You’re looking for a new home, and you’ve got questions. You’ve done some research and asked opinions from homeowner friends, but what’s fact and what’s fiction? Does a new home cost more than a used home? What kind of financing do you need? Is building a new home too much work? We want to set the record straight by debunking some myths about buying a new home!
Myth #1 – You don’t save money by buying a new home.
Yes, typically, new homes cost much more than resale homes because of the features and design options they include. But there are also a number of ways a new home can lower the total cost of homeownership in the long run. For example, the energy-efficient features that come standard with new homes can lower monthly utility bills compared to a typical used home. Homeownership also offers financial advantages such as deducting mortgage interest payments from your taxes, and building equity with the value in your home.
Myth #2 – Renting a home is always cheaper.
Renting a home can actually be more expensive than owning one. Homeownership can help you save significantly at tax time by deducting the mortgage interest, mortgage insurance and property taxes you pay. It also builds equity over time that can be used to cover loans, cash out refinances, and lines of credit which can be used to improve your home and boost its value. Over the long term, buying a home has many financial benefits, while with renting, you end up exactly where you started; with nothing.
Myth #3 – Building a new home is too much work and it takes forever.
Building a new home is exciting – and our thoughtful processes make it very seamless. We guarantee you’ll enjoy the whole experience from choosing your home site and customizable floor plan with our interactive floorplan gallery to picking features & finishes with our Color Specialist in our Design Center! We’ve simplified our process to seven easy steps that can have you with keys to your new home in as little as 6 months. Check out our process, including 30-day welcome visit, and a 90-day and one-year anniversary visit from our Warranty Manager.
Myth #4 – You must have 10 to 20 percent saved for a down payment.
In reality, you may only need as little as 3 percent in order to afford a down payment. Although it’s generally smart to pay as much up front on a home as comfortably possible, there are options for home buyers who don’t have enough savings to make a large down payment. If this is your first or even your second home, you could qualify for a low down payment mortgage. Speak to a mortgage lender to learn more.
Myth #5 – Your credit score needs to be perfect.
Even if your credit isn’t excellent, that doesn’t mean you won’t be able to qualify for a mortgage. It’s true that the higher your score, the better your interest rate will be, (anything above 670 is typically good), but each lender has its own minimum score, so shopping around certainly has its benefits. There are a number of sites to get annual credit reports, so if a new home is still down the road a little for you, then start working on raising your score now and gathering all the information you need.