Right now there are more than a million housing units up for sale. While the market has its ups and downs, this is the sign of a healthy housing market. With this in mind, single-family homes are some of the most popular options that you can look into. Here are a few things that you should know about buying one of these homes in a way that fits you financially and improves your personal life.
Consider the land and the merit of buying a single-family home
You need to consider both the house you're thinking of purchasing and the land it sits on. Square footage and acreage are a package deal, so try your best to get a nice mixture of both. The land is one of the biggest benefits that single-family homes have over condos and other attached properties. When you purchase a single-family home, you're getting the benefit of lots of space, privacy from neighbors, and the ability to customize your home however you'd like. You aren't beholden to homeowners association (HOA) rules and limitations that can limit your options and creativity.
Keep in mind that buying a single-family home also allows you to hold a valuable asset in your portfolio. About 16 million of the properties on the rental market are single-family homes. When you have a quality home in a good neighborhood, you can always rent it out or flip it for a profit.
Think about whether you're going to build your house or buy it pre-owned
New homeowners generally have two options when buying a single-family home: building it or buying it pre-owned. When you build your own house, you can craft it to your specifications and get every last detail you've ever wanted. Building your own single-family home might cost you between about $280,000 and $560,000 in most cases.
You can often find a cheaper deal on a pre-owned house but might have to do some modifications to get everything that you want.
Find a mortgage and negotiate everything during the closing
The last piece of the puzzle is to get whatever sort of financing that you need. Some of the funding options you might look into include jumbo mortgages, home equity lines of credit, fixed mortgages, adjustable-rate mortgages, and conventional mortgages. Doing this requires you to get your credit in order and make sure that you have enough income to afford it.
Let these tips help you as you buy a single-family home.