Think about having your own home; you and your family under a roof, in a space you can call yours. It could be a house you bought and restored. Or perhaps, you have financed a custom new home construction. We bet that’s a very comforting thought that puts a smile on your face. But there’s no reason why it has to stay a thought. You could be making a new home construction checklist and actualizing that dream!
According to the California Association of Realtors (CAR), sales of homes and real estate property rose by 44% in July alone! If you are still worried about the pandemic’s looming effects, you may be getting yourself worried while other people are becoming new homeowners. But that’s not the only reason you should consider buying a home. After all, you don’t make decisions because that’s the current trend.
Another reason financing a new home construction in 2021 is a good idea is the current mortgage rates. In mid-July, the mortgage rates in the state dropped to 2.8%! This is the lowest it has been in 50 years. It won’t always stay at 2.8%, but you can be sure to get a mortgage rate below 3.5% in the coming months. With mortgage and interest rates reaching an all time low, buying a home may just be the best decision you make in 2021.
If you’ve been following the trend, you might have noticed that the price of homes in California is going up. There was an increase of 4.3% between February and August. An average house in the state of California sold for about $707,000 in August. This follows the rising demand for homes in the state. In August, San Francisco Bay and Central Coast areas saw up to a 10% increase in house sales. However, this will change as we go into 2021. While some experts predict a double-digit decline is predicted for home sales in California in 2021, others expect that prices may rise up to 5% in the new year. However, regardless of the trend, the low interest and mortgage rates ensure that buying a house can’t be a bad idea.
Undoubtedly, the golden state is a beautiful place to live in. However, buying a new home isn’t a simple project. It’s definitely not as easy as going to get groceries in the supermarket. You have to be very careful and avoid bad decisions.
Before buying a home in California, you have to evaluate your financial state. Check your income sources, credit scores, and your dedication to current housing costs and needs. If you have no problem with all of these, it shouldn’t be difficult to get a loan or a mortgage pre-approval. Make sure you have a budget, an idea of the type of home you want as well as the neighborhood you want to live in.
You can search for houses yourself or talk to a real estate agent that acts in both you and the seller’s interest. Once you have found the “perfect” home, you can make an offer. Be sure to make an offer that is fair to you. Don’t go over your budget because you’re anxious and feel like you’ll lose the opportunity if you don’t close the deal immediately. Houses typically stay a few weeks before closing. But even if it closes, more opportunities will fit your budget. Once you’ve agreed on a price, do an appraisal, inspection, and close the deal. Make sure you are present for the inspection.
If you are taking a mortgage for a house, you have to make a down payment and an Earnest Money Deposit. The down payment may be about 3-4% of the total price of the home. If the average cost of a new home is 700,000, you may have to pay about $28,000 as a down payment. You also have to pay an Earnest Money Deposit (EMD) to show your seriousness to the seller. The EMD may range from $1 to $2000.
Other payments include title fees such as title search, title settlement and insurance, escrow fees, property taxes, state recording fees, credit report checks, inspection fees, appraisal fees, agent fees, and Homeowner Association (HOA) fees. You may not have to pay some of these fees as they might fall to the seller. You can negotiate with the seller on which expenses to cover.
First, make sure you are in the neighborhood you want to be for a considerable amount of your life. If you are in the house of your dreams but in the wrong community, you may find yourself looking for another buyer and selling at a low price. Also, during the initial inspection, check every part of the house thoroughly. Check the exterior as closely as the interior. You may purchase a home for a reasonable price but end up spending twice as much fixing it. Check to make sure you are comfortable with the house design, size, structure, and quality. If you have any questions during the inspection, make sure to ask and get a satisfactory answer.
Some features to always look out for during the inspection include the foundation, the HVAC system, the roof, plumbing, and septic system if available.
The most important advantage of buying a home is that it offers you convenience. You don’t have to go through the process of design, approval, and construction. Once you close the deal, you may only need to make a few improvements, renovation, and restoration, and you’re ready to move in. In that regard, you may save a lot of time. However, buying land for home construction offers you more flexibility. You don’t need to spend so much time hunting for the perfect house, and you don’t have to forgo one feature because you can’t have it all. Financing a new home construction allows you to have it all. You can also monitor your new home construction cost, assured that there’s nothing hidden from you.
When you get in touch with a new home construction company, you can work with them on the design and model of the house you want. You can also attest to the quality of materials used, and if you wish to use environmentally friendly materials, that’s precisely what you’ll get. With a custom new home construction, all your ideas of perfection come to life.
If you would like to buy land for a custom new home construction, it is important that you talk to the right construction company. Actually, this also applies if you are renovating, reconstruction or making repairs to your newly purchased home. Element Homes is that custom home building services company that gives you assurance of a long lasting home and peace of mind. You don’t want to keep refixing your home due to consistent damages. Element Homes can help you build the custom home of your dreams. We offer custom home building services that are qualitative and affordable. Contact us now to get a free estimate.
If you’re considering financing a new home construction in the coming months, it may just be the best decision you’ll take. This guide will tell you what you need to know.Read more
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