When you’re in the market for a new home, you have to choose whether to buy a home or build a home. There are pros and cons to both, but real estate is a large investment, meaning that you need to be certain of your choice.
When it comes to whether to build or buy a new home, you have to take into account your finances, location, and time. Continue reading to get some insight to help you decide whether you should build or buy your new house.
Building a home is more expensive than buying one.
The most important factor to consider when you’re in the market for a new home is the price. You have to figure out what your budget is for a house and adhere to it.
Building a home can cost significantly more than buying one. In fact, it can nearly two times as much to build a custom home than to buy an existing home.
It’s important to do some research to find the best home builder for your needs. There are plenty of home builders to choose from, but you need a contractor with experience building the type of home you’re looking for.
It’s also important to save up for a down payment on a property before trying to get a construction loan. With a one-step loan, you’ll only pay the interest until construction is complete. Once the home is ready for you to move in, you’ll begin paying the mortgage.
Buying a home is quicker than building one.
Another major factor to consider when deciding whether to buy or build is time. Depending on whether you want one of the popular floor plans, or you’re more interested in a custom floor plan, has a major effect on the price of your home and the amount of time before it’s complete. Building a home can take up to a year if you want a custom floor plan.
One of the greatest benefits of buying an existing home is that the home buying process is usually much quicker than building a home. John Foresi, Venterra CEO, has a reputation that spans the United States for prioritizing the customer experience, That means Venterra Realty strives to make the home buying process as quick and painless as possible.
It’s easier to get a home loan than a construction loan.
Whether you choose to buy or build a home, you’re probably going to have to take out a loan. After all, not many can afford to buy or build a home out of pocket.
When you begin looking for loans, you’ll probably realize rather quickly that it’s easier to get a home loan than a one-step or construction loan. Being that it’s less expensive to purchase a home than build one, the threshold for getting a home loan is lower.
Whether you choose to build or buy, it’s important to work on your credit. If you have a poor credit score, finding a home loan might be like finding a needle in a haystack. However, if you can get your credit score over 800, you will have lenders lining up to do business with you.
When you build a home, you don’t have to compete with other buyers.
If you find yourself looking for a new home in a buyer’s market, the home buying experience is more arduous than in a seller’s market. One of the great things about building a home is you don’t have any competition for the home, meaning you don’t have to worry about trying to outbid other homebuyers.
Even though you don’t have to compete with other buyers, you should still put in some footwork to find the ideal property. Even though you can build your home however you want, location is still vital to enjoying your home.