Part 2: New Year, New Home

Last week’s post introduced our one-year plan to transform a first-time home buyer in the Greensboro / Winston-Salem area from a renter into a homeowner. This week, we take you to the six-month mark. When do you start looking for houses? When do you hire a real estate agent? With six months to go in the home buying process, what should you be doing? Read on to find out more.

Six months out / June

• Research mortgage options and rates. Never take the first mortgage option until you have contacted other lenders. It’s currently a buyer’s market, and interest rates are very low, so shop around and talk to friends who have recently been through the home buying process. Websites such as www.Zillow.com and www.Trulia.com (see last week’s blog post) can help you compare mortgage options and rates across several lenders at once.
   
• Research the benefits of new construction v. “move-in ready” homes.Before you start assessing costs, you may want to research the difference between buying a newly constructed, semi-custom home as opposed to an older home. While you don’t have to decide at once, research both so you can consider the costs of owning and buying each kind of house. 

  If you decide on a newly constructed home because you want the personalization options and the lasting value of a semi-custom home, know that a home builder, such as Tradition Homes, can provide a full-service buying process from preferred lenders, real estate agents, and closing attorneys to closing coordination. 

  Also, if you decide to go for a newly constructed house, be prepared for at least four months of construction time (putting you just inside the New Year with your new house!).

• Research and calculate costs of owning a home. The true cost of owning a home is never just the cost of your monthly mortgage. Utilities tend to be higher on single family homes than apartments, property taxes fluctuate…not to mention repair and general maintenance. Even the cost of mowing your own lawn – the initial investment in the mower, the gasoline to keep it moving, the cost to maintain the equipment – is a factor when you’ve been renting for a long time. Consider the cost, weigh the value, and make sure you are setting enough aside each month to tend to these expenses.
   
• Research and calculate the true cost of buying a home. The true cost of buying a home is usually greater than expected. One of Tradition Homes’ Sales Counselors can sit down with you at the beginning of the home buying process and walk you through this process, especially if you are a first-time home buyer. But don’t wait for them to educate you on costs and fees; know what to expect before you talk to an agent.

• Revise your budget. It’s June. Life has probably changed. Something unexpected has come up, or a new expense looms on the horizon. Whatever the case, revisit your earlier budget and allow some room for these changes. If it’s a major change, like an engagement, an impending wedding or a new job, consider postponing your goal for another year so you can focus on that exciting next step in your life.

Check back next week for Part 3 of New Year, New Home. We’ll take you from the four-month mark to move-in day!