Are You
Ready to Build or Buy a New Home?
Sales of new one-family houses in November
2008 were at a seasonally adjusted annual rate of
407,000, according to estimates released jointly today
by the U.S. Census Bureau and the Department of Housing
and Urban Development. This is 2.9 percent (±13.9%)*
below the revised October of 419,000 and is 35.3 percent
(±11.4%) below the November 2007 estimate of
629,000.
The median sales price of new houses
sold in November 2008 was $220,400; the average sales
price was $287,500. The seasonally adjusted estimate
of new houses for sale at the end of November was
374,000. This represents a supply of 11.5 months at
the current sales rate.
New Home Sales Builder Reputation
Be sure to verify you are dealing with a reputable
new homes builder. We suggest checking with the areas
Better Business Bureau to see how many and the nature
of any BBB complaints filed against your prospective
new home builder.
After all, you certainly do not want a nightmare
caused by your new home builder such as the negative
issues reported at this consumer reports website regarding
Monterey
Homes - Meritage Homes Corporation.
If you rent the home you live in, the right planning
could enable you to buy a new home.
To discover your new home buying potential, calculate
your: income, Savings, Monthly expenses, and Debt.
These factors determine how big a home mortgage loan
you can afford and how buying a new home will affect
your monthly budget.
Income
Review all of your sources of income. You will need
money for a down payment and for closing costs. The
FHA and VA have mortgage programs that ask for smaller
down payments. Closing costs may sometimes be rolled
into the new home mortgage loan.
Answering these questions may also help you to estimate
your financial position.
- What is your average monthly income?
- Do you expect your income to remain level in the
near future?
- If not, do you expect it to increase or decrease?
Savings
Add up all your savings. Any money saved can help
you buy a new home. Your savings can be used for the down
payment and/or closing costs. You know your own saving
habits.
- What portion of your income are you saving now?
- Can you afford to put more money into savings?
Monthly Expenses
How much are you spending each month? You can expect
your monthly expenses to go up when you buy a new
home. Will you have enough money to pay the mortgage,
homeowner insurance and real estate property tax in
addition to your other housing expenses?
Debt
Review your current debt obligations. A home mortgage
lender will examine the ratio of your debt to your
income when deciding how much money to lend you. Consider
how additional debt from home loan payments, added
to your existing debt, will affect your lifestyle.
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by New Home Sales Organization.
All Rights Reserved.
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