The most important things in purchasing a new home is to know who you are buying from. Because of the long term implications, locating a reputable builder can be crucial in the purchase of your home. It's something that you will have to live with for years to come.

There are a number of builders who have great reputations who build homes throughout the country. These builders usually specialize in certain types of homes. One builder may specialize in mid-priced condominiums, while another may specialize in building luxury homes. Choosing the builder who specializes in your price range will help you get the home you want because their sales and design people will best qualified to help you make the critical choices you need to make when buying a builder home.

Also, you want to find out what quality of construction the builder is known for. You also want to know if the builder has been sued within the past few years for construction defects in their past few projects. For this information you can contact the National Association of Home Builders. 

When you buy a new home you normally have a number of choices to make once you have gotten beyond the builder and model that you have chosen. These choices range from the type of carpet that you want to the landscaping (or lack of it!)

Normally, as an incentive, a builder will give you the buying a cash allowance for upgrades from the base model home that you have chosen. This money can be used in a number of ways. It can be used to pay for upgrades to the carpet; the installation of landscaping; upgrades to appliances, etc. Sometimes, the builder may also allow this money to be used to pay for costs in financing the home. Depending upon market conditions, the builder may be open to negotiation as to how the money is to be used.

You may also make other upgrades above and beyond your allowance limit with the builder by either financing the upgrades into the loan or by paying cash for the upgrades. You also are not required to have these upgrades done by the builders sub-contractor; you may make this choice yourself.

In order to make building project more appealing and uniform a builder will form a homeowners association for either a condo project or a PUD project (see Glossary O-Z). The builder will form the association and then hand over control of the project over to the homeowners once a certain minimum percentage of homes are sold and occupied. The builder will also set aside money to be used as reserves to start to the association. From that point forward the homeowners are required to pay monthly dues to the association (or the management company) to maintain the association and the grounds of the project.

In addition, new homeowners may also be required to pay special assessments to the county, city or both that the home is located in. These special assessments are required to pay for new infrastructure including: schools, sewers, parks, etc. These assessments usually have a definite payoff time between seven and ten years.

| Home | Programs | Rates | Apply | Contact | First Time Homebuyers | Refinance |
| Mortgage 101 | Buying a Home |

© 2005 Copyright Janus Mortgage  Terms and conditions apply.  Please see our privacy policy for information about how we protect the information you give us.  All rates, programs and fees are subject to change.  Janus Mortgage is a Real Estate Mortgage Broker licensed by the California Department of Real Estate, license number 01078456.