Building a brand-new home is a dream for many. And although there are many benefits to doing so, many people have fears about unknown costs or are unsure how to financially plan for this exciting (but huge) step. Consider some of the tips below when navigating the purchase of a newly built home.
- Manage Your Debt and Credit Score. You don’t have to have perfect credit or zero debt, but having a lower debt-to-income ratio will help when applying for the loan that you want. Securing a loan for a home you are building is different than securing a loan for a resale home. Making yourself financially appealing to lenders is important. Have clear expectations for what you need your financial situation to look like before doing anything else.
- Set a Budget. This is an obvious but important step. Decide on a monthly payment that you are comfortable with. Make sure that your payments leave room for an emergency funds and general budget flexibility. Since you will be building a home, there will be more options for customization and extra spending. Having a strict budget set can help keep you on track. An unfavorable scenario is to become “house poor” due to overspending.
- Prioritize Your Needs. It can be easy to get swept up in all the possibilities of a newly built home and break your carefully crafted budget. Use the “MoSCoW” method when planning. Decide on the items that your house Must have, the things it Should have, the things it Could have, and be realistic about what it Won’t have. Breaking down all aspects of your dream home with this method will help you keep perspective. You can also re-prioritize as you move through the process. If you originally had high-end quartz countertops in the “Must have” column, but feel the need to tighten your budget, move it over to the “Should have” column. You can then tackle all the “Must haves” that you can’t be flexible with. This will help keep you on budget without feeling like you are sacrificing things that are important to you.
- Take Advantage of Money Saving Features. Building a home in 2019 is not the same as it was 20 years ago. Technology has improved, allowing for homes to operate more efficiently and, in turn, save you money. All home built by LifeStyle, for example, meet our SunSmart℠ building standards, saving our homeowners at least 70% on their monthly electricity bills when compared to resale homes. It is important to speak to your builder about what energy-saving options are available and what is already included.
- Find a Reputable Builder. This might be the most important tip of all. Finding a builder who you can trust to have your best interests in mind, is key. A builder who cares about you will help you design a home that meets your budget, while meeting your needs. Your builder should focus on completing quality work and using quality materials. Working with a reputable builder can keep your dream home from turning into a nightmare.
Luckily, building with LifeStyle Homes allows you to accomplish all of this and more. If you feel like you are ready to start planning for your new home, contact us at (321) 727-8188 ext. 2 or visit one of our vibrant communities in Brevard and Indian River counties.
