Buying a New Home vs. Old Home

One of the first decisions most home buyers have to make is: Should I buy a new home or an older home? Obviously, there are pros and cons on both sides of the fence.

Pros and Cons of Buying a New Home
Buying a new home usually means you will have a warranty. Also, if you have a home built, you will be able to pick certain features and floorplans that suit your needs. On top of that, there's just something about buying a brand new home that appeals to most buyers. Of course, you'll pay a premium for all of these things. New homes will almost always cost more than comparable homes that are being sold by the homeowner.

Pros and Cons of Buying Older Homes
The most obvious advantage of buying an older home is the cost factor. You will generally pay a much lower price for an older / existing home than you would pay for a new home that is comparable in size. The major downsides to buying an older home is that you face more potential risks in terms of deterioration and other age-related factors.

A Florida news website recently ran a good article that delves deeper into the dilemma of buying a new home or an older home. Here's an excerpt from that article:

Grimes noted that one downside to buying in a new neighborhood can be putting up with noise and construction activity. A lack of mature vegetation can also be a turnoff. Architectural styles tend to be more homogenous, versus older neighborhoods where there may have been multiple builders, resulting in a more eclectic ambience.

Read the full article here

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Buying Foreclosure Properties

A congressional report released last week estimates that nearly two million homeowners will face foreclosure by 2009, largely as a result of subprime mortgage loans.

This will be hurtful for some but helpful for others. Obviously, the homeowners will be the ones hurting. But for real estate investors, rising foreclosures equal greater investment opportunities. For this latter group, we have posted some new information on the main website about buying foreclosure properties. We will be expanding the tutorial over time, but it's pretty informative in its current state.

Read the Tutorial:
Buying Foreclosures - An Investor's Guide

Subprime Mortgage Foreclosures in U.S.

Press release source

Two Million Subprime-Mortgage Foreclosures Expected by 2009

New Foreclosure Online, which provides information about foreclosed homes, will be greatly affected by numerous foreclosures anticipated in a Congressional report.

Washington, DC (PRWEB) October 28, 2007 -- A Congressional report released this week states that 2 million subprime-mortgage foreclosures will likely take place by 2009. New Foreclosures Online, found at www.newforeclosureonline.com, will be significantly affected if this occurs. The site provides information about foreclosed homes for sale across the nation.

The Congressional report said that the anticipated foreclosures will occur if home prices should continue to decrease at the same spiraling rate. An estimated $71 billion in housing wealth will be destroyed, and states will lose $917 million in property tax revenue because of these foreclosures. There will, however, be more homes available to new buyers.

Politicians in Washington and legal movers and shakers have come up with some plans to address the deteriorating subprime problem, but for now there should continue to be more foreclosures every day. This occurs when homeowners can no longer continue to pay their home loan and all of the associated fees, especially when they have an mortgage that adjusts to the current market after a couple of years in the home.

As foreclosures increase, New Foreclosures Online will be available to provide information to all interested parties.

To find out more, visit www.newforeclosureonline.com.

About New Foreclosures Online:
Thousands of houses are foreclosed each day in the United States, and even more people are interested in buying them for one reason of another. New Foreclosures Online is a Web site that specializes in making the process of buying a foreclosed house easier. Interested buyers only have to join and wait for information, and when they find a house that fits into their budget and preferences, they can buy it. The process is simple, but without this list, finding the right house would be nearly impossible.

Considering Tradeoffs When Buying a Home

Should you buy the dream home that comes with a nasty commute to your job location? Or should you buy the smaller home within convenient driving distance of your job?

Most home buyers have faced this kind of decision at one point or another. I myself remember facing such a dilemma as a first-time buyer in Maryland. The home we really wanted would have meant a commute of nearly one hour both ways. Ouch! So we eventually chose the "runner up" home and were happy with the much shorter commute.

A recent article on TheLedger.com talks about this issue and offers some pointers on making such a decision when buying a home.

Here's an article excerpt:

Are you seriously considering the purchase of an older home to live in a neighborhood close to the city? In that case, you'll want to be careful in the selection of a home inspector to go over the property.

Read the full article here

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Get more home buying tips at HomeBuyingInstitute.com
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5 Home Buying Tips for First Time Buyers

Countrywide Provides 5 Home Buying Tips for First Time Buyers

Home buying can be perceived as one of the most complicated transactions a person can make. That is why Countrywide Home Loans offers five home buying secrets that most first-time buyers may not know. These helpful home buying tips may help reduce confusion about mortgage payments and the cost of buying a house.

Calabasas, CA (Vocus/PRWEB ) October 23, 2007 -- Home buying can be perceived as one of the most complicated transactions a person can make. That is why Countrywide Home Loans offers five home buying secrets that most first-time buyers may not know. These helpful home buying tips may help reduce confusion about mortgage payments and the cost of buying a house.

Countrywide Home Loans understands that home buying can be a difficult and confusing process, from deciding whether homeownership is right for you to finally making the move into your new home. As a result, many people are hesitant to ever start the process, despite their desire to own a home. So, the company also offers personalized, no obligation, home loan consultation. First time buyers can call 1-800-845-0058 or apply online.

“Consumers are becoming more educated and prepared when making major purchases,” said Dan Hanson, managing director, Countrywide Home Loans. “However, buying a home is still an area that is confusing and intimidating to most people. Prospective buyers should visit their local Countrywide branch to discuss personalized financing options. Often, the local branch’s home loan consultants are aware of specific programs and real estate professionals who can help first-time home buyers find the best solution for their needs."

Here are five home buying tips and facts that can help you decide whether to buy a house, negotiate your home purchase and determine which mortgage is best for your personal situation:

1. Mortgage payments might be the same or less than rent payments – The monthly payment on a $250,000, 30-year, fixed rate mortgage at an annual interest rate of six percent (6.273% APR) is $1,499# -- less than what some people pay for rent.

2. Buyers don’t have to put 20 percent down to buy a home – Some lower down payment loans are available for qualified buyers. For instance, three and five percent down payments are still available, and some lenders offer low down payment options to help qualified buyers purchase a home. This all adds up to less money out-of-pocket to buy a home.

3. Buyers may ask sellers to pay for closing costs – As part of the negotiating process when buying a home, the buyer may ask the seller to pay for a percentage of the non-recurring closing costs, sometimes saving thousands of dollars for the buyer.

4. Buyers can receive gifts or grants from relatives or nonprofit organizations – Certain loan programs will allow a portion of the down payment to come from a relative. Buyers can also investigate down payment assistance programs and grants available through various nonprofit organizations and employers, as well as from many federal, state, and local governments. Many of these programs are designed for qualified low-, moderate- and middle-income borrowers.

5. Buyers should always get preapproved before they begin house hunting – Buyers should get a written preapproval from a reputable mortgage lender before they start shopping for a home. Preapproved buyers will not only know in advance how much home they can afford, but their preapproved status gives them clout with sellers and real estate agents when the time comes to negotiate a sale price. Lastly, preapproval speeds up the loan process after a purchase contract is signed and avoids any last minute heartbreaks after a home is found.

For more home buying information, visit our website at Countrywide.com or call 1-800-845-0058.

# This example is based on a 30-year fixed rate, $250,000 loan in California with 2 points at 6.273% APR (and a 720 FICO score at 80% LTV for a purchase transaction).

About Countrywide Home Loans, Inc.
Countrywide Home Loans, Inc., a member of the Countrywide® family - America's #1 home loan lender – (as ranked for 2006 by Inside Mortgage Finance, Feb. 2, 2007, Copyright 2007), originates, purchases, securitizes, sells and services home loans and is the primary subsidiary of Countrywide Financial Corporation (NYSE: CFC). Countrywide Financial Corporation, through its subsidiaries, provides mortgage banking and diversified financial services in domestic and international markets. Founded in 1969 and a member of the S&P 500 and Fortune 500, Countrywide Financial Corporation is headquartered in Calabasas, California. http://www.countrywide.com

Tips on Buying a Home - A Collection of Tips

Summary: In this blog post, I've compiled some of the most helpful tips on buying a home from all over the Home Buying Institute website. It's a huge website, so I thought I'd help you by pointing out some nuggets of wisdom -- tips on buying a new home.

I remember my first home-buying experience with equal amounts of pleasure and displeasure. The please obviously came from getting out of an apartment and into a new home. The displeasure came from scouring the Internet for tips on buying a home and other information I needed.

That's the main reason I built this website. It's a compilation of the kinds of tips on buying a home that you could eventually find on your own -- but I've said you time and energy by building a comprehensive website full of tips on buying a home and related information.

My Favorite Tips for Buying a Home

Here are some of my favorite home buying tips from all around the website:

Determining Your Home Buying Budget
One of the best tips on buying a home I can give you is to determine a realistic budget for yourself, before you start talking to mortgage lenders. This article explains why.

Choosing a Real Estate Agent
If you're a first-time home buyer, you should probably have a real estate agent's help. Despite how many tips on buying a home I share with you, nothing can take the place of professional, one-on-one guidance.

Using Helpful Home Buying Websites
Personally, I think this website is one of the best places to find tips on buying a home ... but of course I'm biased. So I've made a list of seven other websites that offer home buying tips, tools and information. They are all worth bookmarking in your favorites folder.

Reviewing Your Credit
You should review both your credit report and your credit score before talking to any mortgage lenders. In this section of the website, you'll get instructions on how to go about it. This is one of the best tips for buying a home I can give you -- review your credit early on in the process, and maintain the best credit score you can.

Understanding Your Mortgage Options
Here's a helpful home-buying tip that you simply must follow. Learn about the various types of mortgage loans! By understanding the different home loan options available to you, you'll be better able to choose the right one. This article is a great place to start.

Getting a Home Inspection
A lot of home buyers ask the question, "Do I really need a home inspection?" The answer is yes, you should always have a home inspection prior to purchasing. In fact, I would consider this one of the top-five most important tips for buying a home ... especially if you're a first-time buyer.

Preparing for Settlement
The settlement (or closing) process is the final step in the overall home-buying process. It's when you sign all of the final documents, settle things financially, pay a bunch of fees, and get yourself a set of keys to a new house! But you'll need to prepare for the closing process, and this article (and other articles in the section) will help you do just that.

Home Buying Tips - Conclusion

I hope you've enjoyed this list of tips on buying a home that I put together, and I hope it makes your home-buying experience more enjoyable and successful. Be sure to spend some time traveling around the website. It offers more than 400 articles on all aspects of the home buying process, so it will be time well spent.

Review of New Mortgage Loan Programs

I stumbled across an article today in the Star Tribune (Minnesota newspaper) that Home Buying Institute readers will find helpful.

It's all about changes in the mortgage industry, and mortgage loan programs that are on the rise today. As you know if you've watched the news over the last month, mortgage lenders these days are being pressured to tighten up on their mortgage-qualification guidelines. This comes as a result of the spike in home foreclosures over the last couple of years and the "easy lending" of subprime mortgage loans in the past.

In spite of these supposedly stricter mortgage qualifications, there are still some legitimate mortgage loan programs for buyers will less-than-ideal credit scores.

Here's an article excerpt:

Although the lending landscape has changed, there are still plenty of consumer-friendly loan options for a wide range of home buyers. Ronny Loew, senior mortgage banker at First Horizon Home Loans, Edina, said the industry is responding by taking a more conservative approach. 'We're taking a big step back to the old ways,' he said.

Read the full article here