The Advantages of Buying a New Home

The Advantages of Buying a New Home

For many home buyers, the choice between a resale home and a brand new home is easy: new homes offer a whole range of advantages that are simply not available in a resale property. Here are some of the reasons that have convinced others to buy new.

You know what you get. With a new home, there are no surprises when you move in. You know how the house was built and what went into it-what you can see and what is hidden behind the walls. You also know exactly how to operate and maintain your home's systems and equipment. If you have questions later, your builder will be there to give you a helpful and accurate answer.

You get what you want. Why live with other people's taste in interior decoration? Or spend the next few years redoing the previous owners' home improvements when you can get what you want from the very start. From layout to cabinets to carpeting, new home builders offer a wide selection of standard and up-grade options. You can pick and choose what suits your own lifestyle, personality and budget.

High-quality construction. The technology of home building has improved tremendously over the past few decades and new homes are built better than ever before. They are solidly constructed and well designed for today's lifestyles. They are highly energy efficient, with excellent indoor air quality. From heating systems to roofing shingles and windows, today's building products work better, last longer and often look better. The result is a brand new home that is far more comfortable and healthier, easier to maintain and more enjoyable to live in.

You know the builder. In the end, the quality of your home depends on the quality of your builder. When you buy a new home, you also buy the company's reputation in the community, its track record with past clients and its commitment to customers. That adds up to extra confidence and reassurance for you.

Well-designed communities. New developments are designed to foster a spirit of neighbourliness by carefully balancing private and public areas. Increasingly, verandahs and porches present an open and welcoming facade towards the street, while garages are located at the side or back of homes. Walkways and bikepaths meander through developments, and playgrounds and ballparks keep youngsters safely occupied. "Neo-classical" developments are now appearing that reflect villages of bygone days, with homes close to the sidewalk, white picket fencing throughout, a "commons" area-some with a bandstand or clock tower-and village stores to serve the community. These developments are attracting a lot of interest from both builders and consumers.

Warranty. Resale homes simply do not come with a comprehensive warranty. If something goes wrong, you have do deal with it, there and then, no matter what it costs. Buying a new home, on the other hand, offers peace of mind. Professional builders stand behind their work with an after-sales service program and a guaranteed third-party warranty. Your builder will explain how this warranty works so you can be sure you are getting the coverage that you want. Ask to see a copy of the warranty document, before you sign a contract.

You know what your housing costs will be. This allows you to budget properly and with confidence-great news for first-time home buyers. With today's low interest rates and competitive housing prices, home ownership need not cost any more than what you spend on rent.

When you buy new from a professional builder, you are in control. You know what you get, and you will get what you want. You also know what itjavascript:void(0) will cost, today and in the future.

Contact New Home Specialist Eric Kistner at 423-218-2008 to answer all of your home buying questions.

Cost vs. Price - What higher Interest Rates can do to your purchase power.

Cost vs. Price  - What higher Interest Rates can do to your purchase power.

A good rule of thumb is for every 1% increase of interest rate there is a 10% decrease in 

purchase power. It's surprising to most buyers. This new year is going to bring many new opportunities to find a home. If you are still possibly considering a purchase you may want

to know this very important particular bit of information.

The higher interest rates go, the less home you and your family will be able to afford, finance 

or purchase. If you were looking at property in the $500,000 range and interest rates were at 

4.23% now they will eventually steadily be going up to 5.23%, meaning that if you wanted to 

keep your mortgage payment the same you would only be able to purchase a $450,000 home. 

Even with a 1/2% change in interest rate it can effect your purchase power greatly. I 

recommend getting back into finding a house as soon as possible to get the most house 

for your dollar, before interest rates go up and property prices stay the same.

Please see this example to show your buying power depending on what interest rate you 

lock your loan in at.

As a buyer it's vital to know your market and what options you have. I'm here to guide 

you through the process. If you have any questions email me: edinburghhomes@gmail.com 

or give me a call at 423-366-0431

Should I Buy a New Home or an Old One?

Advantages of Buying a New Home versus Older One

Posted in: Home Builders, Homes for SaleTags: Easy Maintenance, green features, new homes, New vs Old, Older Homes, Safety of Newer Homes

No matter what the current economic situation is, buying a new home will always have distinct advantages over purchasing an older home. From being able to customize your floor plan and features to more updated technology and appliances, there are a number of reasons you should consider purchasing a newly built home over a pre-owned home for you and your family.

Everything is New
One of the most obvious advantages to purchasing a new home vs an older home is the fact that everything in your home will be brand new. When purchasing a pre-owned home, the carpet, fixtures, walls, appliances etc… have been used by at least one family before you. Any stains, chips or holes are yours to keep and will remain for the duration of your lease. Purchasing a new home ensures that everything will be clean and unused when you move-in.

Customization
When purchasing a new home, you are given the opportunity to customize certain aspects of your home; the level of customization varies from builder to builder. Cabinets, flooring, bonus rooms and energy efficient features are just some of the many amenities you get to pick out when building your home.

Green Features
Many new homes today are built with your comfort and the environment in mind. These homes often are constructed with green materials and are designed to include other environmentally friendly amenities as well, such as solar panels, tankless water heaters, better insulation and indoor air filtration systems. These features are both kind to the environment and to your wallet, as they save you money each month on utilities. Ussually any pre-owned home you purchase will not have these added benefit of green features.

Safety
Some older homes were built with hazardous materials, such as asbestos and lead-based paint. For families moving into an older home, these dangerous and outdated building methods can seriously threaten the health and safety of you and your family. In addition, overtime, mold may have developed in a home and can greatly affect the health of you and your family. In choosing to buy a new home, you will be moving into a house that is not only free of these hazards, but it is also up to date on all plumbing and wiring regulations, ensuring a safer environment for your family.

Easy Maintenance
Newer homes are built using durable and lasting materials, which translate into to less upkeep and maintenance. In an older home, you may have to deal with worn out appliances, run-down materials, wiring and plumbing that may be in constant need of repair, or any number of other issues. As a new home owner, you’ll run into fewer issues and if you do, you can call your home builder’s customer service team for quick resolution. In most cases, you are protected by a builder warranty and manufacturer warranties on materials and products.

re-posted with Permission

Relocate or Remodel

Relocate or Remodel

Posted by Allison Gillett under For Buyers, General Information

We all realize that it is not the ideal time to try and list your home, but if you are buying in the same area, then your lowered house price will also be reflected when you buy your replacement house. Nothing is lost therefore - or is it?

Sometimes we can become aware of the fact that we really must move. Maybe the children are too big and we really need to move for that extra bedroom; perhaps there is a need for a bigger family room, or an extra bathroom.

Many circumstances make house-moving come to mind, but have you worked out the cost of re-modeling as opposed to the cost of moving? When we think about moving, we often think of all the irksome things about our home, but we do not remember all the conveniences that might not be available in the next home.

What about the qualities you really like about this home? Even small things like the sun shining into your kitchen in the morning are priceless to some people.

One of the first things to consider is your ‘gut feeling’. Do you want to move because you want to get away from something that is bugging you in that house? If so, think about including that in a re-modeling project (as long as it is not an irritating neighbor!)

Write down all the things that are missing in the house you are in, that you know you can afford to buy in the next house. For instance, a third bedroom is one reason you must move, and you would like a big yard. But have you checked the prices of three-bed roomed homes with a big yard in your area?

Cost is really the biggest factor that we all have to take into account. Obviously the comparative costs of moving versus re-modeling may play a part.

It is easy enough to calculate the cost of re-modeling, you simply ask a builder for a quote. (Get several bids) If you are doing it yourself, then it will take longer to calculate everything you need to buy. Some hardware stores offer a quotation service. There are on line services for instance on the Home and Garden Web site, where you can pick out your kitchen or bathroom type, choose cabinets and colors of your choice, one click and it all whizzes into place!

So the cost of remodeling seems straightforward, but what of the fact that by remodeling, you are also increasing the value of your house. Will you therefore deduct some of the value from your ‘cost’ of re-modeling? Statistics say that 80% of the renovating costs for a new kitchen or bathroom are re-couped in the sale price of the house.

There are also short cuts you can take to get your dream kitchen, like just ordering new cabinet doors and drawers instead of refitting the whole kitchen. These replacement doors come in various price ranges starting from inexpensive white laminate up to classy dark cherry wood.

The cost of moving is harder to calculate, as it contains many hidden costs. For instance all the small costs like a day off work to move, the cost of moving boxes, the paint costs to touch up the outside of the house and those extra shrubs you will buy to make the yard look good.

The larger expenses are easier to spot, for instance: the fee to the realtor, the difference between the cost price of selling your home and buying the new home, the closing fees and legal fees for both houses.

Then there is the actual cost of the physical move, will it be by a removal company or do you plan to do it yourself? Once in the new home, what of drapes and any extras that will be required.

Once all the figures are in, and you have done the math, you may find it easier to make a logical decision and you also feel better in knowing all the cost factors involved - so there will be no surprises.

What Borrowers Should Know about FHA Loans

What Borrowers Should Know about FHA Loans

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county, though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the Section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general challenges with today’s lenders extending credit with respect to conventional loans, many borrowers may find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

Both Edinburgh and Edinburgh both fully qualify under FHA guidelines. Call Eric Kistner with Keller Williams/The Edinburgh Group to learn about all of your financing options. 423-218-2008 edinburghhomes@gmail.com