I finally have my mortgage scores up to where I'm comfortable (680 mid score) and I'm now working on saving up cash for a down payment. We are currently in a very small rental and are wanting to move as quickly as possible. I need to wait until Feb/March to close as I'm self employed and need to count my 2016 income into my 2 year average to be able to qualify for the loan amount needed to get us into a house that we are happy with. I have 2 options... 1. Wait until the beginning of the year and get pre approval and start the house hunting process then or 2. Meet with a local builder in the fall and go under contract for a new construction home (to be built). Either way we would prefer new construction whether it's having one built or picking from what's available when we are ready to buy. The local builder we would use if we went with option #2 finances the construction himself if it's a neighborhood they are already building in so I wouldn't need a construction loan.
Are there any advantages/disadvantages between the 2 options? We are in a very hot market where homes sell very quickly. Part of me is concerned that there will not be anything we really love the beginning of next year (considering there is already low inventory and I'm sure historically the winter months= less homes on the market) but on the other hand I'm clueless on the home building process and don't know what to expect if we went with option 2.
