What do I need to know about building a new house?

Real Estate Agent with North Texas Top Team, REALTORS (Plano, Murphy, Wylie) TX Lic# 055794

Want to get EXACTLY what you want in your new home? Consider building a new house!

Now that you have decided to build your new house, here are some things you should consider. Regardless of building a custom home on your own land, or working with a builder in a subdivided neighborhood, you should hire a Realtor to help you navigate the process of building a new house.  

How long will it take to build my new house?
If you are building a new house, you will want to plan for at least 5-6 months of time before moving into your new house. Sometimes a builder will have a "spec home" availalbe that meets your needs, and the closing timeframe for a spec house can be shorter.  However, if you are building a home from scratch the generally accepted timeframe is 6-months.  This includes city approval to build that floorplan on the lot, the actual construction process, the finish out, and final walk through.

How much money do I need for a down payment on a new house?
If you are working with a builder in a subdivided neighborhood, you will likely be able to use any type of general mortgage loan product.  That means you can buy with 3.5% down using FHA financing, or you could buy with 5% down for a conventional loan. Of course if you put 20% or more down, you will avoid mortgage insurance.  However, if you are buying some land to build on later, you should speak with your lender about land loans. You may find a loan with interest-only for a period of time to keep the land cost low while you build. Then you can combine both the land and the home into your final loan product after construction. Many construction loans involve draws throughout the construction process.

I trust the builders contractors, do I need a 3rd party home inspection on a new house?
Hiring a professional inspector is something that we highly recommend when building your new home. While it is not required, it's certainly a good idea to have someone working for you to ensure that the home is built properly.  A home inspector will perform "phase inspections" where they inspect the home at various phases of construction to ensure things are done correctly throughout the entire process. 


Other things to discuss with your Realtor when building a new house:

Should I build a GREEN home? What does that entail?

Should I consider a SMART home?  What options are availalble?

What is the difference between copper pipes or PEX pipes?

Why should I consider Energy Star appliances?


If you are considering buying a newly constructed home, or designing and building from scratch in North Texas, rely on the professional agents at the North Texas Top Team, Realtors. You deserve to have someone on your side! You can read more about building a new house or feel free to call us at 469-759-3899 for more details.

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Melissa Hailey, Broker-Owner
REALTOR, CRS, GRI, SFR, TAHS, TREC-Approved Real Estate Instructor

North Texas Top Team, Realtors, LLC
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Comments (3)

William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Once you realize what you wnat and make the final decisions realize that it can take several months to be completed

Jan 20, 2019 04:20 PM
Melissa Hailey
North Texas Top Team, REALTORS (Plano, Murphy, Wylie) - Plano, TX
Collin County Realtor-Lucas, Murphy, Plano, Parker

That's right William Feela the timeframe to build is definitely long

Jan 27, 2019 06:18 AM