A brand new home might mean a lower monthly payment!

New Construction Might Be More Affordable Than You Think

If you’ve been looking at homes in the Pensacola area and assuming new construction is out of your price range, it’s worth taking another look.

Right now, some builders are offering incentives that can make a brand-new home surprisingly competitive with an existing home — especially when it comes to your monthly payment.

One of the biggest incentives we’re seeing is lower mortgage rates through the builder’s preferred lender. Some builders are offering lower-than-market rates, plus other great incentives like closing cost assistance.

And this is where things get interesting.

Let’s say you find two homes that are relatively close in price. One is an older resale home, and the other is brand new. If the new construction builder is offering a lower interest rate, your monthly payment could potentially be lower on the new home, even if the purchase price isn’t.

That doesn’t mean every new construction home is the better financial choice. Builder incentives can come with specific requirements, such as using the builder’s preferred lender, purchasing a particular home, or closing by a certain date. Incentives can also change quickly.

That’s why I don’t recommend looking at the purchase price alone.

When you’re comparing homes, we should look at the complete monthly payment, interest rate, closing costs, HOA fees, insurance, taxes and any available incentives to see what actually makes sense for your situation. But another bonus for a new home, is the home owner’s insurance is going to be comparatively affordable versus an older home.

And don’t assume you have to choose between a resale home and new construction before we look at both.

There are new construction communities throughout the Pensacola, Pace, Milton, Gulf Breeze, Navarre, Cantonment and surrounding areas, and the incentives available can vary quite a bit from one builder or community to another.

If you’ve been waiting to buy because the monthly payment hasn’t felt comfortable, let’s take another look. You may be surprised by what new construction incentives can do for your buying power.

Builder incentives and financing programs are subject to change and eligibility requirements. Always compare the complete loan terms and costs before making a decision.