Three Top Reasons For Opting For New Home Construction

New home construction is often a better option than buying an existing home. Getting your dream home constructed is the best way to fulfill your specific residential needs. There are several benefits of getting a new home built, such as energy efficiency, modern decor, latest appliances, customized design and cost effective construction. However, you should consider a few things before you actually get your home constructed, such as:

1. Select a reliable builder with an excellent track record.

2. Select the design and layout for the home after proper consideration.

3. Don’t forget to check with the builder during each construction phase.

4. Remember to keep a check on the amount of money being spent.

5. Try to time box the whole process.

According to official reports on residential construction trends in the metropolitan regions of America, the number of residential units constructed annually, between the years 2001 and 2005, grew substantially across all regions. However, a sharp decline in the construction of residential units was observed between 2006 and 2007. The decline rate was higher in single family units than in multifamily units.

Three Popular Reasons for Opting for New Home Construction

Here are top three reasons that have made new home construction the preferred option:

Tailored Design

You can decide on the design depending on your particular requirements and tastes, such as a spacious home office to conduct business, an extra bedroom for guests, a gourmet kitchen, choice of flooring, etc. Also, if you take well thought out decisions during the building process, you will not need to redecorate your home for a long time. Building your own home also ensures that your home is constructed according to your life style and other functional needs.

Modern Facilities and Energy Efficiency

In case you opt to buy a preexisting home, you may have to face several problems, such as lack of adequate insulation, inefficient and obsolete appliances, leaky window panes and chipped tiles. New home construction enables you to install the latest, energy efficient materials, such as energy saving appliances, advanced energy saving windows and high R-value insulation. These energy efficient appliances help to reduce electricity consumption and result in long-term savings.

Superior Quality Workmanship

Hiring the services of reliable and experienced home builders eliminates concerns that are otherwise associated with buying a preexisting home. Further, the superior quality of workmanship ensures that the job gets done in the best possible manner.

VA Home Loans for Home Construction: Factors to Consider

Buying a home is perfectly fine, but one drawback is that the home has been lived in before. To some people, that takes away the feeling that the new home is theirs. But a construction loan makes it possible to have the ideal home built. For American veterans, VA home loan for home construction make it possible to build their own homes.

There are some clear advantages to constructing a home from scratch compared to occupying a pre-built home. The design opportunities are the most obvious to us all, but others relate to a more manageable repayment structure and the lower interest charged.

Financing home construction is a complicated process, but by speaking to the relevant people, and finding out the specific differences in loan distribution and payments that exist, the full advantages of a VA home loan can be enjoyed.

The VA Financing Option

Finding the funds to build a new home might be more complicated than looking for funds to buy an established house. This is because a VA home loan for home construction has more facets than a typical home loan, which is used to just buy the deeds to the home. A construction projects is a live thing, with delays and changes to design plans commonly experienced.

As a different loan animal, financing home construction is accomplished with different criteria, and even after the mortgage is approved, there are strict guidelines to take into account. Some of them work in the favor of the borrower, like the loan preventing borrowers from paying the construction fee, thus keeping the cost down.

However, in contrast, a funding fee is applicable, and needs to be paid just 15 days after the home purchase deal has been closed – though it can be paid before the deal is struck too. Some VA loan borrowers are exempt from the fees, such as wheelchair-bound veterans.

Advantages of Construction Loans

Normally, the advantages of getting a mortgage from the VA are that the interest rate is lower, with a percentage of the loan itself being subsidized by the government. Another is that once the loan is used to purchase the home, the borrower has 30 days before repayments begin. But it is different for a VA home loan for home construction.

Once the mortgage is approved and spent, it will take several months for the first repayment to be made. This is because financing home construction is very different to financing the purchase of a completely, pre-constructed home. The basic rule is that repayments should not begin until after the borrower has moved into the property.

So, if it takes 6 months to build the home, the borrower has 6 months to wait before repayments are made. There is a limit to this delay, however, with 12 months the maximum period of grace on the VA home loan.

Finding the Right Contractor

The process of finding a contractor to build your new home normally involves seeking a reputable builder in your area. But when getting VA home loans for home construction, it is important that only one of the registered contractors are hired to do the job. These builders must be recognized by the Department of Veteran Affairs, so look out for the VA builder ID number.

Even in general terms, financing home construction is a major deal. Budgetary concerns mean that quotes and rates have to be studied. While the VA might detail a short list of registered construction companies, it is still necessary to identify the one that works for the lowest cost.

The Top 5 Reasons to Consider Residential Home Construction

When you’re looking at residential home construction, you have to figure out why it’s better than a pre-owned home. Regardless of where you’re thinking about moving in, there are advantages to choosing new home construction. Whether you’re focused on certain features or trying to stay under a certain price, you may be surprised by how easy it is to find a newly constructed home that fits all of your requirement.

Better neighborhood. With residential home construction, you may be able to look at some different communities that are newly constructed. Some of the new communities make better neighborhoods because they are just being established. The neighborhoods are likely going to have paved sidewalks as well as many other features. You may find tennis courts, community swimming pools, playgrounds and much more as well.

More amenities. There are going to be more amenities within the residential home construction. This includes better carpet, larger tiles, state of the art appliances, garden tubs and much more. You will be able to choose the amenities to your standards as well. This means you can select the tile you want, the appliances you want and even the colors of your counters and cabinets. With more amenities and more choices for you to make, you get the ability to customize your home in many different ways. When you buy a pre-owned home, you don’t get these advantages – you have to deal with what someone else chose for you. Think about what’s important in a new home and then locate a builder that can provide you with those amenities.

Fewer problems. There are going to be fewer problems in residential home construction. The electric has already been tested out. You have a new roof. All of the drywall has just been installed. This means that you don’t have to worry about such things as mold, mildew or other problems throughout the house. This will be more cost effective because you don’t have to fix problems. If there are problems, you’re under warranty, saving you money because you can just call up the builder to file a complaint.

New plumbing. One of the biggest problems outside of residential home construction is the plumbing. If you buy a pre-owned home, you don’t know what has gone down the drains and been flushed down the toilets. Everything may look okay but as you continue to live in the house, someone else’s problems may start to surface – literally. With new home construction, it’s all new plumbing.

Cleanliness. All of the carpet, all of the counters and all of the tubs and showers are brand new in residential home construction. This means that you have the cleanliness you want in a new home. You don’t have to worry about someone else’s stains, kids or pets left behind for you to deal with. The home will look and smell new, which is one of the many reasons to buy a new home instead of a pre-owned one.

What You Need to Know About Home Construction Price

Undoubtedly before you embark on any home construction project whether it be home remodeling for an existing house, new home construction, kitchen remodeling or room addition, you would wisely research how pricing construction and home construction rate work. Assessing and pricing construction projects are not too complicated to understand and are definitely not quantum mechanics science. As an experienced general contractor in Los Angeles I know how my clients think and what would make them happy, they basically want the best of the best in terms of quality and materials for as low as possible. Sometimes I can almost hear them think what they don’t dare ask – “do it for free “. Well unfortunately and as the old saying goes, nothing is free in life. Knowing that home construction price is the main factor in the decision making process of most people; I tend to explain how “prices construction” works and how I actually calculate estimations.

In general the factors a home contractor takes into account are: materials, labor, equipment, licenses and permits, office expenses, time and scope of work. All these elements must be considered very carefully and thoroughly before the final building cost is presented to the client. Any home construction rate may also vary according to the quality of the materials and the subcontractor’s credentials, as well as the area and state where the project is done because of differences in permits costs and charges. To avoid over-charging or under-charging the experienced home contractor also studies and reviews past projects and current costs of materials to come up with an accurate answer to the “prices construction” question, as it is often asked by my clients.

To elaborate a little on the cost of materials let us start with the fact that on any single home construction or home remodeling project, builders use more then one kind of material, whether it be just tile installation, counter top replacement, bath room remodeling or even painting a house, the materials and equipment necessary are many and the accumulative cost of all of them can be very expensive for the contractor, thus making the home construction price high in the eyes of the home owner. Many a times the contractor would need to rent heavy machinery and equipment for the job and this too can bring the home construction rate higher. The cost of specific materials can change according to the quality, the strength and brands. For instance tile varies in price tremendously, depending on the kind and brand, therefore a bathroom remodeling can change considerably from one project to anther, while wood price for framing is relatively the same. Of course it is not the place or the scope of this information to detail the prices of materials, but rather to give an idea of what is involved in pricing construction jobs.

Professional labor, as mentioned before is another significant aspect in the equation of home construction rate a general contractor will place in the estimate. Crews of trained, experienced and licensed professionals have earned their expertise with a lot of sweat and years of hard work in the field and therefore legitimately deserve a fair salary for the high-end job they deliver. When it comes to home construction and home remodeling, precision and craftsmanship is crucial and should not be under estimated by home owners because the difference between an expert and an amateur is huge.
Furthermore, cutting corners and hiring non professionals is going to cost more in the long run and needless to say that many of them are unlicensed which makes it also illegal. A good home contractor will chose a craftsman who has the know-how and over of brand named materials if he needs to keep the budget low in the pricing construction process.