Buying newly constructed real estate isn’t much different from buying an “already used” home. What variances there are, however, can make all the difference between buying a diamond or a lemon.
Here are a few tips to keep in mind when buying new construction:
Tip #1: Don’t Use The Builder’s Sales Agent – Hire Your Own
If they’re the builder’s agent, they’re being paid to represent the builder, no matter what they tell you. Your own real estate agent, who is representing you, is required to tell you the negatives as well as the positives. The builder’s agent doesn’t have to tell you the drawbacks of the transaction.
Tip #2: Find Your Own Lending Agency
Again, if you go through the builder, the lending agency may offer you a deal that isn’t in your best interest. In addition, the builder may actually own the lending company, and will have full information on your personal progress.
Your real estate agent can refer you to a reputable lender, if you don’t already have one of your own.
Tip #3: Talk To A Real Estate Agent Or Lawyer
Although standard agreements are made to keep everyone out of court, they aren’t necessarily in your best interests. Ask about cancellation rights and make sure you understand both your liability and your commitments. Also, check your contract to make sure it doesn’t contain warnings about health issues.
Tip #4: Decide What Options Or Upgrades You Want
Remember that the profit margin for many builders is highest in upgrades. Find out if your lender allows the options and upgrades you’ve chosen to be added to the loan. If your lender doesn’t allow this, the cost of the upgrades will come out of your pocket in cash.
Tip #5: Research The Builder
It’s amazing how many people think a builder is good, simply because they can build a house. Unless you’re a licensed home inspector, the chance of you catching a cut corner or shoddy building practices is slim to none.
Check out the neighbors’ homes and talk to them. Are the homes a consistent size or are they shrinking in size? Do the neighbors have consistent complaints about the quality of their homes? Also, check public records for lawsuits.
Owning newly constructed real estate and knowing that you’re the first person to live in the home can be a wonderful, exciting experience. Make sure that you protect yourself so you can enjoy it!
Thinking of buying newly constructed real estate? Talk with me before you start shopping. If you visit a builder prior to working with me, I won’t be able to legally represent you with that builder.
To find out more about how I can help you save money and get the best terms when buying newly constructed real estate, call or email your trusted mortgage professional for more information.
Remember safety first for you and your family!
Automated Teller Machine (ATM)
Whooping cough is nothing new when it comes to children’s health – however, this childhood illness is on the rise. This serious disease can sometimes last as long as three months, and it affects over 48 million people every year. Make sure that you know the details about this troubling condition and what to do if it strikes your child.
Who Is Affected By Whooping Cough?
At one time, this highly contagious disease was considered to be an illness that was restricted to young children. However, whooping cough can affect teens and adults as well. It most commonly affects infants and babies who have not received all of their immunizations.
The Symptoms Of Whooping Cough
The main characteristic of whooping cough is a terrible, hacking cough that will not go away. Bouts of coughing are generally followed by a high-pitched gasp for breath that is also referred to as a whoop.
Whooping cough generally begins with symptoms of a mild cold, such as a low fever, runny nose, and a dry cough. As it progresses, mucus levels increase and provoke severe coughing attacks. It can sometimes cause children to turn blue in the face and begin vomiting.
The Cause Of Whooping Cough
Whooping cough is a bacterial infection that is easily passed from person to person through inhalation. There have been two outbreaks in the United States in recent history – one in 2010 and one in 2012. A sneeze or a cough from a person carrying whooping cough can pass it along to someone else.
What To Do If You Suspect Whooping Cough
If your child is exhibiting symptoms of whooping cough, don’t hesitate to make a doctor’s appointment or go to the emergency room. While whooping cough is generally not life-threatening, infants are at a greater risk and complications are possible. Medical staff can diagnose whooping cough using a variety of tests like bacterial cultures, blood work, and x-rays.
Treating Whooping Cough
In older children, whooping cough is easily treated with a two-week course of antibiotics. The most common treatment for infants is hospitalization. Make sure your child gets sufficient rest, stays hydrated, has fresh air, and uses a vaporizer.
Whooping cough is making a comeback, and it’s important that you understand how to protect your family from this disease. The best way to fight whooping cough is by stopping it before it starts – so if you’re due for a tetanus shot, you can get a whooping cough vaccine at the same time. By getting vaccinated and paying attention for the symptoms of whooping cough, you can breathe easy knowing your family is safe.
Are you thinking about using a mortgage to buy a new home? Buying your own piece of local real estate is a major financial investment and one that can require some pretty complex math to fully understand.
In this blog post we’ll discuss mortgage calculators and how to use one of these tools to determine your monthly mortgage payments, interest charges, amortization periods and more.
Determining Your Principal and Down Payment Amounts
To get started with a mortgage calculator you’ll need to know how the price of the home and how much you intend to contribute as a down payment. Generally speaking you’ll want to place a down payment of at least 20 percent in order to avoid having to pay for private mortgage insurance and to give you access to better interest rates.
Choosing Your Interest Rate and Amortization Period
Now that you have an idea of the amount of mortgage financing you’ll need, the next step is to choose your interest rate and amortization period. Different lenders will offer different interest rates for every one of their mortgage products, so again you’ll want to play around with these numbers and run the calculation to see which combination of mortgage financing, interest rate and amortization period gives you a monthly payment that suits your budget.
Using a Mortgage Calculator for Refinancing
If you’re thinking about refinancing your current mortgage you can also use a mortgage calculator to help make the math a bit easier. Simply use your outstanding mortgage balance as the principal amount and then choose an amortization schedule that fits your financial goals. Be sure to keep an eye on your interest payments, as you may find that by refinancing to a longer amortization period your monthly payments go down but your total interest paid is quite a bit higher.
Don’t Forget the Closing Costs
Finally, don’t forget that there are numerous “closing costs” – fees, taxes and more – which you’ll need to factor in to your overall calculation. Closing costs will include everything from home appraisal fees to government filing fees and property taxes, and will vary depending on the home and the city or community you’re buying in.
While online mortgage calculators can handle the tricky math to determine monthly payments and interest costs you may still find that you have questions about your mortgage or some aspect of the process. For more information, contact your local mortgage professional and they’ll be happy to share their advice and expertise.
Refinancing your mortgage is a great way to reduce your monthly payments or take out some of the equity in your home to reinvest in renovations, upgrades or in other areas in your financial portfolio.
Let’s take a quick look at a few questions that you can ask yourself in order to determine whether you should refinance now or wait until sometime in the future.
Can You Lock In A Lower Interest Rate?
Depending on when you first purchased your home and took out your mortgage, you may find that by refinancing now you can lock in a lower interest rate.
Getting a lower rate can end up saving you thousands of dollars a year in interest, but you’ll need to weigh the closing costs of the refinancing against the savings you’ll obtain to ensure that refinancing is worthwhile.
How Much Do You Owe On The Home?
If you still owe a significant amount on your home you may find that it’s worth refinancing, especially if you’re confident that you won’t be selling the home any time soon. Conversely, if you’re very close to having your mortgage paid off you may find that refinancing has little benefit.
Do You Need To Tap Into Your Home Equity?
If you feel that now is the time to tap into the equity you’ve built up in your home over time in order to cover renovation or upgrade costs you may want to consider refinancing. This will allow you to take out a large chunk of cash without having to open a new loan or line of credit. If possible, try to secure a lower interest rate for added benefit.
Do You Plan On Moving?
If you’re planning on moving in the next couple of years then you may want to hold off on refinancing your mortgage. As mentioned above, there are closing costs attached with a refinancing deal and these must be factored in when assessing whether or not you stand to gain or lose.
If you’re staying in your home for the near future there’s a far better chance that the costs of a refinancing will be covered by the amount that you save.
Every financial situation is unique, and you may find that you have other questions about refinancing that aren’t listed above. Don’t hesitate to contact your mortgage professional as they’ve worked with all sorts of refinancing clients and can share helpful advice that is relevant to your situation.
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American Housing Captal LLC. d.b.a TotalChoice Mortgage | NMLS ID 34976
Schaun Blakeslee NMLS#873166 An Illinois Residential Mortgage Licensee, Is Regulated by the State of Illinois Department of Financial and Professional Regulation, Division of Banking located at 100 West Randolph Street 9th Floor, Chicago IL 60601, Mortgage Banking Examinations Phone 312-793-3000
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