Lots of people looking for a new home face a fork in the road: the choice between buying or building. While buying an existing home is the most commonly taken path, there are some advantages to new construction.
The Ripple Effect of the Supply Chain
If you’ve been shopping for a new home, chances are you’ve felt some frustration over the choices you’re seeing; there’s a housing inventory shortage. According to the National Association of Realtors, as of April 2022, active listings of homes are down 22% for the year. One major reason for this is that supply chain issues have slowed new home construction and pushed more homebuyers into the existing-home market. Though the difficulties homebuyers face right now have roots in the housing crisis of 2008 and extend to today’s increase in Millennials in the market. And so perhaps the answer is not to compete in the existing home market, but to build your own home.
The Benefits of Building Your Dream Home
There’s one big reason people choose new construction over an existing home: customization. Whether you choose a semi- or fully custom home, you may be able to select everything from the types of heating and cooling systems to plumbing, as well as the look from the overall architectural style down to the smallest design detail.
Won’t new construction cost me more money?
While it can be true that building a home often costs more than buying an existing one, that’s not always the case. And there’s the long-term financial gain to think about – resale profits are often higher with newer homes, and you’ll almost certainly spend less on maintenance and repairs with a new home compared to an existing one.
Lock in a Rate at the Start of Construction
Anyone considering a mortgage loan these days has almost certainly been watching interest rates rise. While, historically speaking, mortgage rates are still attractive, securing the best rate you can before they go even higher is advisable. Which is what makes it all the more sense to lock in a long-term interest rate at the start of construction with a One Time Close Construction loan. While other kinds of construction loan programs often come with two sets of closing costs – for two loans, construction and permanent financing – this program only requires the borrower to pay closing costs once. People with credit scores as low as 680 may be able to secure these loans for up to $1 million.
Whether you choose to buy or build, the Decker Group at First United Bank Mortgage is here with a variety of financing options. Give us a call today at (972) 591-3097.