Finding the house you want has been a challenge. Not many choices and higher than you would like mortgage rates. One alternative is to go with a house that doesn’t even exist – a yet to be built new home. There can be several advantages.
The most obvious is that everything about the house is shiny and new. That means there should be less to worry about in terms of repairs and maintenance. Most of the time, a new home offers you the chance to pick most of the fixtures, finishes and features you want with less compromise than with a resale home.
Josée Rose and Zoe Rosenberg of Business Insider spoke with “Erik Heuser, chief operating officer of homebuilder Taylor Morrison, told Business Insider that more and more hopeful buyers are looking at newly built homes.
Heuser explained that folks who choose to finance their home purchase through their bank are going to get whatever that bank's rate is. But "we as homebuilders are able to offer, really it's four tools": closing cost assistance; a temporary rate buydown, which is a lower initial payment; a permanent rate buydown, which is a higher upfront cost but provides a lower payment for the duration of the loan; and extended-lock rates for homes that are under construction, where the homebuilder is "able to provide security on what the rate is," Heuser said.
In short, buying a new home may be the most affordable way into homeownership these days.”
The two biggest downsides to a new home purchase is time and location. A new home can take up to a year to build. Not all of us want to wait that long. The second challenge is location. A lot of new home developments are not in the most desirable established areas a lot of want to live. This is because the land available for development tends to be “outside” of town. But if these factors don’t bother you, a new home may be just the ticket. There is lots to learn when you’re buying any home.
