Buying your first home comes with plenty of excitement, but it also comes with a host of confusing questions. The obvious questions? Where do I want to live? How much do I want to spend? How many bedrooms will I need? The not-so-obvious questions? What is a “pre-approval?” Do I really need a 20% down payment? Why would I need a home inspection on a newly built property?

Finding the answers to those not-so-obvious questions can be tricky, but the team at A&G Residential knows where to look. We break down the homebuying process, step by step, including offering clear answers to questions you may not even have known to ask.

Questions most often asked by new homebuyers:

Where Do I Begin? The first step on your homebuying journey is finding a lender who can determine your preapproval number.

Before deciding on which kitchen or floor plan you love the most, a lender should look at your income, daily expenses, savings, and credit. Together, you will determine your mortgage options and uncover your preapproval number.

A lender will explain how much you will be able to borrow (preapproval), what documentation will be needed, and how each loan program will affect your purchase. It is unlikely that your preapproval number will be the same as your final loan approval, but it will give you a realistic starting point for your home search.

The preapproval process will also uncover any fiscal issues that may need to be addressed before you find your dream home.

Will I Really Need a 20% Down Payment? The short answer? Not necessarily.

The belief that every buyer must put 20% down keeps many would-be homeowners out of the market. However, different mortgage programs have different requirements.

Some conventional loans allow qualified buyers to purchase with less than 20% down with the cushion of private mortgage insurance. FHA loans typically offer lower down-payment options for eligible borrowers. Qualified military buyers often use a VA-backed loan, allowing a no-down-payment purchase. You may qualify for USDA financing through a guaranteed loan program.

Loan programs, rates, fees, and eligibility requirements change often. Your lender will offer advice based on your current finances and the home type you may be considering.

How Much Home Can I Afford? The answer will be somewhere between your preapproval number and what feels financially comfortable to you.

When estimating affordability, it’s important to consider your monthly budget and how your entire monthly home expenses will fit into that budget. Property taxes, homeowners’ insurance, and, if applicable, HOA dues should be included into that equation. You will also need room in your budget for utilities and home maintenance.

Rather than search for a home whose purchase price meets your preapproval number, look for one below that number to account for all those other monthly payments. Your lender will help estimate payments for different price points, down payments, and loan structures.

What Other Upfront Costs Should I Expect? That initial down payment may only be one piece of your home-purchasing pie.

When buying a home, you may be responsible for closing costs, lender fees, inspection expenses, and moving costs. While that does sound overwhelming, your exact upfront costs will depend on your loan, contract, property, and transaction.

After you apply for a mortgage, your lender will provide a loan estimate that includes projected closing costs. Review this carefully and be sure to keep some savings set aside for moving costs. If a builder or lender is offering closing-cost incentives, ask what conditions apply.

Does My Credit Have to Be Perfect? Again, the short answer is no.

Home buyers can qualify for mortgages with a range of credit profiles because different loan programs use different guidelines, though your credit will influence your available options.

As you start your home search, check your credit reports thoroughly and look for any errors. Before making any major financial changes, always speak with your lender first, and pay all bills on time to keep your credit consistent. Even once under contract, you will need to maintain a steady financial life.

While many assume that imperfect credit removes the possibility of homeownership, that’s not always true, and your lender will offer suggestions to improve your credit readiness.

While the above questions are applicable to both pre-owned and new construction homes, the following are specific to new construction. A&G Residential is building new homes in communities across central North Carolina and is ready to guide you through the process.

Why Should I Consider New Construction? New construction can remove some of the uncertainty that makes first-time buyers nervous.

A newly built home offers brand-new systems, up-to-date materials, modern layouts, and features designed for the way homeowners live today. Depending on the home and its stage of construction, you may also have opportunities to choose finishes or other details.

A&G Residential offers thoughtfully designed floor plans, ranging from move-in ready homes to those that are still in the early stages of construction. That variety can help you find an option that fits both your preferred timeline and design decision comfort level.

While “new construction” doesn’t mean “maintenance-free”, it can offer a clean start for new homebuyers with no need for immediate renovations or system replacements.

Can I Personalize a New Home? The answer depends on the particular home, construction stage, and selections that the builder offers.

When purchasing early enough in the building process, buyers are often able to select preferred colors, finishes, or fixtures. A home that is farther along will typically have fewer opportunities for changes but may offer a quicker move-in.

When working with A&G Residential, you will always know what’s included in your new build, what customizations are available, and whether any change requests carry an additional cost. This will enable you to compare potential homes fairly before selecting yours.

How Long Does It Take to Buy a New Construction Home? The timeline varies.

A completed, new construction home will follow a purchase timeline similar to a pre-owned home. A mid-construction home will take a bit longer as final touches still have to be put into place.

A true new construction home that has yet to break ground will take the longest, as it will require additional planning and decision-making. Weather, material availability, and other factors can also affect a new construction home’s timeline.

A&G Residential’s team will always communicate your home’s current building stage and any adjustments to benchmark dates.

Should I Have a Newly Built Home Inspected? Yes, many buyers choose to hire an independent, licensed home inspector even when purchasing new construction.

Building-code inspections and a buyer’s home inspection serve different purposes, and an independent inspection can offer additional information about your completed home. A&G Residential will let you know when your inspection can be scheduled and how any findings should be communicated.

Before closing, A&G Residential will schedule a final walkthrough with you to learn all about your home, identify any items that may need attention, and share who to contact with questions after move-in.

Does a New Construction Home Come with a Warranty? New homes commonly include warranty coverage, but the details, time periods, exclusions, and procedures vary.

A&G Residential offers a 2-10 Home Buyers Warranty that includes:

• 10 full years of structure defect coverage for load-bearing components.
• 1 full year of distribution systems defects
• 1 full year of coverage against workmanship and materials defects.  materials.

It is recommended to keep all warranty information for your new home and its components together so they can be easily found, if needed.

Who Will Help Me Through the Process? A&G Residential’s team of experts!

A&G Residential doesn’t expect new homebuyers to navigate this process alone. Your support team will likely include a lender, a real estate professional, a builder representative, a home inspector, a closing attorney, and an insurance agent. Each professional will serve a unique role, and we will help clarify whom you should contact when questions arise.

With a diverse selection of floor plans, quality craftsmanship, and communities throughout central and eastern North Carolina, A&G Residential is ready to help you find the perfect brand-new home. Let’s get started by answering any other new buyer questions!

Reach out to the team at A&G Residential today for answers.