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The Pros and Cons of buying new VS Pre-Owned

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The Pros and Cons of buying new VS Pre-OwnedBuying a home is a significant investment, and one of the most important decisions to make when buying a home is whether to purchase a new or pre-owned property. Here are some pros and cons of each option:

Pros of buying a new home:

Customization: With a new home, you have the ability to customize and personalize the space to your liking, including choosing finishes, colors, and layouts.

Energy Efficiency: New homes often come with energy-efficient features, such as double-pane windows, modern insulation, and energy-saving appliances, which can save you money on utility bills.

Warranty: New homes usually come with a warranty that covers defects and repairs for a certain period of time.

Low Maintenance: Since everything in a new home is brand new, there is less need for repairs and maintenance in the early years.

Cons of buying a new home:

Cost: New homes are often more expensive than pre-owned homes due to the cost of land and construction materials.

Location: New homes are often built in new developments, which may be further away from established neighborhoods, schools, and other amenities.

Lack of Character: New homes may lack the charm and character of older homes, which may have unique architectural details and historic features.

Pros of buying a pre-owned home:

Affordability: Pre-owned homes are often less expensive than new homes, especially if they require some updates or renovations.

Established Neighborhoods: Pre-owned homes are often located in established neighborhoods with mature trees and amenities like parks, schools, and shops.

Character: Pre-owned homes often have unique features, such as original hardwood floors, fireplaces, and architectural details, that give them character and charm.

Cons of buying a pre-owned home:

Repairs and Maintenance: Pre-owned homes may require more repairs and maintenance, especially if they are older and have not been well-maintained.

Lack of Customization: Pre-owned homes may not be as customizable as new homes, and you may have to live with features that you do not like.

Energy Efficiency: Pre-owned homes may not have the same level of energy efficiency as new homes, which can result in higher utility bills.

Ultimately, the decision to buy a new or pre-owned home depends on your priorities, budget, and personal preferences. It is important to consider all factors and work with a reputable real estate agent to find the right home for you.

Legal Documents You Need When Buying a House

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Legal Documents You Need When Buying a HouseBuying a house can be an exciting but complex process that involves many legal requirements.

You will need to provide several documents to your lender and the seller. The specific documents required may vary depending on the lender and the type of loan you are applying for, but here are some of the most common documents you may need:

Proof of Income: This may include pay stubs, W-2 forms, and tax returns from the past two years.

Bank Statements: You will need to provide bank statements for the past two to three months to show your savings and checking account balances.

Credit Report: Your lender will obtain your credit report to assess your creditworthiness and determine your interest rate.

Employment Verification: Your lender may contact your employer to verify your employment and income.

Loan Application: This is the first step in the mortgage process, and it will require you to provide detailed information about your income, assets, and debts.

Pre-approval Letter: Once you have submitted your loan application, you may receive a pre-approval letter from your lender, which will state the amount of money you are qualified to borrow.

Loan Estimate: This document provides an estimate of the closing costs associated with your mortgage, as well as the interest rate, monthly payment, and other details about the loan.

Closing Disclosure: This document is provided to you three days before closing and includes a detailed breakdown of all the costs associated with your mortgage, including the interest rate, monthly payment, and closing costs.

Identification: You will need to provide a government-issued ID, such as a driver’s license or passport.

Purchase Agreement: This is a legally binding contract between you and the seller that outlines the terms of the sale, including the purchase price, closing date, and contingencies.

Mortgage Documents: If you are financing your home purchase, you will need to sign several mortgage documents, including a promissory note and a mortgage.

Deed: The deed is a legal document that transfers ownership of the property from the seller to the buyer.

Title Report: A title report is a document that shows the history of ownership of the property and any liens or other encumbrances that may affect the title.

Homeowner’s Insurance Policy: You will need to purchase a homeowner’s insurance policy to protect your investment in the property.

It is important to compile and review these documents carefully before submitting them to your lender. It is also wise to seek the advice of a real estate attorney or other qualified professional if you have any questions or concerns.

What’s Ahead For Mortgage Rates This Week – June 19, 2023

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What's Ahead For Mortgage Rates This Week - June 19, 2023Last week’s scheduled economic reports included readings on inflation, the Fed’s Federal Open Market Committee meeting, and Fed Chair Jerome Powell’s press conference. Weekly readings on mortgage rates and jobless claims were also published.

Fed Leaves Key Rate Range Unchanged

Federal Reserve policymakers left the Fed’s current interest rate range unchanged at 5.00 to 5.25 percent; the Fed decision was announced after a scheduled meeting of the Fed’s Open Market Committee ended on Wednesday. Factors contributing to the  FOMC policymakers’  decision included the cumulative effects of tightening monetary policy, lags between changing monetary policy and any impact on the economy, along with inflation and global and domestic economic developments.

The Committee reasserted its commitment to returning the inflation rate to its two-percent goal. Factors considered by FOMC Committee members include readings on labor markets, inflationary pressures and expectations, along with domestic and global economic and financial developments.

Inflation Pace Eases in May

The federal government reported slower inflation during May. The Consumer Price Index posted month-to-month inflationary growth of 0.10 percent from April to May; this reading matched expectations and was lower than April’s reading of 0.40 percent month-to-month. Core inflation, which excludes volatile food and fuel sectors, matched expectations and was unchanged from April’s month-to-month reading of 0.40 percent growth. Core inflation rose by 5.30 percent year-over-year and matched expectations but was lower than April’s year-over-year core inflation reading of 5.50 percent growth.

Mortgage Rates Fall; Weekly Jobless Claims Unchanged

Freddie Mac reported lower average mortgage rates as rates for 30-year fixed-rate mortgages fell by two basis points to 6.69 percent. Rates for 15-year fixed-rate mortgages rose by three basis points to an average rate of 6.10 percent. Jobless claims held steady with 262,000 new claims filed, which exceeded the expected reading of 245,000 initial claims and matched the previous week’s reading.

The University of  Michigan’s Consumer sentiment survey improved in June with an index reading of 63.9, which surpassed the expected reading of 60.8 and May’s index reading of 59.2.  Readings over 50 indicate that most consumers have a positive outlook on current economic conditions.

What’s Ahead

This week’s scheduled economic reporting includes readings on home builder confidence, housing starts,  and sales of previously-owned homes. Weekly readings on mortgage rates and jobless claims will also be released.

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