Buying a house is an incredibly big decision to make, as well as an incredibly exciting one. As new home builders all around the country know, making such a decision is likely to have a lasting impact on your life, one that is often a very positive one in the long run. But while it is important that we do not discount this potential for positivity, we must also address the weight of the decision of buying a home. When you buy a home, there are a number of considerations that must be made, from the size of the home, the condition that it is in, and the price that you are willing to pay to have it. Before making these considerations, you should not even think about buying it.
New home builders are building new homes at a rapid rate here in the United States, with new home builders responsible for the more than one million and two hundred and fifty thousand new homes that were available by the time that we reached the April of 2018, just a few short months ago from our current date. In part, this is due to the climb of the housing market by very nearly eleven and a half percent since it plummeted back in the year of 2008, now ten full years in the past. It has taken a long time to recover, but now new home builders are back on the job, creating new homes for the American people to reside within.
Many new home buyers – of which a solid thirty two percent (almost thirty three percent) are of the Millennial generation – are looking to buy a home that has never been lived in before. There are a number of reasons why a person or a family might be interested in such a home but not a similar one that has had previous residents, something that new home builders have taken into account. For one, many new home buyers are simply not interested in having to make repairs or renovations in their brand new home. When you buy an older home, you set yourself up for the potential of having to do just that, a potential that only increases with the age of said house. However, in a home that has been constructed by new home builders, this is typically not a concern. Newly built homes are likely to be in top condition, unless it has been used as a model home. And even model homes have their perks when they are sold to the general population, as they will often be sold at a considerably reduced price.
But if you’re considering buying a newly built home that’s been built recently by new home builders, it’s likely that you’re considering a luxury home, which is likely to not be inexpensive. But taking out a loan on a home is not an uncommon thing to do. In fact, the vast majority of home owners all throughout the United States need to do so in order to afford their homes. Almost all of Millennial home buyers do so and more than half of all other generations who are home owners also take out loans to finance such a large purchase. There is no shame in taking out a loan to buy your dream house, but there ARE a number of things that must be taken into consideration when doing so. For instance, you will need to have good credit in order to get approved for a loan. In order for a loan to become a reality, a credit score that is at or above six hundred and twenty is typically required. If your credit score is below the six hundred threshold, it is unlikely that you loan application will even be seriously considered. This is for the traditional mortgage loan. If you are considering an FHA loan instead, you just need a credit score that is at five hundred or above it. However, you should seriously consider the types of loans that are available to you and whether or not they are worth taking out – or whether you should just wait to improve your credit to get the kind of loan that is most beneficial for buying a home.