Sometimes owning a new home instead
of renting or living in an older home means adjusting our
expectations to our incomes, and dealing with hard financial facts
even as we dream of the fantasy houses we see in glossy magazines.
Many factors affect the cost of a new home, including financing,
construction costs and even local regulations. But, there are things
you can do to help keep the price within your budget range.
The downpayment and monthly mortgage
payments can often be the biggest hurdle new home buyers face so
shopping around for the right mortgage options can be an important
way to save money. For instance, VA or FHA loans sometimes require
no/low downpayment. There are state assistance programs available
for first-time home buyers. Sometimes first-time buyers turn to
parents or relatives for help with downpayments. Also, adjustable
rate mortgages can help keep monthly payments within your comfort
range.
One way to keep the actual cost of a
new home within your budget is to do some of the finishing work
yourself. While structural construction is best left to
professionals, some homeowners choose to do their own painting and
woodwork finishing. These jobs certainly are not easy, but may be a
way to create a substantial savings. There are also a wide range of
price levels for some materials such as cabinets, carpeting,
appliances and bathroom fixtures. What people choose to put in their
homes is as unique as each person. The important thing is to weigh
your options so your new home is comfortable, affordable and meets
your needs.
Another cost saving tactic is
designing a home so that rooms, like additional bedrooms, can be
added in the future. Some homeowners wait to finish their basement a
few years after they move in when it is financially easier to
complete the work.
There are added costs for regulations
that are part of the purchase price which most homeowners never
consider. Development fees and other construction charges builders
pay add more than $12,000 to the cost of a typical home. These fees
include: inspections and permits, re-zoning applications, wetland
permits, access permits, grading, fire retardant walls, setback
requirements, etc. These costs vary from city to city, so the
location of a new house may affect its cost.
With all these considerations, the
most important is the quality of your home. It must be a sound
structure that will provide years of worry-free living for you and
subsequent owners. Finding a professional builder with whom you are
comfortable working is a basic requirement in building your dream
house. Visit neighborhoods in which you want to live or where there
are comparable houses. Talk to the owners about their builders to
see what their experience was. Professional builders are happy to
supply references to perspective home owners.
Every home buyer chooses what
aspects of a new home are most important to them. Having a home on a
lake may be the dream of a boater. A traditional home with plenty of
bedrooms and baths on a cul-de-sac in the suburbs, some else’s
dream. The excitement of easy access to the theater in the heart of
a city may thrill another. Whatever your dream, thoughtful analysis
of what is most important to your lifestyle and your budget will
help ensure the experience of buying or building your new home will
be one of the most pleasant experiences of your life.
Find a
Home Buying Professional