Five Things To Consider Before Buying Your Family A Home

The housing market is hot right now and there are more buyers than there are homes to purchase. The

housing market is booming right now because of the low mortgage rates and a recovering economy. It is reported that 8.3 million to 9.2 million first-time homebuyers will hit the market by 2022. Even though this is a hot market, it might not be the best time for your family to commit to owning a home. Below are several things to consider before diving into the responsibility of homeownership.

1. Pre-approval is a must.

Getting a pre-approval will not only relay the message that you are a serious buyer but will also give you an idea of how much you can spend on a home. When you are pre-approved a seller knows you are a serious contender and puts you above offers with no pre-approval.

"There are two main things a seller wants to know about buyers: Are they willing to pay my price and can they close a deal if we agree?" says Dale Taylor, a realtor in Chicago.

A good place to start is by using an online home-affordability calculator to see how much money you should be able to borrow. Once you have established this, check out several mortgage lenders in your area. It is a great idea to shop around for the best rates and mortgage offers. You not only want the best bang for your buck but you also want to choose a lender who is happy to help answer questions, trustworthy and easy to reach.

2. Do not let emotions make the decision.

You might take a tour of a listing and say it is love at first sight but that doesn't mean you need to jump right in. Look at all the features of the home from a practical point of view. A home on a hill might have awesome curb appeal but might not be the best choice for families with you kids who like to roller-skate or ride their bikes.

According to Trulia.com half of all homeowners find at least one or not more things they do not like about their current home. There might be a cute three-bedroom bungalow that you love, but it might not have any closet space or back up to a busy street. Remember, always think long-term when investing in a home.

3. A home costs more than just the mortgage.

There are many more expenses than just your monthly mortgage payment. There will be real-estate taxes and homeowner's insurance on top of your principal and interest payment. Tax Foundation states that depending on the area you live in, your property taxes will average about 1.1% of your home's value per year. If you need $250,000 worth of insurance coverage, that will be about $1,477. You will also need to add your utilities to the monthly cost.

There are also some upfront fees you will also have to consider. You will need to set aside around 2% to 5% of the purchase price for your closing costs. A local Realtor can help you through this process.

4. There is a big difference between an appraisal and an inspection.

Banks will need an official appraisal and you will need to hire a licensed appraiser. An appraiser will give the bank a firm value of the home. An inspection will let you know if this home is a reliable purchase.

A lot of times buyers will make their contract contingent on the home inspection. A home inspector has certain criteria the home must meet to be deemed satisfactory. It is always a good idea to have a professional inspector inspect the home you are about to purchase. An inspector can make sure everything is up to code before you go through with the contract.

5. Read the whole contract.

Purchasing a home is a long-term investment and one of the biggest milestones in your life. You need to make sure everything in your contract is in order. You might look at a home love it, put it under contract, close and discover they took the refrigerator. You have to make sure everything is listed in the contract. If you do not understand any wording, ask your Realtor to explain the meaning. Make sure you are comfortable with what you sign.

If you decide to go through with purchasing a home, go through a local sales agent. A Realtor can help you find the perfect floorplan that will fit your family, in a neighborhood you are comfortable in, and in the right school district.

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Builder Tips When You Build a New or Custom Home

As a builder, we offer an in-depth building process from design and layout to the final punchlist.  We try to put ourselves in the shoes of our home buyers to make sure we anticipate the questions and needs you will have during the home building process, especially if this is your first new home build or custom home build.  However, we also want to give you as much industry advice as possible to make sure that you feel comfortable with working with us as a builder. Below are some tips to following when working with a builder.

Use a Realtor Who Represents Your Interests
While we, as a builder, don’t use an on-site sales representative, some builders and developments do.  Make sure that you find a Realtor who is used to working with new home sales and knows the ins and

outs of information that you, as a home buyer, will need to know during the building process.  That way, if your builder does not explain something to you in full or there is missing information, your buyer’s representative will know the questions to ask and information to get.

Research Your Builder
One way to know if you are using an excellent, quality builder is to view their work, while it is under construction. As we constantly have new or custom homes under construction, we can take you on a tour of our homes to show you the craftsmanship and quality construction in person and answer any questions you may have. Another way to vette your builder is to read any testimonials or reviews. We have multiple testimonials on our website as well as reviews on social media of our satisfied customers. Finally, we have an extensive list of Completed Projects on our website which show in-depth pictures of the finished homes and remodels we have done.  You can get a a good idea of the features and fixtures that we offer in all of the new homes and custom homes that we build.

Know Your Specs
When you view a completed home or model home of a builder, there may be upgraded features or thoughtful extras which may or may not be included in the floorplan that you select or design.  As a

builder, we try to be as thorough as possible to cover every detail in your new or custom home, so that you know exactly what types of features, fixtures, and trim that your home will have once it is built.  However, if you want to go room-by-room asking about the features of each room to ensure that you understand all of the specific details that will be built in your home, we have no problem with that either.

Written Agreement
Once you are comfortable with everything that will be included in your home, make sure that everything we put in our agreement with you is to your complete satisfaction.  We pride ourselves on finishing our projects on time and on budget, barring any unforseeable weather events. Therefore, our agreements have specific budgetary and timeline parameters that are defined specifically in our contracts.  Make sure that if you are working with another builder that they offer you the same.

Building a new home is more complicated than shopping for a previously-owned home. However the flexibility of having choice of selection of flooring, cabinets, countertops, paint colors, fixtures, appliances, and so much more can make the building process a very rewarding experience.  So, whether you use us as a builder or someone else, we hope that you find these tips useful.

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