Is it better to buy a new build or an existing home? I think before answering this question you should consider a few things. What are the reasons you want to buy a new home? Is it located in the area you want? Is it close to schools, grocery stores, shops, parks, etc? I think too many buyers get “allured” by new builds and forget to ask these questions.
A new build can offer some enticing incentives, such as no closing costs. Don’t let them fool you; you may think because you are not paying anything out of your pocket for closing cost then you’re getting a good deal. When in reality just like the saying goes “too good to be true”, well, it is! You have to know those fees are being paid somehow, most likely they are in your interest rate. Most builders push you to work with their “preferred lenders” and by doing this they will give you an incentive for doing this. You should definitely do your homework and meet with your lender and if you don’t have one, ask around and interview a couple then decide which one is best for you. Let them know what the “preferred” lender is offering. Ask them if they can help and ask them to what they could offer in comparison. A good trust worthy lender will have NO problem laying everything out for you.
Other things to consider are location and convenience. Most new builds tend to be on the outskirts of town. They are not’t usually located near grocery stores, shops, amenities needed so it will mean a little more driving which can affect your wallet. Yes some of them may be building in a soon “up and coming” town, but how soon? Is it worth the wait? Is it close to schools? Public transportation and/or school buses? Plus be prepared to be living around a construction zone. Most developments take some time to get the neighborhood completed, you may want to ask them for a estimated timeline of when development will be completely done.
Now this is not to discourage you from a new build this is just some things to to take into consideration when deciding. Again, more often than not, once you see a beautiful show home and get “allured” you don’t want anything else. So just prepare yourself by making sure to put what is important on your list and if the new build doesn’t have the items then you should think twice.
Another thing to consider and to research would be the FHA 203K loan, this is a rehabilitation loan. If you decide to find an existing home that out dated or needs a little work. Then you can use this loan to rehab the house. Get some new paint, carpet, appliances and YOU pick it all, almost like a new home. Make sure to find out more about this, here is a link to HUD’s website.
As always if you have any questions, please give me a call or email me. Click here if you would like to complete on online loan application.
Summit Mortgage Corporation
303-779-0591 ext. 101