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With many U.S. markets still leaving potential buyers out of a purchase from lack of inventory, it could be beneficial to consider new construction or building your own house. Freshly built from the ground up, a new construction home may allow you to build and fund your dream home. Before you jump into the process, it’s important to learn the ins and outs of potential scenarios you may encounter along the way.
You may encounter model homes when you begin to consider builders or developers. Keep in mind, these are often presented with the best upgrades and professional staging to grab your attention. Model homes tend to look more luxurious than what your home may look like. Builders and developers will often do this to demonstrate the customization a builder offers, allowing would-be buyers to experience the full design potential of the home.
Building from the ground up is a good choice for buyers who aren’t in a hurry. On average, it takes anywhere from 7 months to just under a year to complete new construction. Things that may affect your building timeline can range anywhere from weather conditions at the build site to material supply delays.
Depending on the state of a development project, you may be able to snag a model home, premium upgrades and all, for a deal. Once a certain percentage of units in a development have sold, the builder is more likely to sell the model home. Often, the longer it sits vacant on the market, the builder loses money.
Asking questions along the way helps to keep everyone on the same page to continually manage expectations. You should ask questions about the builder’s past work, financing, and about the building schedule. Be sure you know who oversees the construction in case any issues arise. In addition, asking what percentage of units, properties, or plots that have sold so far can be a good indicator on how far along development is.
Some other questions you may consider asking:
Your budget and purchasing power will determine your time frame, areas you’ll be able to build in, and a starting price point. Homestead Funding offers a variety of construction loans, each as unique and special as your financial situation. To learn more about how you can build the home of your dreams, contact us today.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.