FINANCING Most builders give incentives or closing costs if a buyer chooses to use the builder’ s lender. These loans may come with higher interest rates and most loans are locked in for a certain period after closing. Buyers are not able to refinance the home until that lock-in time has expired. That period can vary from six months to 24 months. Most builders do require that buyers complete a mortgage application with their lender to ensure the buyer is qualified to purchase the home. Compare rates with independent mortgage lenders and see if they will match the builder’ s closing cost incentives. You will want to understand when you must make your final decision on a lender.
BUILD TIME A custom home can take 6-8 months for permitting and another 6-12 months for the buildout. Larger neighborhoods built by national builders can range around 6 months. It is important to research the buildout time as they vary per builder and the level of finishing offered.
DURING THE BUILD PROCESS Visit the home often to ensure the home is built according to the contract you signed with the builder’ s sales representative. It is a good idea to have the home inspected by an independent home inspector during the pre-drywall stage and just before closing. Builders are under no obligation to correct items found on an independent inspection, however most builders will in good faith make alterations especially if they are related to building code compliance. It is also a good idea to have the home tested for radon. Read the builder’ s policy in regard to radon remediation as the responsibility varies greatly from builder to builder.
WARRANTY Become familiar with the warranties offered on the home. Usually, the warranties come in one year, five years, and ten years. For example, appliances may be one year, HVAC five years, and usually the structural components are warrantied for ten years. It is important to know the warranties and the process of submitting a claim. Most builders offer a one-year cosmetic touch up on nail pops, cracks, and other defects. It is important to wait until the first year is almost over to allow the home to settle completely. Builders will only make these cosmetic repairs once.
BUYER BEWARE New construction homes can be exciting, and it is enticing knowing you are the original owner. Before getting caught up in the new home smell, educate yourself and know that Georgia is a buyer beware state. It is a buyer’ s responsibility to research the home they are purchasing and evaluate the risk factors.