This question depends on who you ask. If you ask a real estate agent you will more then likely have them try to sell you a house as the commission is larger on a house then a piece of dirt (lot) to build on. If you ask a mortgage loan officer they are going to try to steer you toward buying a home instead of building because the loan process for a construction loan is a nightmare.

Since I am real estate agent and President of my own mortgage company I will answer the question for you from my experience.

To be honest with you building is kind of a pain, unless you have a great builder and bank. Right now banking and mortgage lending is NOT smooth sailing. It was a pain getting a construction loan when anyone with a pulse could qualify in 2004-2006.  So getting a construction loan now is even more of a nightmare. As a mortgage loan professional I wouldn’t suggest building just for that reason alone.  You have to put down a lot more money then you would have to for just a traditional purchase.

If you still want to build just be prepared for a rough few months. Depending on the size of home, the finishes, the town you are building, among others, the process can be from 4 months to 2 years. There are many meetings involved, decisions to be made, and things to consider, and with a lot of people. IF you really do your homework and find a great reputable, experienced builder then you can make your process a little easier. In any event building a home is not an enjoyable experience, and in fact many people in the industry joke about having a great marriage, because the process can all but end one from the stress.

In closing my suggestion is to buy and NOT build. If you want a like new home then I suggest finding home that needs a lot of work and should just be renovated and then buy that and gut it. Then you can make changes, additions, and improvements that will suit you. Sometimes when doing a renovation it too can be a difficult process for getting money from a bank, and you still have to go through a lot of the same thing required for new construction. You just avoid a lot of the city permitting problems when doing a renovation. Or find a like new home.