Start Your Search
Once you have thought about the type of house you want, where should you look for a builder? First, make a list of builders who build the type of home you're looking for in your price range. The real estate section of your newspaper is a good place to start. Looking through the ads and reading the articles can help you find out which builders are active in your area, the types of homes they are building, and the prices you can expect to pay.
 
 
Take a Look Around
Once you have a list of builders, how can you find out about their reputations and the quality of their work? The best way to learn about builders is to visit homes they have built and talk with the owners.

Ask builders on your list for the addresses of their recently built houses, subdivisions, townhouses, or condos. Builders may even be able to provide names of some new homeowners who would be willing to talk with you. Drive by on a Saturday morning when homeowners may be outside doing chores or errands. Just introduce yourself and say you are considering buying a home from the builder who built their home. Visit several owners, and try to get a random collection of opinions. The more people you talk with, the more accurate impression of a builder you are likely to get. At the very least, drive by and see if the homes are visually appealing. Look at homes that are like the style you plan to buy - for example, if you are interested in a two-story home, look at two-story homes rather than split levels.

When you talk to builders and homeowners, take along a notebook to record the information you find and your personal impressions about specific builders and homes. Doing so will help you to make comparisons later. Some questions you can ask people are:

Are you happy with your home?
Did the builder do what was promised in a timely manner?
Would you buy another home from this builder?

Usually, people tell you if they are pleased with their homes. And if they are not, they'll probably want to tell you why.

Ask Questions About Service
One important criterion for selecting a builder is the warranty provided on the home. Most builders offer some form of written warranty. Many builders back their own warranties on workmanship and materials, typically for one year. Other builders offer warranties backed by an insurance company. Ask to see a copy of the builder's warranty. Although reading legal documents is tedious, read the warranty to understand what protection you would have. Don't wait to read it until after you move in and a problem arises. If you have any questions about the coverage, ask the builder.

Also, find out from each builder what kind of service you can expect after the sale. Typically, a builder makes two service calls during the first year after you move in to repair nonemergency problems covered by your warranty. The first call is usually 30 to 120 days after the move-in, and the second is around the eleventh month - right before any one-year warranties on workmanship and materials expire. For emergencies, the builder should be able to send someone to your home right away.

Some other questions you might ask builders are:

• How long has the company been in business?
• Whom do you contact for customer service after the sale? Should requests be in writing?
• What responsibility does the builder assume for the work of subcontractors? Who will be responsible for correcting problems with major appliances?
• Does the builder belong to the local builders association (affiliated with the National Association of Home Builders?)
• Does the builder use state-of-the-art energy features? Equipment, insulation, design, and landscaping can all affect a home's energy efficiency. 
 

Shop for Quality and Value
Look at new homes whenever you can. Home shows and open houses sponsored by builders are good opportunities to look at homes. Model homes and homes displayed in these shows are often furnished to give you ideas for using the space. You may also ask a builder to see unfurnished homes.

When examining a home, look at the quality of the construction features. Inspect the quality of the cabinetry, carpeting, trimwork, and paint. Ask the builder or the builder's representative a lot of questions. Get as many specifics as possible. If you receive the answers verbally rather than in writing, take notes. Never hesitate to ask a question. What seems like an insignificant question might yield an important answer.

Always keep value in mind when shopping. Just because a home is less expensive than another does not mean it is a better value. Likewise, a more expensive home does not automatically assure higher quality.

A home is primarily a place to live, but it is also an important investment. Consider the appreciation potential of any home and the possible future influences that location, housing supply and demand, and other market factors will have on the value of your new home.

Another important aspect of value is design quality. When you look at a home, determine whether it will suit your lifestyle. Is there enough living space? Are there enough bedrooms and bathrooms? What about storage space? Will you have room to accommodate special interests or hobbies - for example, a large kitchen for casual entertaining, or a room for a home office or exercise room? Think about the amount of upkeep required both indoors and out. Consider also the location of the property. Is it convenient to transportation, shopping, schools or other places of interest to you?

Buying a new home is one of the biggest and most important purchases you will make in your lifetime. By doing your homework, you will be able to shop for a home with a sense of confidence and the knowledge that will help you make the right decision.

If you have additional questions about selecting a builder, the home builders association in your area can help you find the answers.
 
 
An Investment in Your Good Credit
It makes sense to figure out how much you can really afford; you may be surprised at how far your dollars will go when invested wisely. Your builder or agent can help direct you to resources that will help you determine your home buying power, and may even be able to help arrange financing.

When you shop for a mortgage loan, lenders will want to be sure you can make the payments each month. They will examine your credit record, the extent to which you are already in debt, and your employment record.

Current homeowners can usually make the downpayment on a new home with the equity they realize from the sale of their old one. Buyers entering the market for the first time often rely on savings or assistance from relatives to accumulate a downpayment.

Where to Go for a Loan
After you select a suitable home in your price range, you will want to investigate your options to find the best financing. Your builder may be able to help recommend a source or even help arrange financing. Among places to look are savings and loan associations and commercial banks, mortgage bankers, mortgage brokers, credit unions, and housing finance agencies.

Ask Questions!
Ask yourself a few basic questions as you start shopping for a new home. Examples:

What kind of neighborhood are you looking for?
What kind of lot are you looking for?