Buying a new home is a lifelong goal for many people. It’s part of the American Dream to put down roots and have a place to call your own where you can personalize your living space, entertain family and friends, and just relax and unwind.
When you take steps to be prepared to buy a new home, and make sound decisions along the way, you can increase your chances of a successful homebuying experience and avoid common homebuying pitfalls. Let’s review some of the most common homebuying mistakes and the steps you can take to ensure your new homebuying experience is smooth and worry free.
You can make the best start on buying a home by getting pre-approved for a mortgage. The pre-approval process will give you a good idea of how much you can spend on a new home and keep you from overextending yourself. It is a good time to evaluate whether you are ready to purchase a home. There are many online home affordability calculators that will give you an idea of your homebuying budget. Remember, just because you’re pre-approved doesn’t guarantee you’re approved for a mortgage, but it puts you in a much stronger position to place an offer on a home.
Make sure you know your credit status before you apply for pre-qualification. Three major credit reporting companies, Equifax, Experian, and TransUnion, maintain reports on creditworthiness. You can review your credit report from each company at no cost every four months.
Read the reports in detail to determine if there are errors, indications of fraud, or old information. If incorrect information adversely affects your credit, you can file a dispute online with each of the three agencies. Make sure to remove any adverse information before you apply for pre-qualification.
When lenders prequalify you, they consider your income, expenses, credit rating, and work history. You may prequalify to buy a new home at the maximum level allowable with your income and significant obligations. However, you may not be comfortable with that size of payment.
If you know how much you can spend monthly on a home, a lender can work with you to determine your target price range. Committing to a mortgage amount above your price range can add financial stress to your new home purchase.
Of course, the new home you choose is a critical part of your decision. One of the things homebuyers often overlook, however, is the neighborhood and surrounding area. Yes, you will live in the house, and it needs to have enough space for your family, a workable floor plan, a design you love, and a yard for children or pets.
When you buy a new home, you choose not only the structure you’ll live in; you’re also selecting a neighborhood. Explore available open spaces, fitness amenities, and local entertainment options in the community. Weigh how the location supports work commutes and other activities. Explore schools in the area. When you find a neighborhood that fits your criteria, you can focus on finding or building the perfect home for your family.
At Harvest by Hillwood, we’ve created a warm, welcoming community built around activity and engagement. Harvest has plentiful open spaces, hike and bike trails, and common areas where residents can gather as a community, such as the Red Barn, the Splash, the Fit Barn, the Dog Park, Farmhouse Coffee & Treasures, and much more. And our award-winning lifestyle program offers more than 300 events and activities each year that allow our residents to get to know each other and have fun. It’s exactly what most homebuyers want in a neighborhood.
When you decide on a new construction home, choosing the right builder for the type of home you want is a critical step in the process. At Harvest, we offer newly constructed homes from a collection of respected DFW homebuilders. Each offers homes with a selection of floor plans, sizes, and designs to suit a variety of tastes.
Whether you’re looking for a townhome, a traditional family home, or a home on an oversized lot, you’ll find it at Harvest. Take a look at our homefinder tool, browse available homesites and designs, and find the home of your dreams.
When you buy an existing home of any age, it is critical to get a home inspection to learn about any problems that lurk below the surface. But should you get an inspection on a new home? The answer is yes. Not getting a home inspection is one of the top homebuying mistakes to avoid.
Hire an independent inspector to go through the home before your final walkthrough. The inspector is a professional who can spot and point out any issues so you can put them on your final punch list.
When estimating your budget for a new home, be sure to consider closing costs. They will average 2-5% of the loan amount. If this is not affordable, or if you do not have several months of income in the bank as a buffer for job loss or unexpected expenses, you may want to reconsider whether this is the time to purchase a new home.
The mortgage payment is only the beginning of the cost of homeownership. Other less apparent expenses to figure into your monthly bills are taxes, insurance, maintenance, and utilities. Counting these expenses into your monthly housing budget with room for inevitable cost escalation ensures that you are prepared for the total cost of homeownership. If these additional expenses would strain your finances, you might want to wait until you are able to build a cushion for these items into your home purchasing budget.
Most planned communities, like Harvest, have a governing body called a homeowner’s association (HOA). Everyone who lives in the community is automatically a member and must pay HOA dues. HOA dues are used to maintain common areas and amenities, pay for community activities, and to support other services. Part of the HOA’s job is to ensure all homeowners maintain their property according to community guidelines. Be sure to ask about the cost of HOA dues and include them in your housing budget.
Harvest HOA dues pay for the operation and upkeep of the marvelous array of amenities that enrich life in the community. This includes one-of-a-kind features like Harvest Farm, Mini Town Park, Barn Park, fitness facilities, multiple pools, and many more!
HOA dues at Harvest also pay for landscape maintenance in common areas of the community and the cost of basic TV and internet services (upgrades available) for residents.
When you’re ready to find your new home, make Harvest by Hillwood your last stop. Our community offers a location convenient to Denton, Fort Worth, and Dallas, great schools, gorgeous homes and a lifestyle that’s second to none. Stop by to tour our model homes today. Our new construction builders have available homes, and many are offering incentives, so now is a great time to buy!