If you’ve been planning the construction of a custom home this year, it’s likely that the COVID-19 pandemic has had at least some type of impact on the timing, as well as the availability of necessary materials, and the interest rates on home mortgages and construction loans.
Even though the housing market in Florida – as well as across the United States – has stabilized, there may still be some concerns with regard to new home builds, primarily in terms of the uncertainty.
Yet, while the Coronavirus has certainly caused some anxiety – for both home builders and home buyers – if you know what you can anticipate, it may help to make the process go a whole lot smoother.
So, what are some of the things you can do to calm your nerves?
Here are some of the key tips:
- Expect delays. If you’re moving forward with the building of your new home, experts advise that you exercise patience. For instance, there may be longer wait times in several different areas – including both the construction and the financing aspect. Knowing ahead of time that a longer timeline is likely can also allow you to better prepare for the sale of your current residence (if applicable), and to coordinate the purchase of any items for the new home such as furniture and appliances.
- Financing may require some hurdles. According to National Mortgage News, financing for custom home construction – which dried up somewhat early in the COVID-19 pandemic – is dependent in large part on the success of reopening of the economy. And even though builder loan applications are now back on the rise, there are still some lenders and investors who have suspended their lending programs altogether. With that in mind, shopping for a home and construction loan may take a bit more time and effort than originally anticipated.
If you’re considering the construction of a custom home in the Orlando or surrounding Central Florida area, it can help to set up a meeting (either in-person or virtual) with an expert in the field who can answer any of your questions regarding options, timeframe, and cost.