Understand the lot and infrastructure
Ask about utilities, drainage, site work, fill, driveways, sewer versus septic and any separate impact or connection fees. A low advertised home price may exclude improvements necessary for the property to be livable. For a newly constructed home, the lender may need specific completion documentation.
- Confirm the precise lot and floor plan
- Get written responsibility for site costs and utility connections
- Review flood and drainage information before paying deposits
Protect yourself on builder deposits
Builder agreements can use deposit rules different from resale-home contracts. Know when deposits become nonrefundable, what changes are permitted, and what happens when construction or financing is delayed. Ask an appropriate real estate or legal professional to interpret the contract.
- Track each deposit and due date
- Understand inspection and financing contingencies
- Document all promised incentives in the agreement
Inspect the finished product
A new-home warranty is not a substitute for a third-party inspection. Schedule inspections at contract-allowed stages and obtain final walk-through documentation. Confirm insurance, certificate of occupancy and lender condition clearance before planning a move.
- Ask about independent inspections
- Check change orders and punch-list items
- Confirm final insurance and lender requirements
Official information
Terms, loan rules, funding and eligibility can change. These references are for education; always confirm the current written terms with the appropriate agency and lender.
CFPB: buying a home ↗