When you’re looking to move, building is often an attractive option. However, the pros, cons and the details of building a new house from the ground up aren’t always easy to find. This quick post will cover some of the basics so that you can decide if moving forward with new construction is right for you.
Types of Homes
When you’re thinking about new construction, the sky’s the limit. You can literally choose any style of home, including a mid-century modern, classic cottage, Tuscan villa or a log home. But, which is the best? That depends on your needs, budget, and personal style.
Two of the most popular styles of home are a traditional ranch and farmhouse. Better Homes & Gardens explains that the ranch-style home goes back to the early 1930s. They are single-story, easy to update and can be added onto with relative ease. A farmhouse-style home is likewise practical and typically features hardwood floors and clapboard siding. Either style home may feature a front porch, but a farmhouse is more likely to have a covered outdoor area attached to the home.
A log home is a terrific option as these homes are beautiful, affordable and durable. Honest Abe Log Homes can design and build a customized log home built to your specifications. What’s more, a log home can be designed in the farmhouse and traditional ranch styles as well as the chalet style most people associate with a log home.
Ways to Pay
When you’re building a new home, the mortgage process has a few subtle nuances different from a traditional home loan. You will still have to have an excellent credit score and income to support your forthcoming mortgage. It’s a little bit tougher to get a mortgage for a new construction home, so the sooner you evaluate your credit score and credit worthiness, the better. One type of loan you will likely consider is a construction-to-permanent loan. In this example, Redfin explains that the lender will actually foot the bill of the work as each phase is completed. Once the home is finished, the loan converts to a traditional mortgage.
Pros and Cons
Aside from being able to choose your style and working a little harder to get a mortgage, there are lots of pros and cons to building your own house.
On the plus side, you get exactly what you’re looking for. Even if you want a ranch-style home, you can customize how many bedrooms, how high the ceilings are, and even where you want it placed on your land. Another benefit is that there is less maintenance. According to Discover, most homeowners can plan for about one percent of their home’s value in maintenance costs annually. This means that you can expect to spend an average of $4,000 on a $400,000 house each year. Since a new house will have fewer issues and will likely be under warranty, you’ll save money in unexpected maintenance.
The less-than-sunny side of buying a home: cost and time. Because you’re getting everything bright, shiny, and new and labor today costs more than it did 20 years ago, you’ll probably pay more for your new home. It can also take several months for a modest, 2500-square-foot home to be completed. This means you may have to decide where to live in the interim if you are selling a house to afford your new construction.
Overall, building a new home is a great choice for young families that need a custom solution for their lifestyle. It’s also a smart idea for those looking to age-in-place as a new home can be fully designed to accommodate changing needs. There are a few bumps in the road, however, the new construction may not be for everyone. To decide, start by looking at your credit, budget, and how quickly you need to be settled. Then, contact your home builder for more information or to get started designing the home you’ve always dreamed of.