Homebuilding Tips

 You’ve probably heard that now’s the time for buyers to get into the market. The main reason for this is interest rates - that is, historically low interest rates.

Purchasing your very first home is one of the most exciting, important steps you’ll ever take. However, the process can be stressful and even scary at times, since there’s so much riding on it. One of the most common questions we encounter from first-time homebuyers revolves around how much to save for their new home.

Although the answer to the question, “How much do I need to save for my first home?” will vary for each individual homeowner, there are several factors that will likely come into play for everyone:

Most people can’t fund the construction of a new home using cash, but that doesn’t mean it’s impossible to build your own custom home. Much like getting a mortgage to purchase an existing home, you can get financing to pay for the costs of new construction. Also like a typical mortgage, there are several different financing options available to you. The one that makes the most sense for you will depend on factors such as:

• Cash available for a down payment
• Ability to make monthly payments
• Credit score and history
• Household income
• Existing debt and assets

If you’ve never built a new home or gone through the financing process, it can feel intimidating. There is always a lot of paperwork, and the many options can be confusing if you don’t understand all the details. However, you don’t have to go through it all alone.

You can buy a new house at any stage of life, but there are a few key points when it just makes sense to own a home that truly matches your lifestyle. Living in a space that is too large or too small can create unnecessary challenges. Trying to stay in the same place because change is hard might actually be more difficult in the long run. Whether you are a first-time homebuyer or are ready to move on from your current situation, it might be time to think about taking the next step toward purchasing a new house.

When is the right time to buy a new home? Often it’s when there are major changes happening in your life, such as:

When building a new home, budget is always a consideration. If you’re like most people, there is an upper limit to what you can build with the resources you have available. If you don’t yet have the funds to build your dream home, you can save money by using your existing space to your advantage. Spare room rentals will allow you to save money for a down payment on a construction loan or pay off more of your existing mortgage faster to build more equity.

Construction loans can be structured in a number of ways, depending on whether you also need to purchase land or already own a lot. If you already own land and want to build on it, you can finance your home in a variety of ways. Every lender is different, so it’s always a good idea to discuss your options with various providers to find the solution that works best for you.

A home warranty gives you the peace of mind that if your home has structural issues within a certain period of time, you will be covered financially. For example, soil settling can cause structural distress to a load-bearing element such as the foundation, floor framing, or columns. This is the type of event that is totally out of the builder’s control, but if you have a home warranty, you won’t have to pay out of pocket to cover the repair costs if something like this happens to you. A home warranty also typically covers defects in materials and systems for a certain period of time.

Affordability is consistently ranked as the top concern for people shopping for a new home. It’s no surprise that homebuyers like you want to ensure that they are getting a good deal, regardless of whether you’re a first-time buyer or a more seasoned homeowner who is looking for your dream home.

Building your first custom home is an exciting, unforgettable experience. Of course, for many customers, it can also be a huge learning opportunity, because purchasing a custom home is so much different from buying a traditional, prebuilt one. It’s no wonder we encounter a lot of people who have questions about the financing process, which is unfamiliar territory for most first-time custom homebuyers.

Building a custom home isn’t just a chance for you and your family to upgrade to the house of your dreams. It’s also a solid investment. With just a bit of planning, you can ensure that your home will continue to gain value over the years. And down the road, when it comes time to sell your custom home, you’ll be in a great position to make a strong return on investment (ROI).