Thinking about a brand-new home in Magnolia? The right builder and contract can make the difference between a smooth move-in and months of stress. You want clear steps, local know-how, and a plan that protects your budget. This guide gives you a Magnolia-specific builder checklist, from permits and MUDs to inspections, financing, and warranties. Let’s dive in.
Start with local groundwork
Confirm permits and authority
First, confirm who issues building permits for your lot. Homes inside the City of Magnolia use city building permits and inspections. Outside city limits, permits and approvals typically run through Montgomery County or special districts. Always verify with the city or county rather than relying only on the builder.
Check flood risk and insurance
Review FEMA flood maps for your exact lot to see if it is in a Special Flood Hazard Area. If your lender requires flood insurance, add that cost to your budget. Ask the builder for grading and drainage plans so stormwater flows away from the home and neighboring lots.
Know your water, sewer, and MUD costs
Many Magnolia-area subdivisions are served by municipal utility districts. If your lot is in a MUD, expect an additional MUD tax on top of county, city, and school taxes. Some rural lots may have a septic system or well. Confirm the provider, tap fees, inspections, and who maintains each utility.
Verify schools and services
Magnolia is primarily served by Magnolia Independent School District. If school assignments matter to you, confirm the exact schools for your lot with the district. Ask about nearby public services and planned infrastructure so you understand the area around your future home.
Estimate property taxes and exemptions
Texas property taxes combine county, city, school district, and possibly MUD rates. New construction increases your appraised value after completion. Ask for the current combined rate for your lot and project taxes based on the final price. Learn about homestead exemptions and filing deadlines with the local appraisal district.
Building code and energy standards
Cities and counties in Texas adopt different code versions. Confirm which residential building and energy codes apply to your lot. Ask the builder how their plans comply and what inspections the city or county will perform.
Vet the builder like a pro
Track record and references
Ask how long the builder has worked in Magnolia and Montgomery County and which subdivisions they completed. Tour model homes and recent completions, and request references from buyers who closed in the past 12 months. Check for complaint patterns with consumer resources.
Warranty program and service
Request sample warranty documents up front. Many builders offer a workmanship warranty for finishes, a systems warranty for mechanicals, and a limited structural warranty, but exact terms vary. Ask how to submit claims, the typical response time, and who performs repairs.
Subcontractors, grading, and drainage
Understand which trades are in-house versus subcontracted. Ask who controls site work and drainage, and what is covered if drainage issues appear after closing. Get commitments in writing.
Contract type and fairness
Ask whether the builder uses a standard form or a builder-drafted agreement. Confirm whether you can choose your lender and title company, and whether incentives apply if you use preferred providers. Consider having a real estate attorney or experienced buyer’s agent review the contract.
Nail the contract details
Before you sign, review and negotiate:
- Purchase price and any lot premium. Is the price fixed or subject to change?
- Deposit and earnest money. Where is it held and when is it refundable?
- Construction timeline and completion date with milestones. Are there remedies if the builder misses substantial completion?
- Change orders. Who can approve, how are costs set, and how do changes affect the timeline?
- Upgrades and allowances. What is included and how are overages billed? Get selections documented in writing.
- Warranties. Length, scope, exclusions, and claims process. Ask for samples.
- Closing logistics. Title company, who pays which closing costs, and any incentives.
- Dispute terms. Arbitration, venue, and notice requirements.
- Community documents. CC&Rs, HOA bylaws, budget, dues, and any planned assessments.
Plan your financing and appraisal
Loan options to consider
Discuss construction-to-permanent loans, construction-only loans, and traditional mortgages for spec or inventory homes. Each has different timelines, fees, and rate structures. Compare total costs, not just the rate.
Preferred lender incentives
Builders may offer closing cost help or rate buydowns if you use a preferred lender. Compare incentives with independent quotes so you know the real tradeoffs. Ask whether using outside providers affects upgrade pricing or other terms.
FHA and VA requirements
If you plan to use FHA or VA financing, confirm early that your lender and builder meet program requirements. These loans often have specific inspection and appraisal steps that can affect timing.
Appraisal gap planning
New builds can appraise below contract price if you chose a premium lot or heavy upgrades. Budget for the possibility of a larger down payment if the appraisal comes in low. Ask your agent to review comps for similar new or recently built homes.
Construction draws and inspections
If you use a construction loan, ask who orders draw inspections and how the draw schedule works. Understand the safeguards if a draw is requested before work is complete.
Manage construction with inspections
Schedule phased inspections
Hire an independent inspector who knows new construction. Typical phases include foundation before the pour, pre-drywall for framing and rough-ins, and a final inspection before closing. These checks catch issues early while fixes are easier.
Keep change orders in writing
Document every change with the cost, materials, and any timeline impact. Keep receipts and updated plans together with your contract files. Confirm how and when you will pay for changes.
Permits, approvals, and CO
Ask the builder for copies of pulled permits and passed inspections. Before closing, confirm the Certificate of Occupancy or equivalent final approval is issued when required. Keep copies with your closing documents.
Utilities and meters
Confirm when electric, gas, water, and sewer will be active and when meters are set. If you are in a MUD or special district, ask about any tap or connection fees and how to set up your account.
Pre-closing, closing, and handover
Orientation and punch list
Attend the builder orientation to learn your systems, appliances, and maintenance basics. Complete a detailed final walk-through and create a punch list of items to finish or repair. Get the punch list signed and time-bound.
What to collect at closing
Ask for the written builder warranty, third-party structural warranty if provided, appliance manuals, product registrations, and as-built plans if available. Keep copies of permits, final inspection reports, the final plat, and your survey if one is provided. These documents help with future resale and warranty claims.
Insurance on day one
Ensure homeowner’s insurance starts on the closing date. Verify coverage matches the finished value and includes any lender-required endorsements. If flood insurance is required, have that binder ready too.
After closing: protect your investment
File exemptions and monitor taxes
Expect your appraised value to change after completion. File your homestead exemption with the local appraisal district by the stated deadline if you qualify. Review your tax notices and confirm all exemptions are applied correctly.
Use the warranty process
Follow the builder’s warranty instructions and keep communication in writing. Track response times and outcomes. If issues persist, escalate according to the warranty terms.
Keep a complete record
Store your contract, selections, change orders, permits, inspections, manuals, and warranties together. Good records make service calls, insurance claims, and eventual resale smoother.
Magnolia new-build buyer checklist
- Before you pick a lot: Confirm city or county permitting, check FEMA flood risk, verify water and sewer provider or septic, review CC&Rs and HOA details, and estimate taxes including any MUD rate.
- Contract stage: Review price, deposits, timeline, change orders, upgrades, warranties, closing costs, title company, dispute terms, and HOA documents. Consider attorney or agent review.
- Financing: Compare loan types and lender incentives. Confirm FHA or VA requirements if applicable and plan for appraisal risk.
- During construction: Schedule foundation, pre-drywall, and final inspections. Keep change orders in writing. Track permits and inspection approvals. Confirm utility activation and drainage plan.
- Pre-closing and closing: Conduct orientation and final walk-through, document a punch list, and collect warranties, manuals, permits, and as-builts. Start insurance on the closing date.
- After closing: File homestead exemption, monitor new tax assessments, follow warranty claim steps, and keep all records.
Work with a local guide
New construction in Magnolia offers space, value, and the features you want, but success comes from details. You deserve a team that understands MUDs, permits, timelines, and how to negotiate a fair contract while keeping your build on track. If you are exploring new construction anywhere in the Magnolia area, connect with Bolanos Realty for local guidance and a clear plan. Schedule Your Free Consultation.
FAQs
Should I get an independent inspection on a new Magnolia home?
- Yes. Phase inspections like foundation, pre-drywall, and final help catch issues early and verify work before walls are closed.
Can I negotiate with a builder in Magnolia?
- Often yes. You can discuss price on spec homes, closing costs, upgrades, allowances, and lot premiums depending on market conditions.
Can I choose my own lender and title company for a new build?
- Usually. Builders may offer incentives with preferred providers, so compare total costs and terms before deciding.
What warranties do Magnolia builders typically provide?
- Programs vary. Many include workmanship, systems, and limited structural coverage. Get exact terms and the claims process in writing.
What if my builder misses the completion date?
- It depends on your contract. Ask for clear milestones and remedies for delays before you sign, and document any extensions in writing.
