Buying a New Construction Home Made Simple.
Buying your first new construction home is one of the most exciting milestones in life, but it can also feel overwhelming. New words, new processes and big decisions can make the journey seem complicated or intimidating at first.
The good news? You don’t have to be an expert to become a homeowner.
You just need the right guidance. This Q&A breaks down the homebuying process into clear, easy to understand steps, explaining common terms and what to expect along the way. Just straightforward answers to help you feel confident, informed and empowered.
WATCH A QUICK OVERVIEW OF THE NEW CONSTRUCTION HOMEBUYING JOURNEY,THEN EXPLORE ANSWERS TO THE QUESTIONS FIRST-TIME BUYERS ASK MOST.
YOUR QUESTIONS, ANSWERED.
Everything you need to know before signing on the dotted line.
Getting started
Understand what new construction means and how to begin your homebuying journey.
What does “new construction” mean?
A new construction home is a home that has never been lived in before. With new construction, you choose the homesite (lot) and the floor plan you want to build. Depending on timing and availability, a new construction home may be:
- Already built and ready to move into, or
- Still under construction, allowing you to choose finishes, colors, or upgrades
What is the first step in buying a new home?
The first step is getting pre-approved with a lender. This tells you:
- Your maximum buying power
- What your estimated monthly payment will be
- That you are a serious, qualified buyer
Pre-approval helps make the buying process smoother and faster.
Is buying new construction complicated?
NOT AT MINTO! It can feel overwhelming at first, but you are not doing it alone.
You will have:
- A New Home Sales Professional explaining each step throughout the process
- A Construction Superintendent during the build of your new home
- A lender guiding your financing
- A MasterCare Representative after closing on your new home
- Clear timelines and support from contract to closing
The goal is to make the process simple, transparent, and stress-free.
Financing your home
Key terms to know when planning your budget, mortgage, and monthly payments.
What is a contract deposit, and why do I need one?
A contract deposit, sometimes called an earnest money deposit, secures your home and locks in your purchase.
- It is paid upfront when securing your home and signing the purchase agreement
- It is applied toward your down payment or closing costs
- The amount varies depending on the type of financing
Think of it as reserving your home while it is being built.
What is a down payment?
The down payment is the portion of the home’s purchase price you pay at closing when you finalize your mortgage.
- It is driven by the loan type you select, such as FHA, VA, or conventional financing
- It is paid at closing
- The remaining balance is financed through your mortgage
- Your lender will help identify the best option for you
What is a mortgage?
A mortgage is a loan used to purchase your home.
Most buyers:
- Put money down through a down payment
- Borrow the remaining balance from a lender
- Repay the loan monthly over time
Your New Home Sales Professional will share information about a FREE refi program offered.
What does amortization mean?
Amortization is how your loan is paid back over time.
Your monthly payment typically includes:
- Principal: Amount borrowed
- Interest: Cost of borrowing the money
- Taxes and insurance: Often included in your payment
Contract and escrow
Learn what happens once you are ready to secure your home.
What is escrow?
Escrow is a neutral third party that safely holds money during the transaction.
Escrow:
- Protects the buyer and the seller
- Collects deposits
- Ensures all terms of the contract are met before closing
What is a purchase agreement or contract?
This is the legal document that outlines:
- Details on your new home and locks in the price
- Deposit amount
- Timeline for construction and closing
- What is included in the home
- Your rights and responsibilities
Your New Home Sales Professional will help explain this step by step.
Closing and move-in
What to expect near the end of your homebuying journey.
What are closing costs?
Closing costs are fees required to finalize the home purchase. They may include:
- Loan fees
- Appraisal
- Title and recording fees
- Prepaid taxes and insurance
The lender will provide a clear estimate well before closing so there are no surprises.
What is a home appraisal?
An appraisal is an independent review that confirms the home’s value.
- It is required by the lender
- It helps ensure the value of the home
Will my new home come with a warranty?
Yes. New construction homes typically include:
- A builder warranty (covering workmanship and materials)
- Structural coverage for 10 years
This offers peace of mind and is one of the benefits of buying new.
What is a walkthrough or new home celebration?
Before closing, you will do a final walkthrough. We call it a New Home Celebration with your Construction Superintendent.
This is your opportunity to:
- See the finished home
- Learn how systems work
- Ensure everything is complete
What happens at closing?
Closing is the final step, often called settlement.
At closing, you:
- Sign final paperwork
- Pay remaining closing costs
- Receive the keys to your new home
FINAL REASSURANCE FOR FIRST-TIME BUYERS
Buying your first home is a big milestone. You will be guided, educated and supported every step of the way. No question is too small. Our team is here to help you feel confident—from your first visit to move-in day.