Why not get the most for your money and buy a brand new home? With so many beautiful new homes on the market, you’re sure to find the perfect home in your price range. I specialize in helping home buyers find and build great new homes. I work on your behalf to save you time, money, and headaches.
Low maintenance costs
New homes come with everything new, which means fewer repairs on appliances, carpet and siding, giving you more free time to enjoy your home and your family.
Warranties
There is usually a one-year warranty on workmanship and materials. Many builders also offer bonded and insured structural warranties for ten years.
Amenities
New homes usually include built-in appliances, central air conditioning and heating systems, more electrical outlets and much more.
Energy Efficiency
New homes consume half as much energy as homes built prior to 1980. This benefits the environment, your health and your wallet.
Safety Features
Better heating systems, built-in smoke detectors, and better electrical power and wiring systems all decrease the risk of fire in a new home.
Size
On average, a home built today has 700 more square feet of living space than one built 20 years ago. This means more windows, closet space, spacious garages, larger kitchens and more bathrooms.
Spacious Floor Plan Options
New home buyers can choose from hundreds of floor plans to find a home that matches their lifestyle.
Choice of Interior and Exterior Finishing
New home buyers can choose carpet colors, wall coverings, paint colors, lighting fixtures, trees, shrubbery, etc.
Home-Site Selection
Prospective buyers can choose apiece of land and build a house to suit their needs.
Value
New homes have a longer life expectancy; therefore they have higher appraisal and more favorable resale values than older homes.
Buying the House That Fits Your Budget
With so many beautiful new homes on the market, you’re sure to find the perfect home in your price range. But how do you figure out how much house is right for you?
Lending companies generally recommend that you spend no more than 28% of your gross monthly income on your monthly mortgage payment. Your mortgage consists of principal, interest, taxes and insurance premiums (PITI). There are many lending companies ready to review your household income and expenses to quickly determine the price range that best suits your budget. Many lending services can be found online.
If you don’t want to use the “28% rule” noted above, you can calculate the amount yourself. To begin the budget process, determine your household’s monthly income and deduct all non-housing expenses. You should be able to make a reasonable estimate of your spending habits and expenses from your receipts, checkbook and credit card statements.
Once you identify where you spend your money, calculate the house payment you can afford. Two worksheets are included below to help you. The first worksheet helps determine your monthly housing costs. The second helps calculate the amount of money available for a down payment on your new home. After you have determined a comfortable mortgage payment and down payment, consult a monthly payment chart to find the qualifying loan amount. The loan amount plus your down payment will be the top price range of the house you can comfortably afford.
How Much Can You Afford?
1. Household Income
2. Take Home Pay __________________
Any other income __________________
TOTAL (1) __________________
2. Average Monthly Non-Housing Expenses
Automobile Costs and Insurance __________________
Clothing - purchase and cleaning __________________
Commuting Expenses __________________
Credit Card Payments __________________
Groceries and Household Supplies __________________
Medical Costs and Insurance __________________
Personal Spending Money __________________
Savings/Investment Programs __________________
Telephone - including cellular __________________
Miscellaneous Expenses
TOTAL (2) __________________
3. Monthly Income Available For Housing
Total Monthly Income (1) __________________
Minus (-) Total Non-Housing Expenses (2)
TOTAL (3) __________________
The dollar figure (TOTAL 3) represents the money you have available for monthly housing expenses. The best price range for your budget is also dependent upon how much cash you have available for a down payment.
How Much Can You Afford?
Down payments usually range from 5 to 25 percent of the total cost of the home. While a large down payment can lower your overall loan, you may not want to use all of your investments for this purpose. There are many mortgage options from lenders that have varying down payment
requirements.
For starters, calculate a down payment estimate using this worksheet.
1. Available Funds
Equity in present home __________________
Savings __________________
Investments/Mutual Funds (current value) __________________
Insurance (cash surrender value) __________________
Other available funds __________________
TOTAL (4) __________________
2. Expected Expenses
Closing Costs (About 5%) __________________
Furniture/Furnishings __________________
Alterations or Landscaping (if needed) __________________
Moving Costs __________________
Utility Connection Fees __________________
TOTAL (5) __________________
3. Available Down Payment Funds
Available Funds (4) __________________
Minus (-) Expected Expenses (5) __________________
AVAILABLE FOR DOWN PAYMENT
__________________