The longer you explore the housing market, the more you see finding your “dream” home can be difficult. Every home has flaws, and nearly every home requires that you “settle” a little on your vision. But not all families want to settle, and that is why you may consider exploring the idea of building a home yourself – one created from scratch according to your specific needs.
Both are possible with home loans from Open Mortgage. But building a home isn’t easy. There are pros and cons to both buying and building that need to be considered before you decide which option is best.
Advantages of Home Buying
- The home is ready for you to move into without many delays.
- You know exactly what you’re getting when you make the purchase.
- There is less to organize, plan, and, worry about.
- Homes are often already in existing good neighborhoods (rather than empty land).
Disadvantages of Home Buying
- There is a limited selection of homes available.
- There is more competition over the home you want.
- The home has aged, and may suffer from age-related damage.
Advantages of Home Building
- You get exactly what you want, with control over every part of the process.
- You only need to look for land to build on.
- You are getting everything brand new, with all that entails.
- Your home’s value may be higher in the short and long term.
Disadvantages of Home Building
- Costs might be more. It sounds cheaper to build (and it can be), but often is not.
- There is a longer wait time before you can move in.
- There is a lot to organize, and a lot of decisions to make.
- Problems may arise during the build that have lasting repercussions.
- Empty lots may not be available in your ideal neighborhoods.
Which Option is Best For You?
In addition to the items above, homebuilding and homebuying have different lending options and requirements which could affect your investment. Older homes may also have “character” that new builds lack, but newer buildings may provide more satisfaction to the person who was able to choose every component of the build.
There are advantages and disadvantages to both buying a home and building a home, and you should consider both options thoroughly before choosing between the two. At Open Mortgage, we offer One Time Close Loans, FHA Loans, USDA Loans, VA Loans, and a variety of other lending options to ensure that you have the financing you need for building a home or buying one.
For more information, contact one of our friendly loan originators today!