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It can be pretty exciting when it comes to buying a home, especially if it happens to be in the category of new build homes. However, it also can be very overwhelming at the same time, especially since you should be an active participant in all the different aspects of the building of your new home. You will need to work very closely with the builder in order to make sure you get what you want. Here are five important things you need to know when you are involved with this.

You need to know your numbers – Before you even start thinking about new build homes, you need to make sure to come up with some numbers to figure out whether or not you can afford to build the home. You can actually use a cost to build tool, for a small fee which will give you a very accurate estimate of the construction cost which is based on where you are building the home. The numbers will need to include cost of construction, the tax benefits, down payment amount and even a slush account and any miscellaneous items. Once this is done you can then buy your house plan and take it to your bank to arrange for the financing. This means that you are going to need a home construction line of credit that you can use to pay any subcontractors and suppliers that might be used to build your home. Then once the home is finished you need a mortgage to pay off the construction line of credit.

Credibility and reputation of the builder – There are a lot of different builders out there doing new build homes and not all of them are equal in skills or conditionals. It is important that you do your homework and find out which builders out there have the best reputation. You can search for information online or you can get your recommendations from your friends or family members. You need to find out if the builder is respected for his quality work along with if he is trustworthy and punctual. It is also highly recommended that you only use builders that are that are registered with an association like the National Association of Home Builders.

Build the home with the resale of it in mind – It doesn’t matter how much you might love the home being built for you, in today's world, it is highly unlikely that you will live in this home until the day you die. So, it is very important that when having it built that you make sure there that you keep in mind its resale value. Make sure that you don't pick something that is too out of the ordinary and don't add so many extras that you house ends up being way overpriced.

Think of the environment and think green – The environment is important to a lot of people and this is why it is important that your builder and architect ensure that your home is build environmental friendly, like having all windows facing south to get as much sun as possible to heat the home. Try to get the bathrooms, laundry room and garage are all on the south side and you want smaller windows to help lower the heat loss. Make sure you choose the best insulation and have an efficient HVAC system installed. All appliances should be energy efficient and you should include WaterSense faucets and toilets as well.

Don't forget the punch list – What is is, is a list that included at the end of the construction of all new home builds. This list will include what is still needed to be done or what might need to be repaired on the new build. You need to get together with your contractor to create this list the week before you close so you can go through the final walk through with them. Make sure to take good notes of everything you see. The problems you find will usually fall under two different categories. Reasonable flaws and unreasonable flaws. The flaws that are reasonable are ones that are within the tolerance levels of building construction. Unreasonable flaws are ones that must be fixed, these are the ones that affect the quality of the new home. The money that you will use for the punch list should be put in escrow, that way you can move into your new home while the builder completes the punch list.

Buying a home that is in new housing developments is a little bit different than if you were buying a home that was previously owned by someone. The first thing is that there are no previous owners so you won't be dealing with any of the seller's emotional attachment they might have with the home and this can sometimes influence any negotiating there might be. Then there is the fact that you only have to work with the builder when dealing with a home that is being constructed.

Just like with a previously owned home you still need to figure out what your budget will be, secure the financing prior to getting into a home in new housing developments, get pre-approved by a bank or a mortgage lender. Then decide how much you want to invest and don't forget the property taxes, insurance, possibly new furniture, window treatments, landscaping and maintenance, all of which are going to drain your bank account.

If you are considering buying a home in new housing developments you may want to take a look at these five tips to help guide you through the process.

Weigh the Pros and Cons

You can buy your brand new home in one of these three ways: Buy the house already built on spec; have a semi-custom built home built as part of a development plan or you can have it completely custom built to your specifications.

So before you make up your mind, make sure to see if the new construction is going to fit your personal lifestyle. Ask yourself the following questions:

• Usually new housing developments are not close to the city center, will you mind the commute?
• Are you willing to take all the time it needs to help a new landscape grow and develop?
• Can you stand living in the “cookie-cutter” nature of a new housing development drive you nuts?
• New housing developments tend to build houses almost on top of each other, will you mind that kind of closeness and possible lack of privacy?

Make sure to Research Neighborhoods and Builders

Make sure to do your research about the places around the new development and find out about the builders working on it.

• Understand that any listing agent you talk to is working for the builder and not for you. They are trying to get their quota they are not out to help you.
• If you have your own listing agent make sure they are in the loop of you being interested in looking at new housing developments so that they will help you find one and so that they will get the commission for any work they do for you, otherwise if the builders agent will get it.
• You can look online for your own listings for new home constructions.
• Take a drive out to the neighborhood and check them out yourself and look at the amenities and the quality of the homes.
• Walk through the community and ask current homeowners about any of their experiences.
• Make sure to go to model open houses and keep a journal and take photos.
• Make sure to ask the builder or developer if there are any homeowner fees and rules for the new development some homeowner fees are outrageous.
• Ask if cable and Internet are available in the area.
• Find out what the zoning laws are for the area.
• Go to the city planners office to see what might be planned for that area in the future.

To make sure that a builder is one that is financially sound, reliable and trustworthy you need to make sure that you do research on them as well. Check with the Better Business Bureau to see if any complaints have been filed against them. Ask local real estate agents if the builder has a good reputation within the community. Check out the builders previous homes that his company has built and see how their craftsmanship has stood up over time and the elements.

What's Standard and What's Extra

It's important to know what is considered standard and what is considered extra with the home. So make sure that you get yourself a feature sheet on the homes that you are interested in and read this very carefully and compare the features. You want to find out what comes with the base price of the home and what is considered an extra.

• If a stove is included check out the showroom to see the model, if it's a basic stove but you are a gourmet chef you'll want the upgrade for example.
• Make your decision on getting upgrades early in the negotiating process.
• Make sure that you have a good idea of what you want and need.
• The builder makes a ton of money on the upgrades so make sure whether or not you really need them.
• Builders however generally want to sell fast to make a quick profit so if you are haggling over the price then see if you can't get them to throw in the upgrades for free and then you'll agree to their price.

Get the Home Inspected and Get a Home Warranty

After you decide to buy the new home you need to get a final inspection done by a professional that you pay for. Don't assume that because the home is brand new that there isn't going to be anything wrong with it. It is probably a good idea that you have an inspection done at each phase of the building process because potential problems can be seen sooner.

Make sure to protect yourself with warranties. All new homes do come with an implied warranty from builders but you still should get a warranty from the builder that covers from the date of move in to at least a year after. They can vary from one year to ten years so make sure you know what you want and how long. Make sure the warranties cover what you want and need.

Closing the Deal

Often times the builders of new hosing developments will have in-house mortgage lenders or they have ties to outside lenders. You can use their lenders or you can find the financing on your own. Make sure to find out about any special funding programs that might be available if you are a first time buyer. Make sure to contact at least two different lenders so you can compare the terms, rates, fees and points.

You need to be comfortable with the lender because remember you could be committing up to 30 years of your life on this mortgage.