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Buying a Home vs. Building a Home


Shopping for your dream home can be an exciting process – but sometimes, your dream home is one that you build from the ground up. Deciding whether to build or buy can be tough, as there are advantages and challenges to both options. It’s important to outline what you want out of a house (and your homebuying journey), then consider the factors of both buying and building to determine which might be a better fit for you. 

Buying a House 

One of the biggest advantages of buying a house? It’s already standing, so you’ll often be able to move in faster than you would when building. The process can be quicker (and sometimes simpler), especially if your area has good options in its inventory.  While you won’t be able to customize the home in the way you would if you were building it, you’ll be able to upgrade amenities or renovate the home to your liking as your budget allows. 

The main differentiator is that you will typically buy the house as it is, meaning that you’ll have to make any changes or renovations yourself. This can mean extra expenses, as certain repairs can be costly and time-consuming. You can also take out additional loans, like home improvement loans, home equity loans, or personal loans, to finance any future renovations. 

If you decide that you want to buy a house, you have several options when it comes to how you finance it. Arkansas Federal Credit Union offers conventional loans, FHA loans, USDA loans and more – which means that we can help you find the perfect loan for what you need. 

Building a House 

Arguably the biggest advantage of building a home is the ability to completely customize the home to reflect your personal style and preferences. You’ll have total control over every little detail, from the floor plan to the fixtures. New homes are also often more energy-efficient and require fewer repairs, as they are equipped with newer appliances. 

On the flip side, being able to customize your home requires a much more involved process than moving into an existing one. You’ll have to find a lot or land to build on, find a builder, and make decisions regarding every aspect of the building process. Building a home is a big commitment, and the process can require a lot of patience and dedication. 

If you choose to build, a two-time close construction loan from Arkansas Federal can help you dream up the perfect place to call home for years to come. You’ll close once to finance the construction portion of the project, and again once construction is complete. 

Whether you choose to build or buy, the process can be just as exciting. No matter which direction you choose on your journey to homeownership, our trusted team of lenders can walk you through the process and find the loan that works for you.

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