Home mortgages are for completed homes, not construction projects. But construction projects may become completed homes, so there is a loan structure designed to cover construction, and convert to a mortgage at the appropriate point. These are commonly called "construction perm" loans. Loan terms during construction are frequently based on variable rates, and provide scheduled cash disbursements — "draws" — to match the stages of construction. When the home is legally complete-enough to qualify for a Certificate of Occupancy (CO), the loan is converted to a mortgage. Construction perm loans have the advantage of a single application and closing, and dealing with a single lender. If you are considering a construction perm loan, compare interest-rate trends to your construction schedule. Assume construction delays. Evaluate if a rate-lock on the mortgage stage looks advantageous. In addition, weigh the short-term cost of the construction-perm arrangement against your mortgage rate and its long-term costs.

You may see or hear the term "punch list" in the process of buying a new home. Heres what it means. When a project is nearly done — "substantially complete" — a pre-final inspection is customary. The list of final things to be done (or checked) is called the "punch list" in the US, and the "snag list" in some countries. These tasks include things like security-system activation and elevator permitting, as well as minor/final repairs such as fixing wall cracks, trim or windows. Organization by type-of-subcontractor is common; all carpentry items together, all electrical, all plumbing, and so on. Critically, completion of the punch list can be required before final payment. Calling sub-contractors back afterwards, on the homeowners nickel, is obviously less desirable. In short, assuming the contract allows it, do not close escrow until the punch list is complete, or until you are satisfied with how items have been addressed.

REALTOR® is a registered trademark, as the ® symbol indicates. Only members of the NAR — National Association of Realtors — are allowed to use the trademark as part of their professional title. Members have access to educational resources and certifications around the complex real-estate process. They are also required to adhere to a Code of Ethics. According to NAR, their aim is to be experts in real estate, trends, and their local community, in order to help both buyers and sellers succeed. Roughly half of the people who can sell real estate (by getting a state license) take the additional steps to join NAR and become a REALTOR®. You can find licensed a REALTOR® by searching the NAR directory, or browsing regional resources.

Legal assistance is required in the home-buying process in some US states, but not others. States that currently require a real estate attorney to be involved include: Alabama Connecticut Delaware District of Columbia Florida Georgia Kansas Kentucky Maine Maryland Massachusetts Mississippi New Hampshire New Jersey New York North Dakota Pennsylvania Rhode Island South Carolina Vermont Virginia West Virginia As states pass new legislation, this list may change, so check local laws. Even if a lawyer is not required, the agreements and documentation in a home purchase do involve legal commitments. Engaging a legal representative may be helpful.