For many, building their dream home sounds like something other people do. And the average home buyer has to stick with existing homes, right? Wrong. Most of the perceived roadblocks to new home construction are mere myths. Let’s clear up a few of these common misconceptions.
You’re Going to Pay More for New Construction
Upfront, maybe. But a resale home comes with repair and upkeep costs a new home doesn’t have. A new roof? Chances are you’ll be shelling out for one if you plan on staying in the existing home you buy long-term. For a 2,000-square-foot house (about the average home size in Texas), that replacement roof could cost you around $14,000. A new HVAC system? That could be as high as $13,000. Same for plumbing, electrical, and more.
On average in today’s economy, it can cost around $34,000 more to build a new home compared to buying an existing one. But maintenance costs for a pre-owned home can easily top those initial savings.
New Construction Financing is Difficult
Myth busted! One look at the First United Bank Mortgage One Time Close Construction loan and you’ll see it couldn’t be simpler. This streamlined financing option eliminates the need for two sets of closing costs, which are common (and expensive) with traditional construction loans. This unique loan from First United also offers the flexibility of either a fixed or adjustable-rate mortgage and borrowers with credit scores as low as 680 can qualify*.
Building a Home Takes Too Long
Are you sure about that? According to the National Association of Realtors, buyers typically spend about ten weeks looking for a home. With inspections, appraisals, and other requirements, closing on a home can take an average of 50 days. That’s about four months from your first search to keys in hand. Building a house could take between three and six months. So new construction could be the fastest route to your ideal home.
New Homes Lose Their Values Faster
You’ve probably heard of this with new cars: they lose about 20% of their value after you drive them off the lot. The opposite is true with newly built homes. New construction increases the chances of raising a home’s value, meaning you could get top dollar if you later sell your home. With an existing home, that resale could fall into the fixer-upper category and fetch less on the market.
Don’t let misinformation stop you from getting the exact home you desire! To discuss construction financing options, contact one of our loan experts online or call us at (972) 591-3097.
*Terms may have changed. Contact us for the most up-to-date information.