It is no secret that we are in the midst of a housing crisis. Prices for homes have skyrocketed, and interest rates are lower than ever before. With these two factors in mind, it may seem like now is the perfect time to buy a home!
But wait – what type should you buy? There are three options available to first time homebuyers: buying an existing home, building a new one or buying a fixer upper. In this blog post we will explore all three choices and help you decide which option works best for your needs!
Buy a Fixer Upper If The Location Is Right
It would be easy if you could just buy any house available on the market in your price range, but with so few houses listed compared to the number of buyers out there, it’s not always possible, especially if you are looking in a very specific neighborhood or area. This has led many new homeowners down one path: buying a fixer upper! Fixing up older homes gives them more bang for their buck as they don’t need move-in ready amenities like modern appliances or finished landscaping. In fact, many first time homebuyers are able to update their homes with high end finishes while still staying under budget!
However not all fixer uppers are created equal, and some buyers may find that they aren’t as easy or cheap to fix up compared to others. If you’re considering buying a fixer upper we recommend getting prequalified for your mortgage before embarking on any renovations so that you don’t spend more than expected!
Build New If You Want Peace Of Mind
If you are looking for peace of mind, then building your own may be the best option. New builds come with warranties and other guarantees which ensure that everything is up to code and free from construction defects! Building your own also ensures that you can choose exactly what finishes go into your house, whether it’s hardwood floors or ceramic tiles in the bathroom, granite countertops or stainless steel appliances in the kitchen. Finally, if there happens to be any problems down the line (such as foundation issues) builders will often fix these at no cost during warranty periods so all homeowners have complete peace of mind when they buy a newly built property.
Of course not everyone wants to build their own house. Building a new home is often the most expensive option, and if you don’t have much money saved up for a down payment it can be difficult to purchase land or permits necessary to start building your dream home.
When financing a new build home, they will most likely steer you towards the builders in-house lender with promises of free upgrades, etc. These usually look great on the surface, but come with higher rates or inflated fees, make sure to get a loan estimate from a local mortgage broker like us to compare.
Buy An Existing Home And Improve It If You Want A Quick Close
If you don’t mind a few bumps and bruises along the way, buying an existing home may be right for you. Many first time buyers find this option appealing because they can take their time picking out features without having to wait months or years before moving into their dream house!
With inventory levels so low, buying an existing home does comes with its challenges, namely the fierce competition between buyers. If you find a home that is perfect for you, it may be difficult to get the seller to budge on price or negotiate fixes in order to close quickly, so make sure your finances are ready and you are prequalified before submitting your offer!
Financing For First Time Buyers
Whether you choose to buy, build or fix, there are many options for financing available to first time home buyers. You can get a conventional mortgage with as little as five percent down, or finance your purchase through an FHA loan which only requires three and half percent down! If you’re unsure of what type of property is best for you, we are happy to help walk you through the process so that you know exactly where you stand financially before making any decisions.
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