Making the Right Choices

10 Things NOT to do when looking for and building a new home

1. Do not assume buying an existing home is cheaper than buying a new home. The new home market is highly competitive. Plus, new homes generally have lower maintenance costs, and more energy efficient, safer, healthier and have a longer life expectancy than existing homes.

2. Do not underestimate the size home you will need. Consider how long you intend to be in the home. Then plan and anticipate any family or lifestyle changes that could affect today's decisions.

3. Do not go shopping for a new home without first having a firm idea of how much you can afford. Obtain a home loan pre-qualification or pre-approval from a reputable lender to determine a realistic price range for your new home.

4. Do no overextend your budget. Just because you are pre-qualified up to a given level does not mean that you will be comfortable with the required payments. Write down everything you have spent for a two or three month period. Then plan your total household budget.

5. Do not assume all home loan financing is the same. As the buyer of new home, you need financing that protects you against rising interest rates during construction. Ordinary home loans provide only a 45 or 60 day standard interest rate lock. You may need up to 6 months to build your new home. The bottom line is you should shop around and ask questions.

6. Do not assume that all the features you see in display homes are standard. Display homes usually contain many option. Ask for details.

7. Do no overlook the advantage of buying a union-built home. Union craftsmen receive extensive training while serving an apprenticeship under the supervision of an experienced hand. And they take pride in maintaining the quality reputation they have earned.

8. Avoid being adversarial or contentious with your builder. Because building a new home involves many details, good communication is important.

9. Do not rush your walk-through inspection or feel that you are being too critical when it comes time to check everything in your new home.

10. Do not miss the opportunity to enjoy the process. Track your new home's progress. Take pictures of it and the neighborhood as it is being built. Meet your new neighbors. Remember that you're not just buying a new house, you're building a home. Enjoy.