Please note: this guide is general information, not legal, tax, or financial advice. Every situation is different. Talk with your lender, a real estate agent, and, when needed, a real estate attorney about your specific circumstances.
1. Before you shop
- Know your credit. Check your credit reports and correct any errors early. Your credit affects the loan options and rates available to you.
- Pre-qualification vs. pre-approval. A pre-qualification is usually a quick estimate. A pre-approval generally means a lender has reviewed your documents. A pre-approval gives you a much clearer picture of what you can afford.
- Budget for the whole picture. Beyond the price of the home, plan for closing costs, property taxes, homeowner's insurance, and any HOA dues. In Texas, property taxes can be a significant part of the monthly payment, so ask your lender to include them in the estimate.
- Keep a cushion. Leave room in your savings for moving costs, window coverings, landscaping, and the unexpected.
2. Choosing a builder
- Ask questions. How long have you been building? Who will be on site day to day? How will you keep me updated? What's included in the price, and what counts as an upgrade?
- See their work. Visit homes they've built, finished or under construction, and ask to talk with past buyers if you can.
- Understand the warranty. Ask what's covered, for how long, and how to request warranty service. Get it in writing.
- Read the contract carefully. Look at the payment schedule, timeline, allowances, and how change orders are handled. If anything is unclear, ask, and consider having an attorney review it.
3. During the build
- Walk the home at key stages. Ask your builder about walkthroughs, for example before drywall goes up, when it's easier to see framing, wiring, and plumbing.
- Keep communication clear. Agree on how and how often you'll get updates, and put important decisions in writing.
- Know the cost of changes. Changes after the contract is signed usually come through change orders, which can add cost and time. Get the price in writing before approving any change.
- Keep records. Save your contract, selections, change orders, receipts, and emails in one place.
4. Closing & move-in
- Get a third-party inspection, even on a new build. A licensed inspector gives you an independent look before closing.
- Do a final walkthrough and punch list. Walk the home with your builder, note anything that needs attention, and agree on when it will be completed.
- Collect your documents. Keep warranty information, manuals, paint colors, and maintenance guidance together for the years ahead.
Quick list: Do & Don't
Do
- Get pre-approved before you shop seriously
- Budget for closing costs, taxes, and insurance
- Read the contract and ask questions
- Get every change in writing
- Keep records of payments and decisions
- Ask about energy efficiency (insulation, windows, HVAC)
- Schedule a third-party inspection
Don't
- Open new credit cards or loans before closing
- Change jobs before closing without talking to your lender
- Buy furniture or appliances on credit before closing
- Make large deposits without documentation
- Skip the inspection because the home is new
- Rely on verbal promises: get it in writing
Frequently asked questions
Should I get pre-qualified or pre-approved?
A pre-qualification is usually a quick estimate based on information you provide. A pre-approval generally means a lender has reviewed your documents and credit. Sellers and builders typically take a pre-approval more seriously. Ask your lender exactly what theirs includes.
Do I need an inspection on a brand-new home?
It's a good idea. Even well-built new homes can have items that get missed. A licensed third-party inspector gives you an independent set of eyes before closing, and many buyers also schedule one before the builder's warranty period ends.
What costs besides the price should I budget for?
Plan for closing costs, property taxes, homeowner's insurance, and possibly HOA dues, utility connections, window coverings, and landscaping. Your lender can give you an estimate of closing costs.
Why shouldn't I open new credit before closing?
Lenders often re-check credit and employment before closing. New debt, a big purchase on credit, or a job change can affect your approval. Talk to your lender before making any major financial change.
What is a change order?
A change order is a written change to the plans or selections after the contract is signed. It can affect both cost and schedule, so make sure every change is in writing and you understand the price before work begins.
We believe a home is more than a building. It's where a family grows, gathers, and makes memories. If we can help you think through any part of the process, we'd be glad to.
