When looking for your first home the options can be overwhelming. In this economy there is an added layer of uncertainty about future value, but there are still great opportunities for the first time home buyer. Existing listings, foreclosures, and bank owned properties to name a few.
When looking at houses you will need to approach the search in a few different ways. First as cliché as it sounds is location. Proximity work, good schools and family not only impact your emotional levels, but also impact your travel budget. Then there is imagination. As you look at these homes, start thinking of cost effective ways to add space (for those big ideas) and value (things that will make the house your “home” these can be updates or items related to increased functionality. Next is the cost of ownership. Every month you will be expect to handle the bills and if you do some research on the property you are considering you can take an awesome proactive approach.
We can help you determine if updating all the windows and doors will help reduce your heating
Sounds like a lot of lists and notes, right? Well we can help you there too. Simply complete the free registration and we will issue you a password to access your very own secure dashboard. We have loaded calculators and notes from the best construction and mortgage sources in the business. Don’t worry, you will not be inundated with contractor quote requests. We only provide contacts when you are ready. We follow a proven system to help you discover building. The resources here are designed to help you with the following:
- Educate you on the loan products available for your specific need
- Expose you to ideas and scenarios that you can consider
- Introduce you to prescreened and insured contractors and home builders
- Provide project planning tools focused on cost, loan, and future value.
There are many areas that can cost you money as a new homebuyer. Asking questions is key. Both from a negotiation standpoint and from a long term cost one too. As you check out the school districts and where the local parks are located, be equally as interested in the age of the furnace and all the HVAC components. As you make your offer you can deduct the part of all of the cost to replace an older furnace or A/C unit with a new energy efficient one. Mechanical item replacement is an allowable line item expense in your renovation mortgage, but since it may not add much value if the other is “working”, you will need to create that equity in the loan by reducing the price offered.
Asking the age of the windows can be a money saver too. You can roll the cost to replace into the loan. Exterior considerations are present as well. You want to check the roof, not only for leaks, but also for hail damage or weathering that can be a ticking meter waiting to cost you in repairs. When you are in the attic check to see that the level of insulation is adequate – ask to see the home inspection report and consider ordering one of your own.
Shorthand Checklist: Energy Efficient Home Renovation Projects
What are they? Allowable projects able to be funded in the first mortgage.
- New HVAC, furnace and/or water heater
- New Windows
- New Roof & Gutters
- Other Energy Saving projects
Why are they important? They protect your investment, make your home more comfortable & safe, and save you money. 43% of the average energy bill is for Heating & Cooling, 12% for Water Heating, 11% lighting, 9% computers & electronics, 9% appliances, 8% refrigeration, and 8% other
How do I do this? Ask for the inspection report, check out the with one of our inspectors, or ask a contractor friend to visit the property too. (bring your phone for some pics too)
Request your renovation loan planning guide here.
Ask a contractor a question here
Get pre-qualified for a renovation mortgage here
