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  • Writer's pictureRebecca Richardson - Mortgage Consultant

Is a New Construction Home The Answer For You?

In a tight inventory market like we're in, people are weighing all of their options of how they can find a home. So whether it's going to be a resale home or new construction.

In today’s article, we’re going to explore what it means to go the new construction route for you and your home buying journey.

Let’s start off with the pros of going the new construction route.

When you build your home, you are the first ones to live there, and make memories there, to walk on the carpet and to sit in the bathtub. The other reason people come to new construction is because they want the choice of incorporating trendy design options. Also new construction offers safety and security when something goes wrong in terms of warranty.

New Construction does come with some drawbacks.

If you’re on a tight time frame, new construction can be difficult because some builders won’t have inventory that they can close in 30 to 90 days. Additionally, other times you're looking at the build time so for any particular community that could be 4 months to 12 months.

Also, new construction may not always be the less expensive option because of the perks it comes with for the homeowner.

From a loan perspective, the way that I tell people that new construction is that it's kind of like you have a first half and a second half. So during the first half, you’re under contract. We go ahead and do disclosures, verify income, assets, etc.

From the lender's perspective, we are putting a pin in the file and so what we are waiting on is to be within about 30-60 days from completion. Because at that point, we’re pulling a new credit report, we’re ordering an appraisal and we’re getting documents updated and those kinds of things.

From a builder’s perspective, the closing date can vary.

Pre-pandemic times and post-pandemic times are important here. Pre-pandemic, most builders felt comfortable setting a closing date 30-45 days prior to closing. Post-pandemic we’re running into unbelievable delays in windows, or some of the final touches that we have on homes that are pretty much done inside but they could be waiting for that one window. So I am finding now that builders are making a commitment a little bit tighter so in that two week to 30 days mark.

Now, what should you look for in a builder, beyond just the reviews?

Start with the builder’s reputation. What is the reputation in your city? Because that's where you're building your home.

Next, figure out if the builder stands behind their product after the sale. Who's gonna be there and answer your calls after you've moved in, after the funds have been transferred.

Based upon the product that they show you, most times in the form of a model home, you're going to choose a builder that meets your needs as far as the product line is concerned too.

Buying a construction is a great option but it’s important to work with your realtor to help you navigate the process so you're getting a great deal.

You have many options when it comes to choosing a lender. So make sure you are confident in their abilities to get you the right mortgage, at the right price, specifically for a new construction home.

For more home buying and mortgage strategies, you can contact me by emailing ( or finding me on Instagram (

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