How Much Home Can I Afford?
When people think about buying a new manufactured or modular home one of the first questions many ask is; How much home can I afford? This is a very legitimate question and our years of experience have shown that without accurate information people usually make one of two common mistakes. They either buy too much home and find that making the monthly payments can be a real challenge. Other times, people buy too little home and later find that they have very quickly outgrown the home. In this article, you will learn how to determine how much home you can afford.
Manufactured homes are often sold separately from the land on which they will be placed. When calculating how much home you can afford, you need to factor in the cost of the land or land rental.
If you purchase land to be sure to include costs to prepare it for your home: clearance and grade work, a well or septic system, electrical and water connections, driveways, porches, landscaping, and more.
If you place the home in a park, these costs may be bundled into “park packages,” which pay for improvements such as driveways and carports for lots owned by the landlord. Don’t forget to factor in likely rent increases when budgeting this option.
Charges to transport the home from the factory and install it at its final destination may be included in the price of the home. If you buy used homes sold in place, you will not incur these costs.
New mobile-home owners also shoulder long-term costs that need to be factored into your budget: insurance, utilities, taxes, maintenance, and repairs. Despite warranties, new mobile-home owners, like the owners of traditional homes can have significant out-of-pocket repair costs in the first years of ownership.
Compare the total cost of a manufactured home (not just the purchase price) to the cost of condos, houses, and apartments in your area. You will likely discover that even with some of the added costs, the cost of ownership of a manufactured or modular home is still well below that of any other housing option. Knowing all your options will also help you to negotiate the final price if you decide to buy a manufactured home.
If this is your first home, consider homeownership counseling. A mobile home is no less a commitment than a conventional home, and a counselor can help you prepare for the purchase process and the responsibilities of homeownership. Each Centennial Homes consultant has the training and experience to act as your guide in what can be a confusing process. When you visit one of our 8 model home centers, be sure to ask questions and your personal home consultant will be happy to provide you with enough information so you can be sure that you have purchased exactly the right home.
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