How to Purchase a Modular Home

Modular homes get their name from the fact that sections of the home are built in a factory. They are then brought to the build site and pieced together with the rest of the home.

This article will highlight the stages in the purchasing and building process of modular homes.

Purchase Land

The first step to build a modular home is to purchase a piece of land for the home to be built on. You should consider what size home you intend to build, and that decision will factor into the amount of land you need to purchase. You should also think ahead to the future, and if you will need additional rooms for children one day, or perhaps an in-law suite. You will want to ensure sufficient space now to meet your needs down the road.

Research and Select a Builder

You next want to research and select a modular home builder. You will need to figure out what style of home you would like to build, and then contact builders who specialize in those styles of home building. It’s a good idea to tour the model homes of the builder to get a good idea of what your home may look like once completed. You’ll want to get several pricing quotes to ensure that whoever you choose is within your budget.

Budget Impacts

There are several things that you will have to factor in when setting a budget. Setting up utilities to come to your build site, such as gas and sewer lines and electricity, may cost substantially more money. If you are able to select high-end materials to be used for your home or upgrades within the home, such as granite or marble countertops, a larger basement or garage, crown molding, more lighting or energy-saving upgrades, these will add to the total cost of building your home, and should be factored into the budget from the beginning.

Obtain Financing

Obtaining financing is different then with a normal mortgage loan because you may have to obtain a construction loan first to pay for the purchase of the land, and to pay the builder. A construction loan will give you the funds to pay for the land and the builder if you can’t pay for them out of pocket. You are able to switch this loan over to a traditional home mortgage after the home has been built.

Benefits of a Modular Home

There are several benefits to owning a modular home. Since several modules of your house are being built in a factory, delays are fairly uncommon, according to the Max Real Estate Exposure website. Also, modular homes tend to be of higher quality since those areas that are built in a factory are held to high factory standards. The builder may offer financing options, which can result in an easier loan process. There are more options for upgrades within the home, and you may have greater control over the areas that you wish to customize or upgrade. They also tend to be more eco-friendly and energy-efficient because of their air-tight construction, according to the Fresh Home website.