Nashville New Homes: Mortgage Costs to Rise – Soon.

Please don’t be surprised.  You have heard all the news that “Home Affordability is at a peak.”   If you still don’t believe it, keep waiting…… and pay more as a result. 

Those that have aspirations to own their first home, change their lifestyle with another home, or purchase a vacation/future retirement home have a great opportunity RIGHT NOW to get just a bit more for quite a bit less!

Here is one increase that is definite.  On FHA loans, MMIP (Monthly Mortgage Insurance Premiums) will increase by .25% on new loan files initiated after April 18, 2011.   An active loan file is considered to be one that has a “FHA case number” assigned to it.  If your new loan file has a case number before April 18, you are fine.  If it doesn’t, you will pay more.

 How much more?  It depends on the home you buy.  For example, if you purchase a $165,000 home and do not have a “case number” before April 18th, your payment will be $34 more each month after the increase.  That is not the end of the world, but it is $34 each month, and you must qualify for that additional amount too!  

If you contract to purchase now, and begin the loan process, you can purchase approximately $5000 more home than you will be able to if you wait.  And THAT is assuming that interest rates remain the same.  Bets anyone?

Here is the full scoop:

http://www.quickenloans.com/mortgage-news/fha-loan-requirements

Keep in mind that you do not have to actually close on your new home by April 18th to take advantage of the lower premiums.  All you need is an accepted contract and a loan in process.  Consult a mortgage professional for more information.  If you don’t have one in mind, give Chris Meagher at Ole South Financial a call, 615.898.7152.  Take advantage of the “peak affordability” today!

In the meantime, visit www.OleSouth.com.  We define “affordability” in new homes all over Middle Tennessee.

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: New Home or older home? You decide.

Which in the Nashville area is better to buy?   A brand new home, or an older home?   Thats a good question and the answer really depends on who you ask.   Better yet, just ask yourself!  

Let’s compare…

New Homes

  • Everything is new, clean and fresh. 
  • Everything that is man-made has a useful life.  In your new home, you get to start the useful life clock!  Before you need a new roof, your hair color will have probably changed and you will be well on your way to retirement.  You will not be replacing corroded water and sewer lines in your lifetime.  The list goes on.
  • In a new home, depending on the stage of construction, you have the flexibility to personalize your home with your own choices!
  • There are many life styles and floor plans to choose from, all in the same location.  Decide where you want to live and then decide what you want your new home to be, not the other way around.
  • Stay healthier and safer in a new home.   You don’t have to worry about lead-based paints.  You don’t have to worry about what may be looming in the HVAC ductwork.  You don’t have to think twice about what may be in that carpeting.  Your home meets all the latest building codes.
  • A new home is certainly more energy efficient, which leaves you more money to enjoy life with.   Remember, you just can’t beat fun!
  • A new home comes with a warranty.  Many of the mechanical systems carry long term warranties in addition to the builder’s warranty.
  • You are the “first link” in the equity chain.  You get first dibs!
  • Your new trees are not as tall as your new home, eliminating the chore of gutter cleaning for many years.  You will have great fun showing pictures from the cruise you took while your old-home friends were cleaning gutters.

Older, Resale Homes

  • If you like to spend vast amounts of money on tools, an older home may be just for you. 
  • You can enjoy working on your house while your friends are playing golf, boating, fishing, hunting, watching ball games, or traveling.
  • You are not the “first link” in the equity chain.  Others have come before you. 
  • An older home may not comply with the latest codes, and may not be eligible for FHA financing.  That may not be a problem for you, but it could be a problem when you want to sell.  Not everyone has 20% to put down these days.
  • Buyers tend to have more negotiation power with resale homes than new homes.  Just like they do with used cars.  Remember, there are probably issues that you don’t even know about waiting to be fixed.
  • The older home may be in a neighborhood without protective covenants.  “Terrific!” you may say.  Until your neighbor parks a mobile home in the back yard for a brother-in-law to live in, who happens to work on old trucks.

 Those of you that prefer older homes, please do not take offense with this satirical comparison.  I know that a newer home is not for everybody… just the people that want more fun out of life and do not want their second job to be at home!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, www.OleSouth.com, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee