A $900,000 new-construction purchase financed at 6.75% with 20% down creates a $720,000 mortgage. At 6.75%, principal and interest is about $4,670 per month. If a delayed closing forces a rate reset to 7.125%, the payment rises to about $4,850 – roughly $180 more each month and $10,800 more over the first five years, before taxes, insurance, or HOA dues. That is why a new construction mortgage checklist is not paperwork theater. It is a timeline for protecting a high-value purchase while the house is still being built.
New construction introduces variables that do not exist with a resale home: builder deposits, changing completion dates, appraisal timing, rate-lock expiration, draw schedules, and final walk-through issues. A polished home tour is not the same thing as a mortgage-ready transaction.
Duane Buziak, NMLS #1110647
Table of Contents
- Start with the right prequalification
- Confirm your loan structure before signing
- Protect the rate through construction
- Track builder, appraisal, and inspection milestones
- Prepare for final underwriting and closing
- Broker comparison
- Frequently asked questions
Start with a credit-safe prequalification
Before touring model homes in Short Pump, Glen Allen, or Midlothian, establish a realistic buying range. For buyers concerned about credit impact, a soft credit pull mortgage review can provide an initial view of score, liabilities, and payment options without a hard inquiry. Premium Mortgage Rates offers a NoTouch Credit Pull option designed for this early stage.
A no hard inquiry mortgage pre approval is useful when you are comparing communities, deciding whether to sell first, or determining whether a larger down payment makes more sense. It is not a substitute for final underwriting. Once you select a home and execute a contract, the file will need documentation, verification, and often a traditional credit report before closing.
For conventional financing, many strong pricing tiers begin around a 740 credit score, while 760-plus can improve options on larger balances. FHA financing may permit lower scores, but pricing, down payment, and underwriting requirements still vary. VA buyers may have no universal minimum score set by the program, yet individual mortgage programs commonly apply credit overlays. A mortgage pre approval without hard pull is a smart first conversation, not a promise that documents will never be requested.
For national context, the 2026 baseline conforming loan limit is $832,750 for a one-unit property, according to the Federal Housing Finance Agency conforming loan limit data. A $900,000 purchase with 20% down fits under that limit. A higher loan amount, a smaller down payment, or a high-cost county can move the decision toward jumbo financing.
Confirm the loan structure before signing
Builder contracts often favor the builder’s timeline. Read the financing addendum before placing a deposit, particularly the deadlines for loan application, financing approval, appraisal, and closing. Ask whether incentives are tied to a particular single-shelf institution and whether you can retain the incentive while using an independent broker. The answer can materially affect total cost and service.
Your checklist should identify the product before construction begins. Jumbo financing is often the first consideration for higher-balance homes. Conventional financing can be compelling when the balance remains within conforming limits. Self-employed buyers may benefit from bank statement or asset depletion options when tax returns do not reflect usable cash flow. Investors purchasing a rental may evaluate DSCR financing based primarily on property cash flow rather than personal income.
Use a full cash-to-close calculation, not just the down payment. On a $900,000 purchase with 20% down, the down payment is $180,000. If closing costs and prepaid items total 2.5%, add $22,500, bringing the estimated cash requirement to $202,500. Typical closing costs and prepaids commonly land around 2% to 5%, depending on taxes, insurance, title charges, escrows, discount points, and location. Ask about no-out-of-pocket closing options if preserving liquidity matters.
Reserves matter more on jumbo and investment transactions. A common jumbo expectation is six to 12 months of total housing payments in verified reserves, although requirements depend on credit, loan-to-value, property type, and assets. Keep deposit funds traceable. A large unexplained transfer during construction can create a preventable underwriting delay.
Protect the rate through construction
Rate locks are a central risk in a new build. A 30-day lock may be sufficient for a completed spec home, but it is rarely appropriate for a home estimated to finish six or nine months from now. Ask whether a longer lock is available, what extension costs may apply, whether a float-down feature exists, and when the lock begins.
Do not assume the builder’s estimated completion date is a closing date. Weather, permits, utility work, material availability, municipal inspections, and buyer-selected upgrades can all move the schedule. In Henrico County, the May 2026 median sale price was approximately $455,000, according to Redfin market data for Henrico County. Inventory in parts of the Richmond metro has improved from the tightest recent conditions, but well-located new communities still attract buyers seeking predictable layouts and lower near-term maintenance. Competition can remain strongest for finished homes and quick-move-in inventory.
A 24-Hour Guarantee matters here because timing questions need direct answers while contract deadlines are active. A broker should review the builder timeline with you, update the financing strategy when dates shift, and communicate early rather than waiting for a lock to become a crisis.
Track builder, appraisal, and inspection milestones
New construction appraisals can be more nuanced than buyers expect. The appraiser may use nearby resales, completed new builds, pending sales where data is available, and adjusted comparable properties. Upgrades do not always return dollar-for-dollar in an appraisal. A $35,000 design-center package may improve marketability, but not every feature receives an equal valuation adjustment.
Schedule an independent inspection even on a new home. A municipal inspection checks code compliance; it is not a personalized inspection of finish quality, drainage, appliance operation, attic conditions, or construction defects. Many buyers use a pre-drywall inspection and a final inspection before closing. Keep a written punch list, dated photographs, and builder communications in one folder.
Your financing file also needs attention while construction continues. Avoid opening new credit accounts for furniture, window treatments, appliances, or a vehicle. Do not increase card balances or move money between accounts without first asking your broker how it will be documented. The Consumer Financial Protection Bureau homebuying guidance explains why credit, income, assets, and debts are reviewed before closing.
For VA buyers, confirm the builder, property, entitlement, and timing fit the program before committing. The official VA home loan program overview is a useful starting point. A VA loan can be powerful for eligible veterans, but builder contracts, appraisal requirements, and occupancy rules still deserve early review.
Prepare for final underwriting and closing
Thirty to 45 days before estimated completion, update every document that could have changed: pay stubs, bank statements, tax returns if required, insurance information, identification, and proof of earnest money. Self-employed buyers should be prepared for a year-to-date profit-and-loss statement and recent business account statements. Investors using DSCR should confirm lease assumptions, rental-market evidence, and reserve requirements.
About two weeks before closing, verify the final loan amount, interest rate, cash to close, insurance premium, HOA dues, property taxes, and builder credits. Read the Closing Disclosure closely. Ask about differences from earlier estimates before wiring funds. Always independently verify wiring instructions by a trusted phone number, not an emailed link or last-minute message.
At the final walk-through, test lights, outlets, plumbing fixtures, HVAC operation, garage doors, appliances, windows, and locks. Confirm that agreed repairs and punch-list items are addressed. If a significant issue remains, ask your real estate professional and broker what options exist under the contract before signing.
Broker versus a single-shelf institution
| Decision point | Mortgage broker approach | Single-shelf institution approach |
|---|---|---|
| Program selection | Can compare available conventional, jumbo, VA, bank statement, DSCR, and non-QM options. | Limited to programs offered on its own shelf. |
| Construction timeline | Can evaluate lock structures and program fit as completion dates change. | Uses that institution’s lock policies and available products. |
| Complex income | Can seek options for self-employed, asset-based, or nontraditional income files. | May require the file to fit its internal documentation standards. |
| Service model | Direct advisory support, document strategy, and coordination through closing. | Service level varies by branch, team capacity, and workflow. |
| Credit-first planning | May begin with a soft pull mortgage broker review when appropriate. | Application processes may differ by institution and product. |
Frequently asked questions
Can I get a new construction mortgage before the home is finished?
Yes. The appropriate structure depends on whether you are buying from a builder, purchasing a completed spec home, or acting as your own builder. The contract and completion timeline determine the financing strategy.
Does a soft credit pull mortgage affect my score?
A soft pull generally does not create the score impact associated with a hard inquiry. Final approval still requires full verification and may require a hard credit inquiry.
How much should I save beyond my down payment?
Plan for closing costs, prepaids, moving expenses, upgrade decisions, and reserves. On larger loans, reserve requirements can be substantial, especially for jumbo, second-home, or investment purchases.
When should I lock my mortgage rate on a new build?
That depends on the estimated completion date, available long-term lock options, extension terms, and your tolerance for rate movement. Review it before signing the builder contract.
Do builders require me to use their preferred mortgage company?
Usually, buyers can choose their own mortgage broker, although certain builder incentives may be tied to a preferred financing provider. Review the incentive agreement carefully.
Can upgrades increase my mortgage amount?
Potentially, if upgrades are included in the purchase price and the appraisal supports value. Upgrades paid separately may require cash and may not increase the financed amount.
Should I inspect a newly built home?
Yes. An independent inspection can identify issues that are separate from municipal code inspections and gives you a documented punch list before closing.
Can a self-employed buyer qualify for new construction?
Yes. Conventional, jumbo, bank statement, asset depletion, and other non-QM options may be considered depending on income, assets, credit, property type, and occupancy.
A well-managed new-build purchase feels calm because the important decisions are made before the drywall, appraisal, and closing date create pressure. Buyers in Virginia, Florida, Tennessee, and Georgia can request a 100% free, fast and easy review with Premium Mortgage Rates to match the mortgage structure to the builder timeline.
Legal disclaimer: This article is for general educational purposes only and is not a commitment to lend, credit decision, or legal, tax, insurance, investment, or real estate advice. Loan approval, rates, terms, program availability, and required documentation vary by borrower qualifications, property, occupancy, loan-to-value, and market conditions. Duane Buziak is licensed to originate mortgage loans in Virginia, Florida, Tennessee, Georgia, and Washington, DC only.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.