes to be pre-sold to friends or family. The rest of the process would be to attend a phase release (or via phone), put a deposit, qualify for a mortgage (if applicable), select upgrades at the design center, select an insurance company, do walk-through/inspection and escrow closing.