25 ESSENTIAL QUESTIONS BUYERS SHOULD ASK BUILDERS
NEW CONSTRUCTION
What to ask when considering purchasing a new construction home:
- Loan Programs and Financing
- Warranties
- Upgrades and Customization
- Construction Materials and Energy Efficiency
- Build Process and Timeline
- Community and HOA
- Final Walkthrough and Closing
Loan Programs and Financing
- Do you have a preferred lender or financing program? Are there any incentives for using them?
- What is the required down payment, and are there any special financing options for new construction homes?
- Are there rate lock programs available to protect against rising interest rates during the build process?
Warranties
- What warranties are included with the home (e.g., structural, appliances, systems)?
- What is covered under the builder’s warranty, and for how long?
- Who handles warranty issues, and how are claims submitted?
Upgrades and Customization
- What is included in the base price of the home?
- What upgrades or customization options are available, and what are their costs?
- Can you provide a list of standard vs. upgrade finishes and features?
- Are there limitations on what upgrades can be added after construction begins?
Construction Materials and Energy Efficiency
- What type of materials are used for key components like the roof, foundation, and framing?
- Are energy-efficient features like windows, HVAC systems, or insulation included?
- Are there rate lock programs available to protect against rising interest rates during the build process?
- * Pre-construction work, like document preparation and permitting
- * Grading, site prep, and foundation pouring
- * Framing
- * Plumbing, electrical, and HVAC system installation
- * Roofing and windows
- * Insulation and drywall
- * Flooring, cabinets, countertops, and other interior features
- * Exterior finishing
- * Draining and irrigation
- * Appliances
- * Landscaping, driveway, and sidewalks
Build Process and Timeline
- What is the estimated build time for the home?
- How do you handle delays, and what happens if the completion date is missed?
- Can I visit the construction site during the build process? If so, how often?
- Who is my point of contact during the build process, and how often will I receive updates?
Community and HOA
- What are the HOA fees, and what do they include?
- Are there any Community Development District (CDD’s)? If so, how is it paid and what are the terms?
- Are there restrictions on renting or modifying the home after purchase?
- Are amenities like pools, parks, or walking trails included in the community plan?
- Are there plans for future development in the community, and how might that affect home values?
Final Walkthrough and Closing
- Will there be a final walkthrough before closing, and what should I expect during it?
- What happens if I find issues during the final walkthrough or after closing?
- Are closing costs included in the builder’s incentives, and what are they estimated to be?
- Are there post-closing services offered, like a concierge to help with setup or a follow-up inspection?
WHY HIRE A BUYERS AGENT?
When purchasing a new construction home, you might wonder if hiring your own agent is necessary since builders often have their own representatives to assist buyers. While the builder’s representative can provide valuable insights into the community, amenities, and construction process, their primary responsibility is to represent the builder's interests—not yours. Having an agent dedicated to advocating for you can offer peace of mind, especially if this is your first time buying a new construction home.
An experienced agent familiar with new builds can be an invaluable resource. They often have knowledge of local builders, their reputations, and the quality of their work. Additionally, they can help you navigate the unique aspects of a new construction purchase, such as understanding the contract’s contingencies, clauses, and other specific details.
If you choose to work with an agent, it’s essential to involve them from the start. Have your agent be the first point of contact with the builder prior to your first visit to the builder’s sales office. Some builders require this step to ensure the agent receives a referral fee. Having a knowledgeable advocate on your side can make the entire process smoother and more reassuring.
HILDA HERNANDEZ
Top 10 QUESTIONS TO ASK A LENDER
Here are the top 10 questions buyers should ask lenders when choosing the right fit. These can help buyers understand the lender’s offerings, the mortgage process, and any unique Florida-specific considerations:
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What types of loans do you offer, and which do you recommend for my situation?
Different loans (conventional, FHA, VA, USDA) have varying qualification requirements and benefits. A knowledgeable lender should recommend options based on the buyer's financial profile and goals. -
What interest rate can I qualify for, and is it fixed or adjustable?
Understanding interest rates, including the differences between fixed and adjustable rates, is crucial for buyers. Ask about current rates and what affects their eligibility. -
What is the estimated closing cost, and can you provide a breakdown? What are your lender fees?
Buyers should get a detailed breakdown of all closing costs, as these can vary by lender and location. Be sure to clarify which costs are negotiable and which may change. What fee does the lender/mortgage broker charge the buyer for their services? -
Do you offer any lender credits or assistance programs?
Many lenders offer programs, particularly in Florida, for first-time buyers or those with moderate income. Asking about these options can help reduce upfront costs. -
What is your process and timeline for pre-approval, underwriting, and closing?
In a competitive market like Florida, understanding the lender’s timeline is essential. A lender with a streamlined processncan help close on time and make a buyer's offer more attractive. -
What are the down payment requirements for each loan option?
Down payment requirements vary by loan type, often starting from 3% to 20%. The lender should discuss options that align with the buyer’s budget and goals, including programs for lower down payments if eligible. -
Are there any penalties for prepaying or refinancing the loan?
Some lenders have prepayment penalties, which could be restrictive if the buyer plans to pay off the mortgage early or refinance later for a lower rate. -
What’s the minimum credit score for approval, and how does my score affect my rate?
Credit score requirements can differ significantly, and rates often correlate with the borrower’s credit score. Buyers should understand how their score impacts their options and costs. -
How will you communicate with me throughout the process?
Clear communication is key. Buyers should know if the lender provides updates via email, phone, or a digital platform, especially if they prefer a specific communication style. -
Do you work with local real estate agents and know the Florida market?
Lenders familiar with the Florida real estate landscape and local agents may offer more tailored advice. Their experience with local closing customs and any unique regional issues can make a big difference.
These questions can empower buyers to find a lender who fits their needs while feeling more secure and informed throughout the lending process.
