If you’ve thought about building a brand-new home, you’ve probably wondered how the mortgage process works. After all, you’ll be buying a home several months before you can actually move in. Will you be responsible for two mortgages at the same time? When do you need to apply for a mortgage for your new home? Is the process the same as it would be with a move-in ready home?
Every year, hundreds of Americans die due to electrical accidents called electrocution – death caused by electric shock. Sometimes electrocution happens in utility and construction incidents, but these tragic accidents happen in homes, too. Before the widespread adoption of GFCI (ground-fault circuit interrupter) outlets, around 800 people died annually in the United States. Now, thanks largely to the proliferation of GFCI technologies, particularly in areas near water, such as bathroom sinks or in places exposed to rain or standing water, that number has dropped to around 200 deaths per year.
Mortgages for brand new homes aren’t always as straightforward as mortgages for resale homes. Builders need funding to get started on a home build, but lenders are taking on a bigger risk when there’s no physical home to act as collateral. If the buyer backs out of the loan or the builder doesn’t finish the property, the lender is out a lot of money.
There’s no doubt that buying a new home is a complicated process. Luckily, the builder you choose has to do most of the hard work. They need to make sure their work meets building codes, order supplies to arrive at just the right moment, and make sure the entire process goes smoothly. Still, there are some things you’ll be responsible for when you purchase a home. Learn more about what you’ll need to do.