Building a new home can be an exciting but stressful process. One of the biggest factors that can cause stress for new homebuyers is the timeline for construction. Over the past few years, builders have faced challenges in getting construction materials and dealing with labor shortages for qualified trades. This pushed construction timelines out, making it a longer overall process for homebuyers wanting to build a new home. The good news is that new home construction timelines are improving, and this has had a significant impact on the home-buying experience. Here are some of the ways that faster construction timelines are making it easier for people to build their dream homes.Reduced StressOne of the most significant benefits of faster construction timelines is the reduced stress it has on homebuyers. Long construction timelines can lead to anxiety and uncertainty for homebuyers who are eager to move into their new homes. Faster timelines mean the wait time is significantly reduced, and homebuyers can enjoy their new homes sooner.Faster Move-In TimeWhen your home is built faster, you can move in sooner. This means that you can start enjoying your new home and getting settled into your new community sooner. It can also help you avoid having to pay for temporary housing or storage, which can be expensive.Increased AvailabilityFinally, faster construction timelines mean that more homes are available for purchase. With shorter construction times, contractors can complete more projects, increasing the availability of new homes for sale. This can make it easier for homebuyers to find a home that meets their needs and budget.With improvements in technology and building methods, it is clear that the future of home construction is bright, and homebuyers can look forward to building their dream homes more quickly and easily than ever before.

From fixed rates and closing costs to rate locks and down payments, there is a lot of jargon regarding mortgages. First-time homebuyers need not fret! We’ve got the 411 for you. Below is a list of terms curated specifically for those looking to understand more about mortgages. Wait… what is a mortgage? Before diving in, let’s ensure we’re in the right spot. As defined by the Consumer Financial Protection Bureau, a mortgage is an agreement between you and a lender that allows you to borrow money to purchase or refinance a home and gives the lender the right to take your property if you fail to repay the money you've borrowed. Adjustable-Rate Mortgage (ARMs)This is a loan with an interest rate that changes. ARMs are typically 30-year loans, meaning you’ll repay the borrowed money over 30 years. To avoid crazy rate hikes, ARM loans come with “rate caps,” which limit the amount your interest rate can rise or drop in a single period and over the loan's lifetime.There are many factors to consider when determining whether to obtain an ARM loan. From how much you want to spend up-front and the current state of the interest rate market to whether you’re getting close to retirement or if this is just a starter home. Amortization This is a fancy way of saying, “paying off a debt over time in equal installments.” Part of each payment goes toward the loan principal (see definition below), and part goes toward interest. With mortgage loan amortization, the amount going toward principal starts out small and gradually grows larger each month.Closing CostsClosing costs include the multitude of fees for the services and expenses required to obtain and finalize a mortgage. Those costs may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges. A buyer's average closing costs run between 2% and 5% of the loan amount. Down PaymentA down payment on a house is a large sum of money the buyer pays upfront. The amount paid is usually a percentage of the purchase price and can range from as little as 3% to as much as 20% for a property. The required down payment is usually determined by the type of mortgage you choose, your financial situation, and the type of property you’re buying. In terms of your mortgage, a larger down payment will typically mean smaller monthly mortgage payments. EscrowAn escrow is a legal arrangement in which a third-party temporarily holds money or property until a particular condition has been met (such as fulfilling a purchase agreement). In terms of real estate, escrow can protect both the buyer and the seller throughout the home buying process. Throughout the mortgage term, an escrow account will hold funds for taxes and homeowner’s insurance.Fixed-Rate MortgageA fixed-rate mortgage is an alternative to an adjustable-rate mortgage. As the name implies, a fixed rate is a home loan option with a specific interest rate for the entire term of the loan. Essentially, the interest rate on the mortgage will not change over the loan's lifetime, and the borrower's interest and principal payments will remain the same each month. With this type of mortgage, fluctuations in the market will not impact the rate.InterestMortgage interest is the interest charged on loan used to purchase a piece of property. The amount of interest owed is calculated as a percentage of the total amount of the mortgage issued by the lender. Mortgage interest compounds and may be either fixed or variable.Loan PrincipalThis is the amount you borrow and goes down as you begin to pay it back, while interest is the cost of borrowing the money.th.Rate LockA lock-in or rate lock on a mortgage loan means that your interest rate won’t change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application. The downside to a rate lock may be that it’s expensive to extend if a transaction needs more time.A rate lock may also lock you out of a lower interest rate if rates fall after you get your loan offer. When it comes to buying a home, the terminology can leave you spinning. We hope this guide has served as a solid starting point in your homebuying journey.