The U.S. Census Bureau along with the U.S. Department of Housing and Urban Development released the numbers for home construction for the year 2016. According to the figures, there were 1,123,000 houses built in 2016 with a 2% rise over the previous year.
The slight mortgage rate decrease has given borrowers new hope. Total mortgage rate applications have slightly increase-2.3%-over the last few months, but is a 23% decrease since last year overall.
Regardless of what the interest rate is, many first time home buyers look to buy a new construction, or a fairly new home. The pitfalls start right away if as a first time home buyer you do not due your due diligence. From interest rates that the bank gives you that do not benefit you, to shoddy construction that will jeopardize your financial situation before you can move into your new home, the hazardous road to owning a home are many.
There are many construction companies that are honest, and try to do great work. But, there are hundred others that because they are trying to make a profit at your expense, do not care about the construction of their homes. Contractors pass the buck when something goes wrong with the home. The dry wall contractor blames the main contractor, and so on until owning a new home starts to feel like a nightmare.
When buyers of new construction homes are ready to move in, they find that the home was not what was promised. Drywall cracks, damp basements, roof problems, and squeaky floors are some of the most complained aspects of new home construction.
Damp basements in a new construction really spells trouble for you. The roof and basement are big ticket items to fix, so if your new home have issues with them, you have to talk to the builder right away, and have the matter settled. Look to the warranties, and to the contract you signed. If the builder is not responsive, seek legal advice.
If you are buying a new home and need to do some due diligence, this is a nice article for you to start learning what to look for when buying a new construction.