Build? Rent? Buy – new or resale? There are numerous decisions to make when you decide you’re in the market for a new home. In the midst of such an exciting time, where fun decisions need to be made, the last thing you want to worry about is deciding exactly how you’re going to pay for it all and whether or not there’s different payment options for each method. At Nationwide Home Loans, we want you to focus on the fun stuff – like paint color. Our goal is to ensure you have a great understanding of your payment options, and that you land on the perfect one easily based on your home preference and financial situation. Spend your time deciding whether or not you’ll buy new or resale, and we’ll work alongside you as a team, informing you and gathering information along the way, to ensure that the financial part falls into place as easily as the fun stuff does. Allow us to explain a bit more about the difference in buying a new home and buying a resale at when it comes to home loans in Boca Raton.
Practical Considerations of New vs Used in Terms of Home Value
There are benefits to buying new and to buying resale, both of which can be explored thoroughly with a NHL Lending expert. First and foremost, there are certain aspects of the home that will determine it’s value in a healthy way, both in a new and a pre-owned home: location and square footage being the main two. Property value and tax value can be calculated by a licensed realtor to determine how much the home is actually worth. The problem that many people run into when buying resale is that the seller is asking for an amount that’s higher than resale value – perhaps because they bought the home when property values were higher and are trying to get their money out of the home.
Many buyers pay no attention to property value and jump through hoops to meet the seller where they are. The seller typically justifies their asking price with minimal cost upgrades, which is deceitful to the buyer and puts them in a situation where they end up paying way too much for the home. A lending expert at Nationwide Home Loans can help you as the buyer navigate the numbers to determine whether or not a significantly lower counter-offer is justifiable. Take our word for it – don’t choose a realtor or lender who can’t help you navigate this process! You’ll likely save thousands for having a professional guide you through the resale buying process.
Loan Options – New or Resale
If you’ve determined to work with an NHL lending professional to ensure that the home you’ll be buying is where it should be in terms of value, it really doesn’t matter whether or not you search for a new one or a preowned one – our mortgage options apply to both! So, what’s your preference? New homes tend to be a blank slate… a place where you can put your personalized stamp of life first, without covering up or changing anyone else’s sign of life. A pre-owned home, though lived in, often comes with the benefits of upgrades made on someone else’s dime. Pick which option you’d like to pursue (or pursue both), and then select one of the many mortgage options that we have for you at Nationwide Home Loans.
If you’re a veteran or are currently serving our country in our military, why not apply for a VA Loan? You have a family, you’d like to build equity, but you’re not sure how long you’ll be where you are and you don’t have the savings stashed to put down a downpayment. You’re not sure where to look, whether to buy new, or whether to buy resale. VA loans take a lot of the work out of the process for you, as they are mortgages which are guaranteed by the U.S. Department of Veterans Affairs. Veterans and service-members can qualify for a VA loan, which offers a fixed interest rate, no downpayment necessary, and no closing costs required. The only thing needed to apply for a VA loan is a VA issued certificate of eligibility, which can be accessed and applied for at the United States Military web site (www.usmilitary.com).
A conforming loan is the type of loan that’s most commonly used for the everyday citizen, otherwise known as the conventional loan. At NHL Lending, we offer conforming loans that follow the terms established by Fannie Mae and Freddie Mac. These loans are usually equal to or less than the rates set by the two establishments, and come with a few payment options (fixed rate, 30 year, 15 year mortgage). A fixed rate mortgage won’t change over time as the Federal Interest rate does, which makes it a great option in an unstable economy. A downpayment is required for this type of loan, and buyers can choose whether or not they continue payments over a 15 year period or a 30 year period.
If you feel as though you’re buying new or resale at a time when interest rates are higher than usual, an adjustable rate mortgage might be the way to go, and we have that option at NHL Lending as well. The Adjustable rate mortgage is similar to a fixed rate conforming loan, the main difference being the rate is adjustable, not fixed. Though most home buyers like the idea of knowing what their month to month interest rate will be, some like the idea of knowing that it could drop significantly over time.
Maybe you’re afraid that you won’t qualify for a mortgage through a lender due to factors completely beyond their control. Mortgage insurance, in this case, will be your saving grace, whether you buy new or used. We offer FHA loans (federal government agency loans) for low-to-moderate income families who might struggle to qualify for or secure a regular conforming loan. How does this work? The FHA is an actual government agency who assists first-time buyers and low income families by providing mortgage insurance to private lenders. Interest rates are usually the same as a conventional loan, and down payment requirements are usually less. A key piece of information to grasp in FHA loans is that the FHA is not a lender… they merely insure home loans against the borrower’s default, which in turn protects the lender and makes them a little more eager to distribute the loan. A variety of factors will determine how much you’re able to be approved for, making the process of determining the correct home value vital.
Don’t stress out about whether or not you’re making the right decision in buying a new home versus buying resale. The bottom line is that with the help of Nationwide Home Loans, you’ll receive the best home loan rates in Boca Raton, no matter which option you choose!