• Should I purchase a home or continue renting?
• What are the tax advantages of owning a home?
• Why should I purchase a new home versus an existing home?
• How long does it take to build a home?
• Can I make changes to your plans?
• Can you build my floor plan?
• Will you build on a lot or land I own?
• What if I don’t have perfect credit?
• How much do I need for a down payment and closing costs?
• What is Title Insurance?

Should I purchase a home or continue renting?

Owning a home does outweigh renting. Rent is just that, rent. You pay someone else for the right to live in a space with no potential of owning. Homeownership allows you to own an asset, realize appreciation, provides tax advantages, the ability to personalize, privacy, and much more. It is an incredible feeling to own a home of your own.

What are the tax advantages of owning a home?

One of the best purchases you can make in a lifetime is a home. Homeownership provides several tax advantages to make it worth while besides the fact that you own an asset. A couple of the tax incentives are the mortgage interest deduction and property tax deduction. The amount you are able to deduct on your taxes will depend upon your tax bracket. Please consult your accountant for details. The tax code changes on a regular basis so it is best to confirm all of the possible deductions with a tax professional.

Why should I purchase a new home versus an existing home?

Once you have made the decision to purchase a home you have two options, either buy a new home or a previously owned home. You are the only person that can decide which is the best option for you and your family. You will need to determine if you want to spend the time, energy and cost to renovate a previously owned home to suit your needs. Some of the advantages of purchasing a new home are:

1. Appreciation – new homes tend to appreciate faster than previously owned home in the first few years after the home was constructed.
2. Reputation of the builder – with a new home you will at least know the builder, the age of the home, the features, options and materials used. If you purchase a previously owned home you might not know who constructed the home, when it was built, the materials used or the quality of construction.
3. Personalization – you are able to select the design that best suits your needs, make changes to fit your lifestyle and make selections that best reflect your personality. You are able to select the style and color of things such as cabinets, countertops and flooring instead of working with choices made by someone else or remodeling a previously owned home to meet your needs.
4. Low Maintenance – newly constructed homes require little to no maintenance because it is new. You do not have to worry about repairing or replacing the roof, furnace, water heater or appliances. The exterior is also low maintenance when vinyl siding or brick is used in place of wood and minimal painting is required on the exterior doors and trim.
5. Construction Efficiency, Quality and Safety – construction technology and techniques used today are much different than those used ten or more years ago. Homes are being built better than ever and construction materials are more efficient, safer, durable and visually appealing than years past. Construction codes are continually changing and new construction must keep up with the changes. Previously owned homes were not constructed with the same materials and built to the same codes as homes built today.
6. Warranty – each new home purchased from Watts Construction Company comes with a warranty. A copy of the warranty is located under the current homeowner section of this website. You will not receive a warranty on a previously owned home unless one is purchased by you or the seller.

How long does it take to build a home?

The amount of time it takes to complete a home once the building permit is received will depend upon the size and complexity of the home. The process can take anywhere from 3 to 8 months. The time of year and weather also contribute in determining the length of the building cycle.

Can I make changes to your plans?

You are able to make changes to the floor plans. The extent to which changes can be made will depend upon the neighborhood, floor plan, budget and time frame for construction. Watts Construction Company has our own in-house design staff to accommodate changes. We also custom design homes and commercial/industrial buildings. Typically after the rough mechanical stage is complete it is difficult and costly for you to make changes. This is why it is very important to determine your wants, needs, desires and budget during the planning stages.

Can you build my floor plan?

Yes we can. If an architect has designed the plan for you, you paid for the services, and own the rights to the plan we can build your floor plan. If you found a floor plan in a design book you will need to purchase the drawings and rights to build that floor plan from the architect or design company that created it. Most plans are copyrighted by the designer/architect and that is why you need permission. Not every design works on every lot, property or neighborhood so if we are to build a home using your floor plans you will need to consult with our team to determine if your floor plan will work.

Will you build on a lot or land I own?

We are willing and able to build on land or a lot you currently own or are considering purchasing. Our design team will need to physically view and walk your property to determine if it is feasible to build a home and if so what type of home can be built. Several things to consider are the water table, is all the land usable, neighborhood and city/township restrictions and setbacks, the size of the property, is the property flat or rolling, is water nearby that would require special permits/approvals and are there trees or other structures on the property that may need to be removed in order to determine where the home will be placed on the site.

What if I don’t have perfect credit?

You do not need perfect credit to purchase a home. Good credit does help with the process and the ability to get the best loan available. However, many loans have been created to help people with less than perfect credit qualify for a loan. Talk with a mortgage loan officer to discuss your credit score, what type of loans you qualify to receive and if it is economically feasible to purchase at this time. If your credit is too low and you do not qualify for any loan, the loan officer can give you tips on improving your credit score and reducing existing debt.

How much do I need for a down payment and closing costs?

This amount will depend on the type of mortgage. Some loans require 3%, 5%, 10% or 20% for the down payment. Closing costs will also depend upon the type of loan and if you are able to finance the closing costs. This information should be discussed with a mortgage loan officer. He/she will be able to discuss the different loan options available to you as well as provide you with a good faith estimate.

What is Title Insurance?

Title Insurance is the modern method of real estate title protection. A policy of title insurance protects the insured against a partial or total loss arising out of defects, liens and encumbrances in the title to real estate.

Under our American system, any interest in land must be recorded in the public records if the holder of that interest wants to be protected. Once it has been so recorded, all subsequent parties are presumed to know of its existence, since it is on the public record for all to see.

Therefore, the public records must be thoroughly searched in order to determine the ownership of any piece of land at any given time, and in order to know whether there are any mortgages, liens or other encumbrances outstanding against it.

An Owner’s Policy protects the interest of the owner of real estate and lists the name of the new buyer as the insured party. As the new buyer, you will want assurance from the seller that the title is marketable and free from liens that could create problems in the event you should decide to sell or refinance the property in the future. The Owner’s Policy does assure that the title is marketable and provides for defense of the title at the expense of the insurance company, if it is challenged or questioned by others. Typically, the seller incurs the cost of this policy.

A Mortgage Policy protects the interest of the mortgage lender and lists the lender as the insured party. All lenders require the borrower to provide proof and assurance that the loan being applied for will be in the correct lien position. If the validity of the lien of the mortgage is challenged or questioned, the policy provides for defense of the mortgage interest. Typically, the buyer incurs the cost of this policy.

The information regarding Title Insurance is provided by First American Title Insurance Company.

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