Is It Cheaper to Buy Or Build a House?

After years of working hard, you become financially stable, and decided to buy your own space which you can call your home. But then your mind is split whether you’re gonna buy a readily constructed unit or you’re going to have it built.

Readily constructed houses

Most new home buyers like the convenience offered by pre-constructed or existing homes. After the lender’s pre-approval, you’re ready to browse through many options. You can then prepare your shortlist and trim it until you’re left with the best option according to your preferences. After which, you can make your offer.

If you’re somehow confused with the options you see, real estate agents can help with an easier flow to pick the best existing home for you. They can assist you with negotiations. They can also help you with the associated paperwork.

In general, offers made for existing homes are closed in two months. Then, you can conveniently move in and start a new chapter of your life.

In many cases, costs of existing homes prove to be lower than having to build one from scratch. However, this may not be true at all times. Costs are still dependent on several factors such as location.

Another advantage of buying an existing home is the opportunity to belong to an established community. With this comes associated advantages of being near schools, lifestyle centers, and government centers. There is also a high chance that an existing home has already a preset for a grown landscape for gardens or lawns. You’ll not have to worry of the task of growing plants and ornaments.

However, there are some drawbacks with existing houses. Because they are readily made, you have to settle with its features and how the house parts are constructed. You may want to have a master’s bedroom having separate comfort room and bathroom. You may want a large kitchen, but what’s available is one with a smaller size than your preference.

Building your own house

Because of the complexities of getting functionalities matched, there are also new home buyers who prefer to build their own homes. You can carry out your own designs and have the house parts constructed according to your exact needs. However, the task alone of finding the land where to construct it is already daunting. But of course, if you have the patience and enough will power, you can find one which suits your choice of area. This means you can opt for a land which offers an overlooking view or perhaps one in a beachfront.

A new home can also prove to be more efficient in energy usage. This is because, the construction has to comply with new energy efficiency codes.

New homes may also prove to be healthier than existing homes. It can be constructed with materials that are safe for your family’s health. It can be made free of molds, asbestos, and lead paint.

The biggest drawback to new construction homes is associated with their costs. They are generally higher in price than existing homes. You have to spend for the construction materials, labor, furnishing, and other extra costs. You also have to wait longer before you can move in. But, you can have a deeper sense of satisfaction after it is constructed.

Whether it is an existing home or a new construction home you want to become your home, real estate agents in your area can always extend assistance.

Why Rent When You CAN Own?

I have Good News for you. You can OWN a home and have a mortgage for less than you are paying for rent with as little as ZERO down.

Benefits of Home Ownership:

  • No more rent increases: When you purchase a home with a Fixed Mortgage your monthly payment never goes up.
  • Tax write off- You will get a larger tax refund because you get to deduct the interest you pay on your mortgage and real estate taxes you pay.
  • You get to live in the neighborhood you want and stay there as long as you want. This means your child doesn’t have to change schools,
  • You can decorate and paint the home the way you want,
  • You even have a yard and your own driveway and or garage.
  • You move when you want to
  • When you do decide you want to move you can sell and most likely make a profit or receive some of the money you have been paying out back. When you rent and you move you get NONE of that rent money back.

Owning a Home is Possible

If you are a first time buyer you may not know the first thing about the home. If you have the right lender and the right real estate agent they can help guide you through the process so you don’t have to go through it alone. It’s important to work with someone who is going to HELP you because it is a multi step process.

Not sure if your credit is good enough.

If you have a low CREDIT Score that is OK too. Some lenders work with buyers to help them clean up their credit report so that you have a score that qualifies. They can often do this in a matter of weeks. Lenders can get you approved for a mortgage with a credit score as low as 580.

USDA and VA loans are loans that offer Zero money down. There are also Down Payment Assistance programs available as well.

There are a lot of ways to get you qualified. A qualified lender can guide you in the right direction. If you are a First Time Buyer. Some lenders have first time buyer loans as well that can save you money and help you be qualified. One lender that comes to mind who is now offering a 1% down home loan is Quicken Loans. Another lender who has been helpful in working with people is Movement Mortgage- they helped a buyer of mine clear up some things on their credit report.

There are a lot of lenders and real estate agents- choose one that is going to work with you to meet your needs and get what you want.