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| Construction Loan |
 Most
residential construction is done by builders who
purchase large tracts of land and build a number of
new homes to form developments. Other builders
specialize in building custom homes for individual
buyers, usually on land the buyer already owns.
Both
options give you all the benefits of owning a newly
built home, but there are important differences in
the construction timeframe, level of customization,
and the time and effort you need to commit.
Building around your schedule
If
moving into your new home quickly is a priority, you
will probably want to buy a home in a development.
Each home usually takes less time to build since the
floor plan is already prepared and the materials
purchased. Depending on how long the development has
been under construction, you may be able to choose
from homes that are at different stages of
construction. So if you're on a tight schedule, you
may want to buy a home that's nearly finished, or
one that's already fully built.
Building a
custom home will probably take much longer - at
least six to 12 months. With many more things to
consider - designing the architecture, choosing the
materials, and buying appliances, to name a few -
you should be ready for an involved process.
Customizing your home
If you
buy a home in a development, you will probably have
a few floor plans to choose from, each with it's own
set of standard and optional amenities. That, plus
whatever upgrades the builder offers for materials
and appliances, is basically the extent of your
customization options.
If you
build from scratch, however, your ability to
customize every aspect of the home is limited only
by your imagination - and perhaps by your budget.
The appeal of custom homes is that they give you an
opportunity to live in a place that is built around
you.
Staying involved
Because floor plans and features are more
standardized for homes in a development, you don't
have to be any more involved in the construction
process than you want to be. That's a benefit if
you're buying a newly-built home more for its
newness than for its uniqueness.
Building a custom home, on the other hand, is a much
more complex and time consuming project. That's why
people who build custom homes tend to be those who
plan to stay there for the long term - if you're
building your dream home, it's worth spending the
time and effort to get it right. |
