Buying a home is a big step and can be overwhelming, whether you are a first-time homeowner or have gone through the process before. Roers Real Estate is here to help you with the purchase process. There are two options when it comes to choosing your home. You can search what it currently on the market, or you can look into the option of building a home custom for you. What steps should you take when purchasing a home? Is building or buying a better option for you?
We met with our Roers Real Estate agent, Anne Kallhoff, to ask her some questions to help you.
In general, what are the benefits of buying a home?
When you buy a home, your money is going toward equity in your home. When you rent, the money you are putting toward your rent each month, isn’t money you will ever get back. When you are paying toward a mortgage, you are building equity in your home and you will usually see a return when it comes time to sell your home. When you own a house, you also have the ability to make any changes you want (paint, flooring, remodeling, etc), and you can have pets if you choose without penalty.
What is the first step a person should take when they are thinking of buying a home?
I always tell my clients to meet with a lender in person or over the phone to get an idea of how much they can afford. This will help so they aren’t looking at homes out of their budget and will ensure they don’t miss out on features they could have that are within reach with their budget.
What are the benefits of building vs buying a home?
When building, you’ll see the same benefits as purchasing a house already listed on the market. In the building process, homes can be fully customized, you can choose finishes you want throughout your entire home and find or design a layout that works well for you. If you purchase one that is already on the market there are other benefits such as being in established neighborhoods, lower specials and character homes.
As far as price, is there a difference between building and buying?
The costs with building and buying can vary. One of the biggest benefits of buying is a tax abatement provided by the local cities. Depending on the builder you work with, the lending process can be quite different. A construction loan has to be taken out by someone when building a home. Most of the time, the builder does this and you only have to take out a standard mortgage loan, but occasionally the builder will require you to take out the construction loan. When purchasing an existing home, you typically have to take out a standard mortgage loan. The specials can tend to be higher with new construction.
What is the average time to close when buying or building?
When you buy an existing home, you can typically close within 30 days pending appraisal and inspection. With new construction, you are looking at anywhere from 90 days to a year, depending on the builder and the level of customization.
Who can new homeowners contact to go through options?
A realtor and/or lender are the best people to contact first to start the home buying process. A lender can tell you how much you are pre-approved for, and a buyer’s agent is there to assist you, the buyer, with any questions regarding finding the right fit for your next home.
We hope this information helps! Roers, Real Estate agent Anne Kallhoff is here for you with any questions.
Happy house hunting!
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