There are a lot of things to consider when deciding whether to build or not. For many people, the question boils down to how much house they can afford, but there are a lot of other factors to take into consideration.
One of the main reasons you should build on your lot is that it is easier to get financing.
A lot of people think that they have to have a lot of equity to get a mortgage, but in fact, they don’t. There are lenders out there that will lend to people with less than 20% equity.
This is why many first-time homebuyers and families are opting to build on their lots.
You can also save a lot of money if you are buying a new home. The savings can range anywhere from $5,000 to $20,000 or more.
If you are planning on moving in a few years, you may be able to use the savings to purchase a bigger home.
So, what are some of the reasons you should build on your lot? Let’s take a look.
You Can Get Financing
There are a lot of factors that go into the financing of a home, but one of the most important is the equity in the home. If you don’t have any equity, you are not going to be able to get a mortgage, even if you have a good credit score.
If you have a lot of equity, then you will be able to get a better interest rate, which will help you pay off your mortgage faster.
You can also get a mortgage with as little as 5% down. This is called a “cash-out refinance.”
If you are buying a new home, you may not have the equity in the home to use as a down payment.
You can also use a home equity loan to finance the purchase.
With a home equity loan, you can get up to 100% financing.
You Can Save Money
When you are building a home, you are saving money every step of the way. You will have to pay for the land and the foundation, but you are going to be saving money on your mortgage payments and on your house insurance.
You can also use the money you are saving to pay for a new car, a new appliance, or even to finance a vacation.
If you are buying a new home, you can use the savings to purchase a home with a better mortgage.
You Can Get a Better Mortgage
Many people don’t realize that you can get a better mortgage if you build on your lot.
When you build a new home, you are likely going to get a better interest rate on your mortgage.
Many lenders will give you a better interest rate if you build on your lot.
If you have been renting and are moving to a new home, you can use the savings to pay off your current mortgage.
We hope you found this blog post Why You Should Build on Your Lot useful. Be sure to check out our post What I Wish I Knew When I Moved for more great tips!