In Pennsylvania, property buyers must follow additional steps when they choose a new construction. These properties have different requirements than an existing property. The buyer may also face a few more restrictions when buying these properties. The following are the steps for buying New Construction Homes in Pittsburgh.
Secure Financing for a New Construction
The buyer must acquire a pre-approval for a mortgage loan. The buyer will need to review mortgage loan products that are available specifically for new constructions. The lender must assess the buyer’s earning capacity and assess their income-to-debt ratio. The lender must establish affordability before they offer a mortgage loan to these buyers. The pre-approval defines the greatest mortgage loan value available to the buyer.
Choose the Best Lot
Next, the buyer must choose a lot based on the highest mortgage loan value available to them. The builder will help them calculate the full cost of the construction and the lot based on their choices. The buyer must review any restrictions associated with the lot. For example, if the lot is located in a subdivision, the homeowner’s associated may control what floor plans are available to the buyer.
Select a Floor Plan or New Design for the Property
The floor plan or home design increases or decreases the full cost based on the buyer’s selection. The builder presents them with options with the complete cost including the purchase of the preferred lot. This helps the buyer make the right choice based on their budget.
Achieve the Requirements for the Closing
Before the closing, the buyer must acquire insurance for the property. The buyer must also provide the down payment and any earnest money required. The closing completes the real estate transaction. The funds are transferred to the seller, and the title is prepared for the new owner.
In Pennsylvania, property buyers follow more specific steps when buying new construction. These transactions aren’t the same as standard purchases. The buyer must choose a lot in their preferred location as well as a new home design. Buyers who want to start the process for buying New Construction Homes in Pittsburgh can click here for more information today.
