This is a great question, but the things besides finding the perfect
home that would drive me to falling in love with a new home are the
practical - warranty and financing.
I know how tight my budgets
are these days, and right now I don't know where I'm going to find the
money to tune up my 1950's air conditioner. Living in an older home
means that I am constantly fixing something and I have to add that into
my budget. It's just Murphy's Law - if something can go wrong it will.
Every
builder I know of includes at least a one year warranty and some offer
even more- many times this might even be dictated by the state you live
in. You can purchase a warranty on a previously owned home, but I have
had horrible experiences with these - they charge you at least $50.00
every time you call, then come up with an excuse why your issue isn't
covered. A new home has all new appliances, roofs, flooring, plumbing,
etc in it and besides what the builder warranties, the manufacturer
often times will over their own warranties. The key is to put all of
this information in one place after you are happily in your new
residence.
As far as financing, builders spend a lot of time and
effort doing the research to find the best lenders that become a part of
their team - that way the lender understands what the builder is doing
and the builder has almost been "pre-qualified" as someone who builds a
home that the lender wants to lend on. It is always an option to come to
the table with your own financing, and if you do then you will have at
least two options to look at.
When I went to the Holiday Builders Open House in Royce City I had the opportunity to meet Kent Winkelseth who is the production manager for Shelter Mortgage
in Texas and Florida. Holiday mostly builds an entry level priced home,
and Shelter had obviously done a lot of research to be able to offer
the best loan choices to Holiday's buyers. He got my interest when he
told me about a Single Family Housing Guaranteed Loan program. It's a
Texas program that offers 100% financing with no down payment in
specific areas, most of which Holiday is building in. Being able to come
up with a down payment is the hardest part of home ownership for most
first time buyers, so something like this can make the difference
between renting and buying. With Shelter offering dedicated loan agents
that know what Holiday Builders offers, you can be in your new home
before your next family holiday!
Foreclosures and repossessions
may look like a great value on paper, but think about if that was your
home that you couldn't afford any longer and had to give up. I'm sure
maintenance on it hadn't been a priority for a long time so the new
owner will be inheriting all of the issues you wouldn't have had the
money to take care of. My own home wasn't a foreclosure but had been
neglected for quite awhile. I bought is as-is and it was - including a
4- x 6' hole in the second floor that the previous owners had done a
great job of hiding! After you buy a foreclosed home you are on your own
- there won't be a builder, sales person or team to be there when
issues arise.
But if you are a gambler, there are great values out
there. Just be sure that you realize the risks before you buy a home
that might end up costing you much more than you expected and isn't such
a great deal after all.
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