loan officer Las Vegas

Building a House vs Buying

Homeownership can be expensive. Many people want to conduct extensive research to find out the best ways to save money as they’re preparing to buy a new home. However, what if you want to build a home from scratch? Deciding whether to buy or build a home raises another set of questions. Most importantly, you’ll want to know which is the most cost-effective of the two. An experienced loan officer Las Vegas will explain the advantages of both.

loan officer Las VegasComparing the Cost – Cost of Building a House vs Buying

If you are weighing the advantages of buying or building a home based on the upfront cost alone, statistics show that it is more expensive to build a house than buy an existing one.

        • Average cost of a new home: $485,000
        • Average cost of an existing home: $307,000

Generally, you’ll save money if you choose to get an existing home instead of building your own. However, there are other considerations to keep in mind when deciding which option is right for you. Keep in mind that other factors, such as your geographic location, the size of your home, and the building materials you use, can also influence your new home’s final price.

Buying vs Building a House

For most homeowners, that is the ultimate question of homeownership. Suppose you are thinking of buying an existing home. In that case, you’ll need to keep several factors in mind, including any associated homeowners association fees, property taxes, the price of the home, market trends, location, and the home’s condition. Additionally, you may arrive at your new front door with a list of things that you want to have or need to have for your new home, which might range from landscaping designs to the essentials such as new flooring or appliances. Buying a piece of property and then building your own “dream” home, in contrast, leaves you with a blank canvas to start. However, there are pros and cons to keep in mind with either option.

Purchasing an Existing Home loan officer Las Vegas

If you decide to buy a new home, you’ll get two significant advantages, which are cost and the convenience of having a home that you can move right into, even if you’re planning to make some updates and improvements along the way. When you decide to buy a new home, you can search for “loans near me” to find the most favorable rates available. When a mortgage lender gives you the green light to shop for a home by pre-approving your application, you can make an offer for any home that you spot that you want to buy. Working with a real estate agent will expedite the process even more. A real estate agent can help you work through negotiations, finalize your paperwork, and close on the deal. You might be able to move into your new home within a month or two.

Building a Home

If you want to build a home instead, there are certain advantages and disadvantages to consider. First, you will need to find a property where you want to build your home. You will also need to find a contractor or architect to help construct the new house. While you may need to choose your appliances or some housing materials if you decide to renovate or add on to an existing home, you will need to select all the requisite building materials, fixtures, and appliances if you are starting from scratch and building a new home. Additionally, you’ll need to make sure that the land where you choose to build your home is also set up for access to sewage disposal and municipal water supplies, or if you need to get a well or septic tank instead. You’ll also need to make sure you have all the right permits to complete the home construction.

Although there are many considerations to keep in mind before building a home, there are several critical advantages over moving into a pre-existing residence. One of the top benefits is that you will indeed have a dream home if you build your own, as you’ll be able to design your place from the ground up. You can also make sure that your home is more energy-efficient, which will save more money on your utility and energy bills. Building a new home also means that the house and all of its appliances and materials are new, which means you can expect to get the maximum lifespan out of all the components. You won’t have to worry about renovations, upgrades, or renovating an existing home, which can be quite costly.

mortgage companies Las VegasAdditional Considerations

Once you decide to buy or build a home, there are other practical considerations to keep in mind. For starters, experts recommend in either case to spend no more than 25 percent of your take-home pay on house payments each month. Otherwise, you may get into trouble with mortgage companies Las Vegas if you default on your loan.

If you are wondering what goes into the price of your monthly payments each month, the following items may be included:

  • Principal loan payments
  • Interest
  • Property taxes
  • Homeowners insurance

Some additional fees may apply too, including private mortgage insurance (PMI) if your down payment is below the standard 20 percent. You may also need to factor in the cost of homeowner’s association fees if applicable. To determine your monthly payments for your new home, considering using a mortgage calculator to determine your predicted payments.

Finding a Loan Officer in Las Vegas

Another consideration when deciding to buy or build is determining what kind of loan you can get. Speaking with a mortgage lender can help you answer the question of “what loans near me can help cover the cost of a home?”. Keep in mind that loans are available for both buying and building a new home.

Whether you decide to buy or build your next home, a loan officer Las Vegas is here to help. Contact us today for advice and assistance.

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