New Home Buyer Financing

When buying a house, what should I consider?

Every new home buyer wants to be sure to get the right type of financing. Discover some cool info that all home buyers should know when buying a new build or a pre-existing home.

As a new home buyer, you will have to decide...should I build a house or buy a pre-existing one. Depending of which type of house you want, your financing will be different. Below I'll share the pro's and con's of either choice to help you make the right decision. Soon you will be like this couple visualizing their new home. It will be a reality!

Home buying can be a tedious process. However, because you are the type of new home buyer that does all your homework first, you can approach this monumental project with the utmost of confidence.

Why? Because you have taken the time to understand all of the options available to you. Right now you are doing your research, otherwise you would not be reading this page.

New Home Buyers Choosing to Build

new home buyer

When you think about it, if you're ready to buy that new home, it does not matter if it is a brand new home or even a pre-existing home, it's new to you. First we will talk about the pros and cons of buying a home that has never been lived in before.

A newly constructed home can have some real advantages. One of them is that in most cases, a new home buyer can work with the builder and select your interior and exterior colors, choose your cabinet options and flooring.

While this can present an exciting option for you, it does come with a few things you should consider. The cons may be that you will need window coverings on the inside, and on the outside may require landscaping and perhaps much more.

This is all good, if you have additional money after the closing to cover these costs. In most cases the new home buyer that is getting into their first home, is working with limited funds. If this is the case, then you may want to lean towards a pre-existing home in order to save you the move in costs as mentioned above.

Windows coverings can cost you a great deal of money, it would not be out of order to forecast that you could easily spend a couple of thousand dollars before you even move in. The landscaping on the outside could cost you a few thousand or even more.

Financing is not as simple either. Usually you have to spend more time finding the right kind of lender. Why? Remember, you are building and the builder's financial requirements have to be met. Thus you need a lender who will work with these requirements.

My daughter and her husband built their first home. They had decided to be their own contractor and use subcontractors. She spent a long time finding a lender who would work with them this way.

New Home Buyers Choosing the Pre-Existing Kind

Ok, now what are the pros and cons of buying a pre-existing home? First of all, you save literally thousands of dollars because you do not have to landscape the outside or perhaps buy window coverings for the inside.

If you have the funds to do this, then it may be good to look into a new home. There are many builders that will work with you. If they have homes already built or "shelled in" and are waiting for a buyer, they have money in the deal and want to get their cash out.

In the pre-existing home, you do not have the builder in the picture. You have the seller and the real estate professionals involved. So in my mind, the less people involved in your transaction the better it is for you. Too many people just slow the process down and makes things complicated.

I remember when I was doing mortgages, there were times when I was doing the financing for the first time home buyer and we had the seller, two real estate agents (one on the sellers side and the other on the buyers side) then we had two lawyers. One on each person's side like the real estate agents.

It was a nightmare. The lawyers, who were selected by the buyer and the seller could not agree on the terms of the contract. This went on for several months.

Then right when my buyer was ready to give up, they suddenly came to an agreement. Of course all the while, they were finding ways to add on more fees to justify their time involved. Kind of reminds me of what happened in Washington during the budget crisis of 2011. All of these guys were lawyers too.

Sorry, I got off on a tangent here, I just want you to think simple. The less people in your transaction, the better it is for you. What really grinds me about all of this is that without you, the new home buyer, nobody would have a chance at this transaction. Now I'm sure sellers and other professionals would argue with me on this.

I always tried to get people to see, no buyer, no money, no deal!

You are the customer, this is your purchase transaction and you must insist on full disclosure and to be well educated on the process. This entire website can help you as the home buyer if you take the time to research and educate yourself.

Best Mortgage or Loan Financing for Your New House

Now it does not matter if you are buying a new house or a pre-existing one, you can use the same FHA 203b loan for the purchase money. FHA financing has been the single best option for the new home buyer for many years now. In fact since 1934 FHA (Federal Housing Authority) has been guaranteeing loans for the first time home buyer.

What you have to make sure of is that your real estate agent is on your side and understands how this mortgage product works. Chances are, unless you find an agent who works all the time with first time home buyers, you will know more about how this financing works than they do.

You want to read through this website thoroughly and you'll have all the information you need to make an educated decision. The reason you want this kind of financing is it offers you the best of all worlds when it comes to buying that house. Low down payment, relaxed credit standards when compared to the conventional loan and much more.

However, you do have choices even here. When lenders have to compete for your business and after they come to see you know what you're talking about, they will work hard to help you get what your looking for.

So, now it's up to you to decide. You can be a new home buyer and move into a newly built home or you can buy one that has been lived in. Either still offers you a new place to lay your head

What a New Home Buyer May Want to Consider Next...

Where can a new home buyer find a real estate agent who works well with your specific needs? Best Real Estate Agents Directory is an awesome list of agents who do just that.

Should you consider home warranty insurance? Home Warranty Insurance - Worth the Costs will explain what is really covered and what is not to help you make that decision.

What items may I need to get ready for that big move? Find cheap moving boxes will help you with all those moving needs.

There are some things you should consider to secure your new home. Take a look at what some of these things are by reading Buying Into Home Security.

Do you have more questions before you finalize the deal? Have a question is a cool place to find answers to your questions. If you cannot find your particular answer, then its also a cool place to ask away. Go ahead...pick my brain!

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