Mitchell Homes Fredericksburg
Do you own a piece of property sitting untouched? This is a very common scenario we encounter at Mitchell Homes. Sometimes the property is gifted from generation to generation. In other instances, it was an investment in a dream. While the purchaser may not have had the funds to immediately do something with the land, the person took a risk, thinking that the sale could open opportunities.
If you’re thinking it’s time you finally did something with your property, then it’s likely the exact right time. There are many benefits to building custom-built homes on your land. Here are five reasons to get you started.
You already spent the time to locate and identify the exact right location for your future home and started with just the purchase of the land. You know you’ll be building in an ideal spot for you and your family.
You’re no longer limited to looking for suitable homes for sale in the school district you want or on the side of town you prefer, because these are things you took into consideration many months or even years ago. Now it’s just time for the fun part! Now you get to actually select a homebuilder and start construction on your brand-new dream home.
Purchasing a home is an investment. It’s an investment in your family and in the community, and ideally, a positive financial choice as well. While there are often upfront costs associated with owning that make renting a more palatable option, this isn’t something you’ll have to worry about when you decide to construct a home with our team at Mitchell Homes.
First, you won’t need to obtain a construction loan. This is common practice with all other builders and is usually a budget item when building a custom-built home on your land, but we don’t require that you have one. This will save you thousands of dollars that would otherwise accumulate due to construction loan interest.
And that’s not where the financial benefits stop. We also don’t require a down payment and we pay your mortgage loan closing costs! Our process is much simpler. We help arrange for one of our partner lending institutions to meet with you at a convenient time and place. This partner then helps you select a mortgage program that best fits your personal circumstances.
You can rest assured knowing you’ll walk away with one of the lowest interest rates in the industry and that the home you decide to build will be a financial boon, not a financial blunder.
All these benefits add up to paying nothing until after you have moved into your new home. And it’s very likely that your mortgage will be less than your rent.
In addition to removing the financial barrier associated with the upfront fees of constructing a custom home on your land, you’ll find even more financial benefits once you move in.
Did you consider that your mortgage would likely be a set rate? Knowing what you owe each month will help you better budget for your future. You also won’t have to contend with increasing rent costs every time you renew your lease.
You can also expect lower energy costs. Opt for energy-efficient building materials and appliances, and you’ll see the savings roll in year after year. Even our most basic models are constructed according to the most current building practices, so even if you add nothing extra, your energy costs will certainly be lower than if you were to buy a pre-existing home.
Between the initial savings and your yearly savings, constructing a custom-built home on your land, especially with our team at Mitchell Homes, is by far one of the best decisions you can make for your family and for your financial future.
Have you ever heard of a home equity line of credit? This is a line of credit you can take out on your home to spend however you like. Maybe you’re looking to add on to your property, upgrade your space, or invest in your child’s education, or you have an unforeseeable expense arise. When you pay your mortgage month after month, you’re also opening up the option to re-borrow those funds.
For example, if your home is worth $200,000 and you’ve paid off $75,000, then you have up to that amount to use as you see fit. It can even be used to purchase your next home, invest in a second property, or help fund your retirement.
While renting has its advantages, if you already own property, then building a custom home on your land often outweighs the alternative.
When you build a custom home, it’s imperative you consult with your tax preparer to confirm that you qualify. However, it may open opportunities to save on your taxes as well. For example, when you build a home in North Carolina as a first-time homebuyer or as a military veteran, you’re often eligible for the NC Home Advantage Tax Credit. This allows you to save up to $2,000 on your federal taxes with a Mortgage Credit Certificate.
If you qualify for the credit, you can claim 50 percent of the interest you pay on your newly built home and enjoy this savings year after year. You also don’t have to wait until the end of the year to see the benefit. You can immediately work with your employer to alter your W-4 and start receiving up to $167 more each month.
If you’re ready to settle into a new home and are looking into starting fresh with a custom-built home on your own land, now is a great time!