Building a Home? You’re in the Minority

Strawberry Schoolhouse
Creative Commons License photo credit: kevindooley

Home builders are really having a difficult time of things right now. They don’t have too many clients, because there have been so many people who have lost their jobs, been reduced to lower-paying work, or are simply just hanging on to their money. The majority of people who find homes today are purchasing homes that have already been built and are being sold by their previous owners. They may not get exactly what they want by doing things this way, but they’re still able to get into a home that they like and that they can be comfortable in for many years. They may still build a home, but it will be after the economy recovers and the housing market is better.

If you’re building a home right now you’re not alone, but you’re definitely in the minority of people who are getting into new homes. The interest rates are great, but having the money for a down payment and being able to obtain financing are a couple of areas where a lot of people are lacking at the moment. The economy is causing financial problems, and people who struggle with their finances often find that their credit scores go down. Because they have damaged credit, they can’t get the loan they want to build their home. They can often get a smaller, less expensive loan, though, and that’s what they use to buy their home.

People who really want to build a home may be better off waiting a while, while they repair their credit and save up more money for a good down payment. Having a lower mortgage payment can also help them make sure that they aren’t getting themselves into a financial bind that could cause them more problems in the future. That’s easily avoidable if you proceed with caution.