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10 Tips for Building or Buying Your First Home

June 9, 2017

You’ve decided you want to buy and/or build your first home—congratulations! Yet if you’re feeling a little overwhelmed or unsure about where to go next, don’t worry. We recently offered 10 tips for buying or building your first home as part of our “Learn, Build, Live” series, which we broadcast live on Facebook once a month. If you missed the episode, we’ve recapped the 10 tips below to give you a checklist that will help you more easily and efficiently navigate the buying and building process. 10. Determine if home ownership is right for you at this time. There are several benefits to home ownership, including more control over your living space, the freedom to personalize your home, the ability to have the pet you want and more privacy and security. 9. Understand the financial benefits of home ownership. According to Trulia, it’s cheaper to buy than it is to rent in 100 of the country’s large metro areas by an average of 37.7%. Additional benefits include the stability of fixed mortgage payments, as compared to fluctuating rent amounts, and the ability to use the equity in your home as a financial resource at a later point in time. 8. Know your credit score. This is a statistical number that ranges from 300 to 850 and depicts a person’s creditworthiness. The higher the score, the more financially trustworthy that person is considered. 7. Know your facts. A number of mortgage myths continue to persist, and you’ve likely heard them. For example, you don’t necessarily need excellent or good credit to get a home loan. Loans like the FHA, USDA and VA are designed specifically for buyers with less than perfect credit. Additionally, you don’t need to put 20% down on a home purchase. FHA loans, for example, require 3.5%, while conventional loans require 5%. Other loans, like USDA, can be 100% financed for qualifying buyers, requiring no down payment. 6. Get pre-approved for a home loan. This is a critical step because it equips you with the financial information you need to understand what you can buy. Pre-approval is determined by a variety of factors, including the four C’s:

• Capacity (current and future ability to make payments)
• Capital/Capital Reserve (money, savings and investments)
• Collateral (the home you want to purchase)
• Credit (your history of paying bills and other debts on time)

One additional note? Don’t hesitate to shop around for a lender before you seek pre-approval. You may notice that many builders, like Inspired Homes, work with a preferred lender, someone that has a proven track record of responsiveness, accessibility and great customer service. 5. Select a trusted builder. Building a home is, well, a big deal! And that’s why it’s important to select a trusted builder that won’t just build the home of your dreams, but also be your partner and guide throughout the process. Kevin Lau, Community Manager at Kensington Farms, recommends asking a builder about the materials they use, as well as about the life expectancy of exterior materials like roof and siding. You’ll also want to ask the builder about build time and communication expectations. It’s typical to hear from your builder at least once a week to provide you updates and other pertinent project information as the construction process is underway. Be sure, too, to ask about warranties, which will help ensure post-closing customer service and availability. 4. Decide where you want to live. You know that favorite real estate saying, “Location, location, location?” It’s popular for a reason! Deciding where you’re going to build your home is just as important as choosing a builder and a floor plan. Take time to learn about a new home community, including school district ratings and what’s nearby, like shopping, dining, services, arts, recreation and hospitals. Also, does the community offer any amenities? And if so, are there any associated fees? 3. Tour builder welcome centers and model homes. Most communities and builders offer welcome centers and model homes that prospective buyers can tour to learn more about a builder, floor plans and a community. While you’re there, take note of your first impression. Is the staff helpful and knowledgeable? What do you think of the model home’s construction? 2. Examine the floor plans. Do they include the latest and greatest designs? And does the builder use a professional interior designer? It’s a good idea to find out more about who’s involved in the building process. Ideally, it’s more efficient to have a single point of contact, rather than having to chase down several people for answers and updates. 1. Visit an Inspired Homes sales center. If you have lingering questions about the buying or building process, we’d love to help. Inspired Homes has sales centers in communities around the Kansas City metro, including Kensington Farms in Lee’s Summit, Huntford in Olathe, Kessler Ridge at New Longview in Lee’s Summit and Vista at the Reserve in Lenexa. Customer satisfaction is our top priority, and we’d love to help in any way we can. If you’d like additional information about any of the tips we just mentioned, feel free to watch the full recap of “Learn, Build, Live,” episode 3: If you haven’t already, be sure to like us on Facebook and stay tuned to our blog for information, resources and tips on home buying, building and ownership. After all, as Melanie Osterhaus, our Vice President of Marketing and Communications, so eloquently stated in this last episode, “With Inspired Homes, we feel like we’re family, and our new homebuyers are family, too, if it’s their first home or last home. At the end of the day, we’re family and we take care of each other.” Welcome to the Inspired Homes family. How can we help?