What’s Next After Buying a Pre-Construction Home? A Guide for Buyers

You’ve Bought Pre-Construction—Now What?

Congratulations! Purchasing a pre-construction home is a significant step toward securing your future and building equity. But what happens next? Knowing what to expect can help you navigate the process smoothly while ensuring your investment remains on track.

What to Expect After Purchasing Pre-Construction

Stay Updated on Timelines

Construction schedules can shift. While developers provide estimated completion dates, staying in touch with them ensures you’re always aware of any changes or delays.

Interim Occupancy (For Condos)

If you’ve purchased a pre-construction condo, you may move in before the building is officially registered. During this interim occupancy period, you’ll pay occupancy fees, which are similar to rent but don’t go toward your mortgage.

Prepare for Final Closing

As your home nears completion, ensure your mortgage financing is secured, and you’ve budgeted for closing costs like:

• Development fees
• Land transfer taxes
• Legal fees

Review Builder Communications

Watch for important updates from your builder, especially regarding upgrade selections and customization deadlines. Missing these could mean losing out on personalized finishes.

Plan for Your Move

With construction wrapping up, start preparing for moving day. Some minor work may still be happening in the community, so factor that into your plans.

How to Financially Prepare for Your Pre-Construction Home

Budget for Closing Costs

Closing costs for pre-construction homes typically range from 1.5% to 4% of the purchase price. Setting aside these funds in advance can prevent last-minute surprises.

Secure Your Mortgage Approval

Ensure your mortgage pre-approval is updated as you approach closing. If interest rates have changed, work with a mortgage expert to explore your best financing options.

Consider Rental Income (If Applicable)

If you’re investing in a pre-construction home to rent out, start researching rental rates and marketing your unit early to secure potential tenants.

Final Stages Before You Take Ownership

Pre-Delivery Inspection (PDI)

Before taking possession, you’ll inspect your home with the builder to document any deficiencies that need to be fixed before moving in.

Warranty Coverage

Your new home is covered by a builder warranty, typically lasting one year, to address any defects in workmanship or materials.

Occupancy vs. Final Ownership

Interim occupancy does not mean you own the property yet—ownership transfers once the builder completes registration.

Maximizing Your Pre-Construction Investment

✔ Stay Organized – Keep records of builder communications, deadlines, and financial paperwork.
✔ Ask Questions – Your builder and mortgage advisor are valuable resources—use them.
✔ Think Long-Term – Pre-construction homes are a wealth-building tool that offer future financial security.

Ready for the Next Step? We’re Here to Help!

Navigating pre-construction from purchase to possession can be overwhelming, but you don’t have to do it alone. From mortgage solutions to closing support, our team is here to guide you every step of the way.

Let’s ensure your journey to homeownership is smooth and stress-free!