Every single year, first-time home buyers decide to settle down in a home of their own. Some people prefer to buy a home for themselves that has been previously occupied. However, others want to take time to find a plot of land to build their own home. As a result, here are some facts about new construction homes and more.
First and foremost, it is important to take note of trends in the home buyers market. For instance, in the year of 2017, nearly 33% of all home buyers were millennials. There are model homes available and newly built homes available as well for these younger generations to purchase and buy. Therefore, no young home buyer needs to rush into any situation that they do not feel comfortable with.
For a frame of reference, home buyers should pay attention to averages. For instance, a study was recently conducted to determine how much the average United States borrower will put down on their home when they decide to buy it. The average home borrow puts down just about 5% of their home’s price. So keep this type of number in mind as you move forward with getting a brand new home.
Make sure you take the time to run your credit score before getting involved with new construction homes. New home builders cannot start working until you have gotten a loan or paid in full. However, credit scores are going to really affect and alter your chances of potentially getting a loan. For instance, minimum credit scores for standard mortgage loans are just about 620. The very bare mininum score you can get a loan for is just about 500.
A credit report produces a credit score for you to determine where you stand in the eyes of lenders. There are so many businesses that offer this service for free. Therefore, you can get a credit score within 24 hours and will not have to pay money. Plus, a credit score is important for other situations not just getting a home loan.
According to ATTOM Data Solutions, an estimated 34% of United States homeowners have 100% equity in their properties, meaning they have either paid off their entire mortgage or did not have one. If you want this situation then you need to be as patient as possible. It is not easy to get equity in a home and that is why less than half of all homeowners have equity. After all, loans and mortgages are not that easy to pay off and homes are not that easy to buy.
Luckily for anyone that wants new construction homes, the housing market is trending upwards after a rough collapse. Since 2008, when the housing market was really suffering, it has managed to grow and trend in a positive direction. An 11% growth for the housing market is not just impressive, it is absolutely great for homeowners of all ages. So younger millennials can get their new construction homes much easier than in 2008.
According to the United States Census Bureau and the Department of Housing and Urban Development, an estimated 1,257,000 new homes were built in April 2018. So there are plenty of new construction homes that are being put in neighborhoods across the country. After all, the population rises each and every year which means that there need to be more homes for families. As a result, there are more and more new construction homes being built!
In Conclusion
Each and every year, there are plenty of consumers looking to make a big move into their new home. Some want homes previously built and some want brand new construction homes in brand new neighborhoods. Make sure you get just what you want in your home and more!
