Informing you about the
Early Purchase
process when buying a newly
constructed home

An Early Purchase is a home that isn’t built yet.

If you have been in the market for a new home, you are probably finding that a large percentage of homes available are listed as an “Early Purchase.” An early purchase may be a home that hasn’t even had a building permit issued, or it may already be in construction. While early purchases are very common in the real estate industry, it is critical that you have an understanding of the process that the builder goes through, the timeline to complete the home, and the considerations that must be taken about your appraisal, closing and possession of the home.

Prior to building any home, the builder must demonstrate to the permitting jurisdiction that the lot will support the home. Most residential builders have completed this process prior to putting the early purchase on the market.

Step 1: Identify How Much You Can Afford

Before you start house hunting, it is very important that you identify how much you can afford. Review your monthly income and expenses. Knowing what your budget looks like will then lead you to making a smart decision about how much home you can afford. It is also a good idea to start talking with a lender. Find out how much you would pre-qualify for. We work with several financing institutions, so to begin this process today, give us a call and we will direct you to one of our preferred lenders.

Step 2: Choose Your Community

There are several conveniently located communities to choose from. For more information, including location, amenities, floor plans, and available home sites, visit the Communities section on our website at www.bridgepointerealestate.com. Please call your Realtor to schedule a visit to Crescent Building Group’s Design Studio to see all of your available options. Real estate agents can help during this process as they have the education and knowledge to help you make the best decisions when purchasing your home. Agents also reduce the stress of buying a new home by handling the loads of paperwork and processing required. We have New Home Specialists standing by to assist you during this process, or you may bring your own Realtor.

Step 3: Choose Your Floor Plan

And now the real fun begins! Now you get to choose your floor plan. Crescent Building Group has a reputation for designing truly “lean” floor plans which are spacious, logical and family functional. Visit our facebook page for floor plan availability and check out the available floor plans.

A variety of quality features are standard with every Crescent Building Group home. Both exteriors and interiors feature superior craftsmanship with an attention to detail, utilizing the finest materials. On top of that, you’ll find all other customizable amenities that give your home a personal touch. Please speak with one of our agents if you have any questions.

After you’ve decided on your home…

It’s time to sign the Purchase and Sales Agreement, the formal real estate contract, and submit an earnest money deposit along with a mortgage prequalification letter. Once the contract is signed, it’s on to the home buyer orientation meeting to inform you about designing and building the home of your dreams.

Before construction begins, several items need to be agreed upon and completed. These items include the approval of your site plan and the issuance of a building permit by the city. When the building permit is approved by the city, a construction schedule is created and the start date is assigned to begin construction on your new home.

In order to take the next step in the process Crescent Building Group banking partners require that you provide a pre-qualification letter from a mortgage company and a 3.0 to 15% non-refundable deposit that will be applied to the final sales price.

Obtaining Financing

Getting the right mortgage lender can make a big difference in whether the home buying process goes smoothly or not.  Your Sales Agent may suggest mortgage lenders with whom Crescent Building Group has had a successful history in providing good customer service and are able to work with each individual’s specific needs.  As required by the home purchase agreement, you must apply for a loan within 60 business days from the completion date of the home.

  1. If you are planning to finance items not covered by your original contract, such as additional upgrades or options, a swimming pool or window coverings, you must inform your lender as soon as possible, in that this information is required before loan approval. This information is also needed before ordering the appraisal.
  2. If your home is nearing completion at the time of your purchase and you anticipate a quick closing, please make sure your lender is aware of this at your initial meeting.
  3. Each lender has a checklist of the required information for loan processing. Be sure to obtain that list and promptly get every single item on the list turned into your chosen lender as soon as possible.

Let’s Get Started!

LetsGetStartedOnce the paperwork has been authorized, a Crescent New Home Specialist will begin working with your on your final floor plan. The first floor plan review with start 4 to 5 weeks after the paperwork is submitted.

Your specialist will work with you to make sure every aspect of your new home is designed exactly the way you want it.

As you review your plan, please mark it or make notes about any changes you will make. Be sure to make any necessary on the entire set of plans.

You can review and change the entire floor plan up to three seperate times before the draftsman will begin adding additional charges.

Once you are completely satisfied with your plan, your new home representative will work with you to schedule your selection center meeting.

This is where things get interesting!

Every Crescent Building Group home comes with high quality products that are current in today’s market.  At the Selection Center Meeting, you’ll choose your cabinets, countertops, fixtures and flooring, plus other options and upgrades that allow you to make your home a reflection of your personal style.

Important Reminders for the Meeting:

  1. Please make alternate plans for your children so you may experience the full benefits of  our Selection Center.
  2. Selection meeting typically run from 2 to 3 hours, so please schedule accordingly

After your selection meeting is over, you can change any of your selections up to the time framing begins on your home.  Once constructions begins you may be subject to a change order fee of $250 on any changes you can make.

At Crescent Building Group, we want your experience to be a enjoyable as possible. We will make every effort to be flexible with your selections. 95% of our homes are completed without any change order fees at all!!

Getting a  Completion Date

At your selection meeting, you will receive your Completion Date, this is not your Closing/Move in Date.   This is the day Crescent Building Group will file the Notice of Completion, which is required by your lender and by the state.  Final details of your home will be completed between Notice of Completion and the Home Orientation Meeting.

Your estimated Completion date may change due to weather, material availability, change orders, and extenuating circumstances.

Please be very careful when locking loan rates with your mortgage company or in the timing of listing and selling your existing home because the time between the completion date and closing date can be anywhere from 10 to 45 days depending on your mortgage company.

Questions & Concerns

RundownDuring construction you have going to have questions and concerns.  That is natural and to be expected. It is our job to communicate promptly with you to address these issues, while not delaying the construction of your home.  Your point of contact for all matters regarding your home is through one of our New Home Specialists.  Good communications is very important in making things go as smoothly as possible.  Our goal at Crescent Building Group is to respond to questions within 2 business days. Your builder and New Homes Specialist meet formally every Monday to review and discuss every home under construction.

Rundown of the Building Process

The building of your new home is a complex process and Crescent Building Group partners with top level professionals to construct the highest quality homes. Crescent Building Group employees work extremely hard to oversee the subcontractor’s work and put all the finishing touches together that will turn the structure into your dream home. The following pages contain a brief rundown of the building process.

Phase 1: Foundation

FoundationThe site is staked out and the foundation is dug. The footings and slab are poured. The plumbers will complete under-floor plumbing and the foundation is insulated. The foundation is backfilled and the basement and garage floors are poured. As with every step of your home, a Crescent Building Group employee and a city inspector will thoroughly inspect your home to ensure quality construction.

As your new foundation is being laid out, your new home specialist will invite you out to the site to meet with your builder for your first of three visits with him. Your builder will go over the layout and positioning of your new home and  he will also discuss the grade and water runoff plan.

Remember, your new home specialist will visit the house with you as often as you like, but because of our insurance we cannot allow any unsupervised visits.  Please schedule your visits with your new home specialist.

Phase II: Frame

Once the foundation and floors are complete, the framers are ready to build the skeletal system of your new home. They will start from the bottom, placing floor joists, then standing the walls and attaching the trusses which are part of the roofing system. They will sheath the roof. The windows and doors will be installed and your home will be wrapped in house wrap. All mechanical rough-ins will be completed. Again, inspections by both Crescent Building Group and the city inspectors are required before this process is complete.

Crescent Building Group offers our buyers the opportunity to walk their home with the builder to review the home after the installation of all mechanical, electrical and plumbing roughs, prior to covering the walls with sheetrock. The Frame Walk is not a quality walk. Rather, it is an opportunity for our customers to review the installation of all change orders and to discuss or ask any questions directly with your builder about the construction of your home.  We will be looking at all cable and electrical outlet placement during this time.  Your new home specialist will schedule the frame walk with you. Construction progress will not be delayed if you are not available at the time the home is ready to walk.

Phase III: Interior Finish

InteriorFinishOnce your new home has passed the inspections in the framing stage, it is time to finish the interior. This includes insulating and going through the drywall process, which includes hanging the drywall, taping and sanding the seams and corners, and texturizing your ceiling.

All of our clients are excited to see their new home as it progresses. Your builder will be available for a tour as soon as all of the drywall is installed in your new home. Your new home  specialist will schedule this meeting with you.

The walls are then ready to be primed. After priming, the hard surfaces such as hardwood and ceramic are installed. Next is the carpentry trim which includes installing cabinets and countertops. The final coat of paint goes on the walls, followed by carpet and closet shelving installation. The new house has final touchups and a thorough cleaning. A Crescent Building Group employee spends 1-2 weeks in your new home at the end of the new construction process to perfect all the finishing details.

Phase IV: Exterior Finish

At the same time that the interior of your new home is undergoing a transformation from frame to finish, the exterior of your new home is being finished too. This process includes felting and shingling the roof, application of all siding and masonry work, final grading of your new home site, and installation of landscaping and fencing.

The home building process usually takes about 120 days once framing starts. A walk-through is conducted right before the drywall is hung, to ensure your home is being built to specifications and to answer any questions you may have. About five business days prior to close, a final walk through allows for one last opportunity to inspect your home and discuss the warranty program.

Phase V: Final Steps to Closing

The following highlights the steps leading up to your closing:

Attend a Customer Orientation Meeting a week or two before closing. During the Orientation Meeting your new home specialist will cover many important issues and we request that all purchasers on the Purchase Agreement attend the meeting. We also ask that small children not attend the meeting so that everyone can focus their full attention to the covered items. The meeting should take about one or two hours, and will cover the following items:

  1. Review your contract and verify all your deposits and balances due.
  2. Review the title company procedures and schedule.
  3. Review the warranty services procedures.
  4. Discuss the required utility transfers and any postal issues.
  5. The operation of all mechanical, plumbing and electrical systems and appliances.
  6. A review of the manufacturers warranties, which are conveyed to you, on those covered components of your home.
  7. A discussion of required homeowners maintenance items.
  8. A review of the Crescent Building Group customer service procedures for after closing.
  9. A final cosmetic review of the entire home.

Important Notes:

ImportantNotesIf you wish to have an independent home inspector review your home prior to closing, this should be scheduled through our New Home Specialist before the Customer Orientation Meeting.

During the Customer Orientation of your home it is common for you to identify items in  which you feel require additional attention. Your builder will document those items and attend to them during the days between your Customer Orientation and your Final Walk Through. Because those are the only days allotted for your builder to address all items of concern, it is important to understand that the list created at the Customer Orientation must be the final list created. The cosmetic items documented at the Customer Orientation are the last cosmetic items ever addressed by Crescent other than those specifically covered by the Ten Year Limited Warranty Plus Program.

The Final Walk will take place a few days before closing. The primary purpose of your Final Walk is to review the items on the list created during the Customer Orientation and to review with your builder any concerns or questions you may have about your home. As already stated, a new cosmetic list cannot be accepted at the Final Walk. Once the Customer Orientation items have been reviewed you will sign a certificate of completion, your home will be locked and is then ready for your closing and move-in.