Avalon Building Systems Blog

Sometimes it’s not that easy to buy a new home. Paying rent in New England and New York is equal to, or in some cases higher than, a monthly mortgage would be. But looking for a reasonably priced home, in a town where you want to put down roots sometimes can be disheartening. Often times, homes in the affordable price range means there is a lot of fixing up to do. Really it is often more than just fixing up, it’s tearing down, remodeling or adding on. Once you figure in all of that, it may be easier to buy property and build your own new home.

This may seem daunting to many. Paying rent while paying a construction loan for a year or more! Not when you build a modular home. Modular homes provide to you better quality than a stick built home, with competitive and budget friendly costs, in a fraction of the time. Additionally, you can design your new home to meet your family’s needs.  Modular homes are customizable, with no construction delays. Approximately 4-6 weeks after your home is set on its foundation, you are ready to move in.

Modular homes are built to the toughest construction codes required by the state, and are built out of the same type of building materials and name brands you would find in site-built homes. If you qualify for a home mortgage, you will almost certainly qualify for a construction loan to build a modular home. And modular homes are built in a fraction of the time. Contact Avalon Building Systems for more information on the modular building process.

In order to buy a new home, the home must be appraised so you can begin the process of getting a mortgage or loan. An appraisal of a modular home is the estimated amount a home buyer can expect to pay for their new home. When buying any piece of property, including modular homes you need a licensed professional appraiser. However, if the home is not yet built, how is it actually appraised?

The appraiser will inspect the modular home plans to have an idea of how much your new home should cost. Generally, they use information on labor rates, building costs, and depreciation and appreciation in the area where the property is being built. Also during the appraisal process, they will use sales comparisons, prices and values of compatible homes sold in the area, to determine the current modular home value.
 
Once a thorough analysis of the property has been completed, a report is created which is used to initiate the mortgage or loan process. Included in the report would be the property specifications, the replacement cost analysis and the comparative sales analysis.

The replacement cost analysis is total amount spent on the construction and the materials of the modular home, and the lot value. The comparative sales analysis, as mentioned, is the comparison of the actual property to other similar properties that have been sold in the same town or county.

These factors will determine the current total value of the property. The modular home appraisal will then be finalized so that the loan transaction can take place. The calculated total value of the modular home will help you determine future expenses such as utilities and real estate taxes.

Buying a home doesn't have to be a stressful expenditure. While it is a very big step in your life maintaining a proper budget and financial goal will help move the process along smoothly.The development of a household budget is a must activity both before you build a custom modular home as well as during your ownership of that home. By preparing a budget you can better focus on mortgage payment goals and how the new house will affect your total expenses. Maintaining a budget during the time you own the home can help to prevent potential financial disasters as well as point you in a money saving direction so you have more funds available for those things that you need or want. Some of the items and information you will need to develop your budget are:

1. All current monthly loan payments.
2. All other monthly expenses
3. Records of variable expenses from the last 12 months. This will give you an estimate of your monthly expenditures.
4. Records of annual or semi-annual expenses
5. An estimate of what your new mortgage payment will be.
6. Records of other non-fixed expenses for the last year.
7. Records or an estimate of personal expenses
8. Having a current copy of your credit report can be very helpful.

Be realistic in your budget assessment. Make provisions for possible increases in some items. Then, look for ways to get and maintain control over your budget. Once you have prepared your budget the next step is to look for the dream home of your choice and what better way than to use Avalon Building Systems to help you in your quest? Contact us today to see our floor plans and how we can help to make your home a reality.