Should I Buy a Used Home or A New Home?

Should I Buy a Used home or A New Home?

Untouched and Clean

The most obvious benefit to buying a new home as opposed to old, existing, or used is that it’s brand spanking new. It’s untouched, it’s clean, everything is in good working order and nothing needs to be repaired.

That’s a pretty huge incentive to buy new. You won’t have to worry about the typical costs of homeownership for the first several years, right?

Another benefit to buying new is that the home should have all the latest amenities. Remember when it was all the rage to have stainless steel appliances and granite countertops?

Additionally, new home buyers often get the opportunity to fine-tune the home they buy by selecting certain features, colors, styles, etc., and even financing any add-ons into the mortgage.

And speaking of mortgages, most home builders have their own financing departments that make it easy to get a mortgage. Whether it’s the best deal is another question, but if you simply want in, your odds are probably better with a new home.  The builder has a vested interest to get you financing.

You can even pick among different sizes and floor plans to get just the right amount of space, as opposed to having to conform to what’s available in the existing market.

You might be thinking, hey, this sounds great, sign me up now! Why on earth would I want a used home with dodgy popcorn ceilings and laminate countertops?

But wait, there’s more to homes than what’s on the inside and outside of a home.

Don’t Forget About Location…

Let’s face it; the old saying is that location is everything in real estate is true. It’s always been true, and always will be true. That is, if you want to see your property actually go up in value.

And guess what. Brand new homes aren’t being built in the best locations. When it comes down to it, there’s no space for a new development in an established or central location.

Sure, you might see a new condo development, but new homes most likely won’t be that central. They’ll be on the outskirts of town, or in a “trendy” or “upcoming” area.

In other words, there’s going to be a commute if you buy new, and the location might be questionable at best in terms of value.

With an existing or used home, you can buy in the heart of the city, or in an area you know well that is insulated by a lack of available space and construction.

That buffer means the property should hold up well in terms of value, even during a downturn, assuming the area isn’t subject to obsolescence. A used home might also give you the ability to walk to work, or to restaurants, bars, shops, and so on.

At the same time, a used home doesn’t necessarily have to be old inside. If you shop around, you might be able to find an old home that has already been remodeled to your liking.

And even if it hasn’t, that shouldn’t stop you from buying it and making renovations if it’s got good bones.

New Homes Are 20% More Expensive

Back in May, Trulia determined that new homes (built in 2013-2014) cost roughly 20% more than similar existing homes.

They also found that two in five Americans would prefer to buy a new home, compared to just 21% opting for an existing home and 38% declaring no preference.

But when it came to that 20% markup, only 17% would actually pay the premium to get the new house.

So to get this straight, you might have to pay 20% for a new home AND you won’t be in a central location. You’ll be in an untested location that might wind up being a ghost neighborhood in a decade if things don’t work out as planned.

Of course, if you opt for new you’ll probably have all the latest technology and no major issues. If you go with an older home, you might have major bills on your hands when the roof gives out, or you discover serious plumbing issues.

So you’ll need to do your due diligence when buying an old home to ensure the property is in adequate shape. Then again, I’ve heard really negative stuff about new homes too, with many claiming workmanship has gone to you know what these days.

At the end of the day, it’s probably okay to consider both new and used homes when looking for a property. As long as you take the time to inspect the property and the neighborhood, negotiate the right place, and make sure you can afford the place, you should be okay.

Lastly, you should make sure you actually want to own as opposed to rent because owning comes with many more responsibilities, whether you buy new or used.

Advantages to Buying a New Home

• Brand new, clean, no major issues
• Move-in ready (no wait or work to be done)
• Cool new technology
• Green features could reduce utility costs and/or provide tax incentives
• Trendy design
• Ability to customize
• Can finance additions into mortgage
• Possibly easier to get financing with home builder
• Less competition, more choices on floor plans

Disadvantages to Buying a New Home

• More expensive than buying used
• Location probably isn’t ideal
• Despite being new, workmanship might be questionable
• Could be subject to costly HOAs, even if it’s a house
• Neighborhood dynamic is unknown
• Property values might be more volatile
• Construction nearby (eyesore and noisy)
• More cookie-cutter, less unique

Advantages to Buying an Existing Home

• Possibly cheaper
• Better, more central location
• Can buy in an established school district
• Can own in a more reputable and recognized neighborhood
• Old house might have new upgrades
• You can always renovate if need be
• Older houses tend to have more character, custom design
• Could actually be built better than a new home

Disadvantages to Buying an Existing Home

• Harder to find an existing home (less inventory)
• Might have major problems you don’t initially notice
• Financing could be tricky (if unpermitted work, etc.)
• Could still be more expensive than buying new
• Fewer amenities, especially as homes get more tech-integrated
• The neighborhood might be in decline
• More competition to get your offer accepted
• Might have to settle for a smaller, less ideal home to get right location

For more information about this subject or on loans please contact us at 713-373-0345 or email us info@nuhomegroup.com

Frank Marta NMLS# 245813/835196

I help a lot of first time home buyers and as a first time home buyer I understand there are many questions or concerns that they may have.  I simply put together a short summary of the Loan Process here at NuHome Group.  This summary is very brief to help not complicate things.

Qualification- you would need to provide certain documentation to be pre-qualified. Thirty days of Pay stubs, 2 recent months bank statements, 2 years tax returns w/ W-2's (2013-2012) or 1099’s and other forms of income may be requested, a front and back copy of your social security and photo ID is required.

Approved- you must know that the approvals are only good for 90 days, which is including finding your house. Thus only gives you about 45-60 days to find the house.  If you can’t find a home within that time frame then you may need to be re-qualified.

Find house- work with your Realtor/ Representative to find you house.  Remember if you are buying with FHA Financing there may be some restrictions.  I have noticed that there have been many cases of people having trouble finding houses where the seller's don't want FHA financing.  This can be troublesome.  So make sure which you know what type of financing your obtaining (FHA or Conventional). 

Negotiating the deal- there are some things that you should know about when negotiating for your home.  If you ask for seller contribution for the purchase of your house the seller will give you the negotiated amount to be applied to your closing costs.  FHA allows 6% and Conventional allows 3% or closing.  If the seller pays the Title Policy and survey this will help lower closing costs. 

Executed Contract- Once the offer is accepted you will be expected to pay the Earnest money to the Title Company for them to take the house off of the market.

Inspection- Once you have an executed contract you would need to have an inspection on the property you’re in process of buying. This very crucial and will help you know what exactly is wrong with the property if any.  For example, this inspection will notify you whether the property has: Roof, electrical, AC, or plumbing damage.  These are some of the the major things you are normally confronted with. If your problem is cosmetic then, it is at the discretion of both the seller and the buyer.

Appraisal- an appraisal is required for the banks to review. This is a professional analysis of the property and its value.

Disclosures- Once you have a pre-approval and contract then you would set an appointment at your earliest convince to sign disclosures so we can send your file to underwriting.

Loan Submission- Loan is ready to be reviewed by a Lender. In other words, your loan will be sent to a bank for review.

Conditional Approval- the loan will have conditions to be met in order for the approval.  Once these conditions are satisfied then your loan would be sent to closing.

Closing- Before we can close your loan or schedule for closing we would need the Lender to provide us with the closing instructions for the Title Company.

Scheduling closing- Depending on the title company and the TIME OF MONTH!  We will schedule the closing based on the Title Company’s availability and the buyer’s convenience and availability.

Closing table- you would go to the Title Company and sign all documents.

Funding- Certain documents are sent to Lender to review and assure that they have been signed.

Keys- keys are given to you when the loan is funded and money is dispersed.

Move in- Normally, 3 days before closing, you can start transferring the utilities so you can have your utilities by your official move in date.

That's about it.  No problem, right?!  I hope that this helps you better understand NuHome’s Loan Processing.

For more information about this subject or about loans contact us by phone at (713) 373-0345 or via emailinfo@nuhomegroup.com.

Be sure to check out our website!!!

www.nuhomegroup.com

FHA, VA, and USDA Highlights!!

FHA HIGHLIGHTS FHA- 580+ FICO for PURCH, RT, C/O including Flips & High Balance! FHA - Repair Escrows OK! FHA - 203k Full & Streamline w/ 580 FICO! FHA - HUD REO $100 Down Homes OK! FHA- MFG HOMES OK - 580+ FICO - 620+ FOR SINGLE WIDE   FHA- No LTV Caps! FHA- NO OVERLAYS!!! FHA - YSP Credit UNLIMITED!!! FHA- No DTI CAP - Follow AUS Findings!!! FHA- NO Minimum Credit History or Trades with AUS Approval! FHA- No VOR Unless Required by DU Findings! FHA- Transfer appraisals from ANY lender/AMC OK! FHA- Borrowers with 1 FICO OK! FHA- Collections - HUD Guides Apply - Medical & Charge Offs Ignored! FHA- Mortgage Late OK if AUS Approved!!! FHA- Non-Occupant co-signers - NO MINIMUM FICO! FHA- ESCROW STATE - Non Purchasing Spouse derog’s ignored - only affects DTI FHA- Borrower w/ Work Permits, Non-Resident Alien OK! FHA- 1 Day off Market for Cashout Refi! - Must be off market before date of loan application! FHA- Rental Income on 2-4 Units OK for FTHB!!! FHA- Streamline - 580 Score for- Conforming & JUMBO! No Appraisal, No Income, No Credit Qualifying!!! FHA- Streamline - Max 1x30 in past 12 mos - Cannot be late within past 90 Days! FHA- Streamline -Investment and 2nd Homes OK! FHA- Streamline NO SCORE - Ignore other property

VA HIGHLIGHTS VA- Min 580 FICO regardless of Loan Amount! VA- MFG HOMES OK - 580+ FICO - 620+ FOR SINGLE WIDE  VA- LP or DU FINDINGS OK!!!  VA- NO OVERLAYS!!! VA - YSP Credit UNLIMITED!!! VA- No DTI CAP - Follow AUS Findings!!! VA- NO Minimum Credit History or Trades with Approved or Refer AUS Findings! VA- No VOR Unless Required by DU Findings! VA- Borrowers with 1 FICO OK! VA- NO COLLECTIONS paid UNLESS required by AUS! VA- Up to 2x30 OK on RT, Cashout, Purchase! VA - IRRRL 580+ W/ Appraisal 100% LTV! VA - IRRRL 620+ W/O Appraisal ANY LTV! VA-IRRRL 620+ W/O Appraisal HIGH BALANCE!  VA- IRRRL Job Listed on 1003 Only VA- IRRRL No Income OK VA - C/O Refi's up to 100%!! VA- Approved/Eligible - Unlimited DTI!   VA- REFER/ELIGIBLE - 43% Max Ratio VA- 580+ - All Purchases and all REFIs!!! VA- No Seller Title Seasoning!!! VA- Seller can pay all closing costs & Prepaids + ADDITIONAL 4% VA- 1 Day Off MLS FOR all Refi's including Cashout!

USDA HIGHLIGHTS USDA- Min 580 FICO USDA- Order your own appraisal through any AMC USDA- 640+ - No Overlays to GUS Findings USDA- 640+ - No Trades/Alt Trades OK - No Collections Paid USDA- 580-639 - Refers OK - Max 29/41 Ratio USDA- 640+ - No Rent Verify No VOR USDA- 640+ - No Tradeline Requirement USDA- No Title Seasoning USDA- Max Loan $417k - 102% LTV Of Appraised Value USDA- .40% Monthly MI, 2% Guarantee Fee USDA- No Asset Verification if No Funds needed to close, No reserves USDA-Gift Funds Allowed - Max 6% Seller Concession USDA-Ratios to 36/48 w/ 640+ and GUS Approval w/ Comp. Factors USDA - File sent to RD within 24 Hours of UW Clear! USDA - No Rent Verif. Required Unless we need Ratio Waiver & GUS Refer USDA - Streamline Refi ok w/ 580+ FICO

For more information about this subject or loans contact us by phone at 713-373-0345 or via email info@nuhomegroup.com

Frank Marta NMLS# 245813/835196

www.nuhomegroup.com

Burn The Ships!!!

I was recently at a business training to learn more about real estate. Instead of the training being focused on logical and practical operations it was more of a sermon.  The guest speaker spoke about how we give ourselves the option to fail by the way we emotionally express ourselves on a daily bases.  He said “We just give up too easily sometimes.”  I agree with him on that point.  Then he went on about explaining the words we declare sometimes. He stated, “We worry ourselves and even curse ourselves, then wonder why we receive the results that we get.”  I couldn’t argue that for one second. As he went on about his lesson he used metaphoric “ships that we have in our lives.”  These ships represent; doubt, the familiar, the place of comfort, and simply things that we go back to when times get rough.

 I remember reading the story of Peter when he was on the boat. At the time, Peter and a few of his disciples were off shore, there were waves and wind thrusting against his boat. They then saw a man walking on water and were terrified because they thought it was a ghost, little did they know it was Jesus.  Jesus spoke to them saying they should have courage and not to be afraid for it was Him walking on water not a ghost. Peter then told Jesus “Lord, if it’s you, tell me to come to you on the water.” Jesus said “come.” Peter then walked on to the water to go towards Jesus. But when saw the wind he was afraid and began to sink in the water. He cried out “LORD, SAVE ME!” Jesus immediately reached out to his hand and caught him. He said, “You of little faith, why did you doubt?”  

Now picture yourself in Peter’s shoes, taking your first step on the surface of the water because you’re trying to go towards Jesus. Imagine your self walking on water but feeling the strong winds push against you and seeing waves come to you. Would you be scared? Would you look back at the boat to see how far you were from it? Would you have any doubt?  I personally would be frightened; I would probably look around in panic to see where the boat was. This is what we do spiritually when we hear our calling but lose our concentration on the Lord.  We look for something to save us, when we have the best life preserver with us all along.

The Instructor then went on about relating the story of Peter to the story of Hernan Cortes the Spanish Conquistador. Cortes had planned to attack the Mexican Azteca’s with a strategic plan because the Spaniards wanted to conquer Mexico and raid the land for their famous precious treasure that they possessed. The Spaniards were not only seriously outnumbered but they had to be willing to die for their Queen and acknowledge that many would die due to the odds. Nevertheless, Cortes motivated the troops by exposing that they would forever be remembered and spoke about in history. Upon the battle, Mr. Cortes gave one of the best battle cries ever recorded. He shouted "BURN THE SHIPS"!  This was the point of no return. The army was stunned and excited to push forward by these words when in fact, they had no other option. They simply had to give it their all and die for what they believed in. 

That is the point in our faith and in our industry.  It is not Ludacris to be a Broker, Loan Officer, or Realtor in this industry, nor in our faith.  Being faithful in our lives and industry isn’t absurd, it’s courageous.  Let us be brave for “yet in all things we are more than conquerors through Him who loved us. For I am persuaded that neither death nor life, nor angels nor principalities nor powers, nor things present, nor things to come, nor height nor depth, nor any other created things, shall be able to separate us from the love of God which is in Christ Jesus our Lord” (Romans 8:37-39).  I was so pumped up and refreshed after the training; it was personally much need it. Sit back, analyze, and ask yourself “Am I ready to become a conqueror?” YES YOU ARE!!!

I really hope that this story helps it did it for me.

Primera ves Comprando Casa? Necesitas ayuda? Estamos aquí para ayudar!

Está usted interesado en comprar una casa? El equipo NuHome Group le ayudará a conseguir pre-aprobado en menos de 24 horas. La compra de una casa hoy en el mercado actual es una gran inversión. Muchas veces es más barato tener una casa que alquilar. Por lo tanto, no deje que estos tipos de interés históricamente bajos escapen. Compre su casa hoy!

El primer paso en la compra de una casa, está asegurando su préstamo hipotecario. Las compañías hipotecarias tienen diferentes requisitos para los préstamos.

He aquí un desglose de los 3 factores importantes que pueden determinar sus calificaciones.
1. Las puntuaciones de crédito (580 min)
2. Ingresos vs Deuda (Deuda a ingreso de) 

3. Enganche (fondos para cerrar).

Documentación adicional será requerido para conseguir que una aprobación, pero vamos a caminar a través del proceso. Nos aseguraremos de que el proceso de compra se hará más fácil para usted.


Llámenos hoy estamos preferido prestamista para la vivienda de Houston.

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

Realtors Guide For Home Loan Process!!!

Realtors guide for Home Loan Process

Introduction: I have come up with this system to better explain the loan process for the Real Estate community.  I as a Loan Officer, try to educate my fellow Real Estate colleagues in the loan process.  If we all are on the same page then we can work in better harmony.  With the lenders guidelines becoming tighter we have to band together and form a better system of working together.  So that is why I along with some of my Real Estate counter parts we are creating this tool for all of us.

As the Loan officer, I try to collect all documents upfront from the prospective home buyer.  Why? Because no one wants any surprises at the last minute not if we can avoid it upfront upon application.   

 Normal documents needed upon Application:

1. Last 30 days of pay stubs (All Applicants)
2. Last 2 years tax returns w/ W-2's (All Applicants)
3. Most Recent 2 months bank statements/ assets (Proof of funds to close)*
4. Copies of ID(s) and SS Card(s) and Resident Alien Card(s) (If Applicable)
5. Money for Credit Report $50.00 (Must charge for serious applicants only)

*This is a trouble spot a lot of times.  If we can't prove funds to close this slows down the whole process.

 We run their credit and then determine what to do from there.  There are three things that can happen at this point.  Once approved and they can start looking for house. Two, not approved and work on credit with a Credit Repair or with credit repair tactics.  This takes from 3-6 months depending on the severity of the credit issues.  Three, if not approved and decides to payoff collections or paying down on CC Balances.  This takes about 1-2 weeks for the Rapid Rescore then start to look for the home.

 At this point my work hasn't started yet!  Once client is approved and looking for the house it is important to consider some of these tips.  Depending on the type of loan approved for it may be helpful for you to know some of these details when looking for the house. 

 FHA Loan tips when looking for home:

1. Hud Homes- If you go over the appraised value on the site then the client will have to come up with the difference.  Example if website says that the house's value is $100,000 and you offer $105,500 then your client will have to pay $5,500 down for that house even if FHA minimum down payment is 3.5%.  Why because the house has already been appraised and lenders have to go by them, no exceptions.
2. Foreclosures- Most Foreclosures will not make any repairs to the house to close, so keep this in mind when showing Foreclosures.
3. Foreclosures- Not all banks allow FHA financing.
4. Foreclosures- Mainly Fannie Mae or Freddie Mac foreclosures you should ask for 45 days for closing since they ask for docs to be at title like 4-7 days prior to closing to request there approval to the HUD-1 Settlement statement.
5. Flips - Seller must be on title for more than 6 months before closing.  Flips must be on title for more than 6 months and can't make more than 100% profit.

 Under contract:

Once you're under contract must provide me with a clear copy of contract with copy of Earnest Money.  Canceled copy of earnest money check if gave personal check.  Copy of Cashiers check and bank statement to prove came out of bank account. If not then we can't have lender count the credit on HUD statement.

 Loan process begins:

Step 1: Set appointment with buyer to come by office to sign disclosures. (Within 3 days of executed contract date)

Step 2: Price loan with all lenders and Lock Loan. (Day 1-3)

Step 3: Loan processor begins with loan checks file for out dated docs. (Day 1-2) 

Step 4: Orders request for Title work (Day 1-2)

Step 5: Order request for Verification of Employment (day 2-4)

Step 6: Order request for Hazard Insurance (Day 2-4)

Step 7: Order Appraisal (Day 4-6)

Step 8: Orders FHA Case Number and CAIVERS No.(Day 6-7)

Step 9: Order LDP and GSA (Day 7-8)

Step 10: Begin to package loan (Day 8-10)

Step 11:  Send out loan to Lender (Day 8-10)

Step 12:  Turn times for lender (Day 11-15)**

Step 13:  Lenders conditions (Day 16)

Step 14:  Fill conditions (Day 16-20)

Step 15:  Lender puts loan CTC (Day 22)

Step 16:  Lender sends out docs (Day 23-25)

Step 17:  Set closing date (Day 26-29)

*This process can take a bit less or more depending on if something is delayed (Verifications or Proof of funds to close).

**Some lenders have longer turn times than others. (580 Lender want 15 days for submission)

 Realtors guide for loan process created by Frank Marta (Texas Home Loan Specialist).

For more information about loans or this topic please contact us at info@nuhomegroup.com or call us at (713) 455-0134

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

A Special Video

Although most of my blogs are mostly pertained to Mortgages and Real Estate, I thought it would be neat to throw in something a little different.

As most know, I am a firm believer in Jesus Christ, I’ve built my foundation on his rock with not only my family, but with my business as well. I came across this amazing video and would like to share it with the world. I’m quite sure someone will look at this video and think to their selves, “Gosh, this is me!”

I hope you view this video and analyze it fully. I’d appreciate if you’d keep the rude comments to yourself or simply skip this blog. If you have any questions regarding this video please feel free to comment and ask below, I’d be happy to answer. Thank you and have a blessed day.

(If you can not view the video here, here is the actual link, http://vimeo.com/51565514 )