When people buy a new home in Rio Grande Valley, they wonder what could possibly go wrong? The area is growing in leaps and bounds. A new home is completely fresh and without the wear and tear that occurs over time. Almost everything about it is covered by a warranty. How could new homes in Rio Grande Valley possibly come with unpleasant surprises?
Unfortunately, scores of home buyers have looked forward to moving in, only to find they didn’t end up with what they expected. Look out for these potential pitfalls before and during construction so you can experience all the excitement and none of the frustration.
Choosing the Wrong Lender
Sometimes home buyers don’t shop around when they choose a lender. When you buy new homes in Rio Grande Valley, you might apply for financing online, go through your bank or use the lender your builder recommends. That could be the best way to go, but you won’t know that for sure unless you carefully research your options.
By choosing the wrong lender, we don’t mean they’re out to get you. However, financial institutions aren’t there for pure altruism. They exist to make money. If you choose the wrong one, you could end up paying thousands more than you have to at closing and over the lifetime of your mortgage.
As we tell buyers, Ginnie Mae recommends first-time homeowners talk to several lenders before they decide which home loan to apply for formally. Talk to mortgage brokers, credit unions, savings and loans offices, banks and government lenders to see what’s available.
Government-backed loans often have low down payment options, but more strict requirements. Conventional loans are backed by banks, private lenders or other savings institutions and credit requirements vary. Lenders also typically expect buyers to put down a larger down payment than government-backed loans.
Whether you choose a fixed or adjustable rate mortgage also impacts the cost to you. A fixed rate loan has interest rates that never change. As the name implies, adjustable rate mortgages have interest rates that reset at regular intervals. If you choose an adjustable rate mortgage, be sure you understand how this could drastically change your monthly payment.
Ask about points, requirements and fees. Read the fine print. Make sure before you sign you’re getting the best possible value.
If it sounds like a lot of work, it is. WestWind Homes has highly trained investment advisers who can help you avoid unpleasant surprises. We have long-term relationships with some of the nation’s top mortgage companies and financial institutions. Make an appointment to talk with an expert and, if you choose, get pre-qualified.
Thinking Location Doesn’t Matter
Rio Grande Valley is a huge area. Land prices are much lower outside of town or in less desirable areas. You may reason you can afford more house if you spend less on land. Or, you might think the commute isn’t such a big deal when you take into account the cost difference.
For new homes in Rio Grande Valley, location is one of the most important factors for long-term value. It also makes a difference in how much you enjoy your home. If you build in a prime location, your home is instantly worth more than it would be if you built the same structure outside of town or in a less desirable neighborhood. Plus, that commute will wear you out faster than you think.
WestWind Homes builds in high-demand locations that are convenient to the best the area has to offer. Before we begin development we consider schools, shopping, dining, entertainment, outdoor opportunities and more. Our new homes in Rio Grande Valley are immediately in demand and they just gain value over time.
Even the best-laid plans run awry. When residents build new homes in Rio Grande Valley, sometimes they don’t budget for things that might go wrong. Not all homes come with landscaping. Sometimes problems increase the time to completion, so the cost creeps up. We can’t count the number of times a buyer thought they knew what they wanted, but changed their mind as the project took shape. We’ll always help make changes as affordable and feasible as possible, but changes cost money. If you underestimate contingencies by too much, you might not have enough room in your budget to get what you really want.
Talk to your builder about how you’ll handle cost changes. Make sure you plan ahead to avoid unpleasant surprises.
One of the benefits of working with WestWind Homes is our wealth of experience. We talk with homeowners ahead of time and ask probing questions that often help us point out additional costs they can expect.
Underestimating Upgrade Value
If you walked through one of our model homes and fell in love, go back through and identify what specifically spoke to you. Some upgrades are worth the cost, but only you can say which ones make a difference for you.
Where we see homeowners experience unpleasant surprises is when they talk themselves out of what they really want. If you want to upgrade to large tile in the kitchen or crown molding in your living area, now is the time to do it. Those things add value to your home. Plus, it will cost much more to make changes later than it will to plan for them during construction.
We want buyers to walk into new homes in Rio Grande Valley they fall in love with. Contact WestWind Homes to find out how we can help you make it happen.