Although most homes in Brentwood for sale are resales, one out of four homebuyers purchases a new home. Which is better: existing or new?
The right answer, of course, is up to you. Both resales and new homes offer advantages. Existing homes are less expensive on average, and are generally closer to, and enjoy the warmth and surroundings of, established neighbourhoods. New homes, on the other hand, offer innovative use of space, modern energy efficiency, and choices of options and upgrades. What’s more, everything is new – even the neighbours.
The choice that’s right for you depends on many things: your finances, your family composition and your taste. The fact of the matter is, most buyers consider both new and resale homes before they decide.
Buying a house is exciting, but it also involves a lot of unknowns. There are so many things to think about when buying a home, like finding a mortgage lender, selecting a neighborhood, choosing a builder, and deciding on features. But there are some things that all buyers should know before making a purchase.
Here are ten tips to make sure you buy a home in Brentwood that meets your needs and fits your budget.
Know What You Want
Before you begin looking for homes in Brentwood, you need to figure out exactly what you want. Do you want a single-family home, townhouse, condo, apartment, or something else? How much space do you need? Where do you want to live? Are you willing to compromise on price? These questions will help you narrow down your search and find the perfect home for you.
Understand Mortgage Options
Mortgage options vary widely depending on your situation. For instance, if you plan to stay put for several years, a fixed rate mortgage may be best. However, if you expect to move frequently, a variable rate mortgage may be right for you. Also, if you’re planning to sell your current home, a short sale or cash-out refinance may be best for you.
You should shop around for mortgages. Ask multiple lenders for quotes, and compare rates and fees. Don’t settle on the first quote you receive; instead, look for the lowest interest rate possible.
Consider Conventional vs. Nonconventional Loans
Conventional loans come in two varieties: conforming and nonconforming. Conforming loans must meet certain guidelines set by the Federal Housing Administration (FHA), whereas nonconforming loans aren’t subject to these requirements. Both types of conventional loans offer low interest rates, but only FHA loans require borrowers to prove their ability to repay the loan.
Nonconforming loans are popular among first-time homebuyers because they allow borrowers to finance larger amounts of money than conforming loans. They typically cost more upfront, though, since they carry higher interest rates.
Look Into Refinancing Before Buying
Refinancing allows homeowners to convert their existing mortgage into a different type of loan. For example, refinancing from a 15-year fixed-rate mortgage to a 5/1 adjustable-rate mortgage lowers monthly payments and extends the life of the loan.
However, refinancing requires careful consideration. First, you must understand the benefits and drawbacks of refinancing. Second, you must weigh the costs associated with refinancing versus the savings you’d realize. Finally, you must consider the effect refinancing will have on your overall debt load.
Be Prepared to Negotiate
Negotiation is key when purchasing a home. When you go shopping for a home, you’ll likely encounter sellers who ask for too much money or demand unreasonable terms. To avoid getting taken advantage of, you should be prepared to negotiate. Start by asking yourself what you’re willing to give up in order to save money.