Best Friend’s Advice

Recently, my friend called me to ask for my advice.  She lives several states away and wants to purchase a brand new home.  I was excited that she thought enough of me to ask.  (I haven’t spoke to her in over a year, so it isn’t like we talk all the time)  It got me thinking…. that would be a great topic for my blog. 

Today I will share with you the advice I gave my friend on selecting a builder.

1)  Are you purchasing a brand new home that is already built or or you going to have the home built for you?

Either way, check out the builder’s reputation.  Are they a member of the BBB, their local Home Builders Association (HBA) and/or the local chamber of commerce?   Call these organizations to find out if they are reputable.  How many homes a year do they build?  If it is just a couple, you may want to check out their qualifications.  If the builder belongs to their local HBA, that is a good sign that they are a professional, reputable builder.

2) Determine your top priorities:   Lowest price? Highest Quality?  Green Features?  Location?  Floor Plan?  Reputation?  Once you have narrowed down your search, if you are considering more than one builder be sure to compare apples to apples.  The lowest price may NOT be the best value. 

For example:  If you have two homes that you love, location is equally good, builders are both professional, but one has a lower price, it may not be the best value.  Consider these factors: 

Warranty:  Does the home come with a standard one year warranty or more?  What is included in that warranty?  Are there extra fees for particular services?

Ex.  We provide a 10 year warranty on all of our homes backed by RWC. 

 

Product quality:  Consider the quality of the items in the home which will be very expensive to replace; siding and windows.  Do they have a warranty?  What is the average lifespan of the product?  How energy efficient are the windows?

Foundations/basements:  The foundation is extremely important.  You shouldn’t have to worry about this element too much with a new home.  Just be sure to check out examples of your builder’s work for your own piece of mind. What is the system used to build the foundation?  Is it poured, block, or something else?  (If you are looking at existing it is vital you check the foundation.  It is very expensive to fix.  )  Is there a  drainage system in place in case of excess water runoff?  (Look for drain tile, sump pits and other dry basement systems)  Is the yard and the neighbors’ yard graded to allow for water runoff? 

(Continued in my next blog article )

Being Green

Green is all the rage!  You hear it in reference to just about every marketed product.  Just what does it mean to be “green”?  According to Wikipedia:  Green, along with environmentally friendly, eco-friendly and nature friendly, are synonyms used to refer to goods and services, laws, guidelines and policies considered to inflict minimal or no harm on the environment.^[1] "

Did you know there is no single international standard for environmentally friendly goods and services?  Beware when something is labeled as such, it could mean something different than what you think it should.

So what is a green home?  According to the U.S. Green Building Council’s Green Home guide there are many factors that make up a green home.  Some items to consider are:  location, size of home, building design, building materials, energy efficiency and landscaping.  

Let’s take a look at each of these measures.  Location: the development should not be located on an environmentally sensitive site like wetlands or endangered species habitat.  The development should be compact:  at least 6 homes per acre.

Size of Home:  The smaller the home is the less resources it will use.  In the case of green, smaller is better.

Building Design and Materials:  Is the home designed to use natural light sources? Does the outside have natural shading?  Are the materials recycled or environmentally friendly?

Energy Efficiency:  This covers everything from lighting to heating and cooling and appliances.

 Landscaping:  You should choose drought resistant plants for your yard as well as place shade trees strategically to provide cover for the concrete (driveways and patios) and for the windows.

These are just a few of the factors to look at when considering if a home is “green”.   The biggest consideration, however, should be what features are important to you?   Are you more concerned with saving money monthly with energy costs? Or is it more important that that the materials are recycled and environmentally friendly? 

Are you willing to pay more for these products just to know you have a “green” product?  If you are concerned about the overall price tag of your home, make sure to compare upfront cost vs. monthly savings to make sure it makes financial sense.

Hartland Homes’ homes meet many of these “green” standards.  All of our homes meet the energy star guidelines,

our developments meet the 6 per acre standard, and our homes are smaller and efficient by design.  However, if we do not currently employ the “green” factor that is most important to you, don’t worry, we will be glad to make the adjustment.   Call us today.  We can help you determine what green features you want in your new home and how to make it a reality.    402-477-6668

Home Buyers To Be Charged More By FHA After September 7th

FHA is raising its Mortgage Insurance Premium rates after September 7th, 2010. What does that mean to you? If you are planning on buying a home and do not qualify for VA (military) or have 5 to10% to put down so you can go conventional… you will pay more. About 99% of our customers buy their home with an FHA loan. It requires only 3.5% down, it has the highest income to debt ratios and is more lenient with credit history.

What is the Mortgage Insurance Premium (MIP)? MIP is what FHA charges the buyer in order to have a loan that is less than80% loan to value. This fee should cover FHA’s losses should the buyer default. (Not sure it was enough considering all the foreclosures) FHA is increasing their fees to cover their rising costs (defaults).

How it works: FHA charges an upfront MIP and a monthly MIP. Currently, the upfront premium is 2.25% of the loan amount. For example, on a $150,000 loan, the upfront fee is $3,375. This is added right into the loan (financed) so the buyer doesn’t have to come to the table with extra money. The monthly fee is .55% of the total financed amount. On an $150,000 loan, the monthly fee would be $70.00.

The new amounts will have a lower up front MIP but a higher monthly MIP resulting in a higher house payment. See table below:

Loan Amount	$150,000 today	$150,000 after 9/7/10
Up front MIP	2.25% = $3,375	1% = $1,500
Monthly MIP	.55% = $70	.90% = $114
Principal at 5.5%	$871	$860
Total Principal and MIP	$941	$974

I have not included real estate taxes and home owners insurance as these are not determined by FHA and won’t be affected. The difference is $33 more a month that the home buyer will be paying for the same loan. If you get a case number before September 7th, over 5 years you will save $1,980.00 (using this scenario).

So what can you do about it? Nothing if you wait until September 7th to purchase your home. You must have an FHA case number assigned to the property you are buying before September 7th. So, make sure you write a contract on a home and get into the loan company before September 7th. You do not have to close by that date. Call Hartland Homes today for more information. 402-477-6668

8/12/10 UPDATE **FHA has decided to postpone this change until October 4th!

Click here for more information on FHA.

Examples of payments and premiums are for illustration purposes only and are subject to human error.

Sizzling Summer Interest Rates!!!

---

 4.5% for excellent credit scores.

What does this mean????  Interest rates should not be this low.  Ask  a financial planner or a banker and you will see...these rates are being artificially held low.  What that means to you is that it WILL NOT LAST!  These interest rates will be going up soon.  You will probably never have another chance (for 20-30 years) to enjoy such cheap financing. 

Did you know that on a $150,000 home, the  difference between 4.5% and 5.5% interest is a whopping $91.50 more a month? 

If you are serious about buying a home, please do not wait until next year unless you want to pay $100 + a month more for the same home.  (prices of homes will rise too)

30-year mortgage rate drops to 39-year low

(Reuters) - Mortgage rates dropped in the past week, with 30-year fixed-rate loans tumbling to their lowest level in 39 years, according to a survey released on Thursday by Freddie Mac, the second-largest U.S. mortgage finance company.

Click here to read the rest of the story:  Reuters article

YOU Magazine - June 2010 - Great Deals in Housing But Also Potential Speed Bumps Ahead

"If you were offered the chance to buy dollars for a $.70 a piece, how many would you buy? When you compare today's home loan rates to the average in effect for the last 10 years, that is approximately what you are paying. And given lower home prices, there has never been a better opportunity to buy a home than today."

To read more from this month's YOU Magazine click on the link below:

YOU Magazine - June 2010 - Great Deals in Housing But Also Potential Speed Bumps Ahead

Remembering D-day this Memorial Weekend

Recently I had the privilege to visit America's cemetery in Normandy, France  honoring those who died on D-Day.  Thousands of American soldiers gave their lives that day.  Did you know that many drowned in the rough waters before they even made it to the beach? Seeing the area where the Americans stormed the beaches of Normandy both inspired and horrified me.   It horrified me to think how awful it must have been for the soldiers knowing they most likely would not come home.  It inspired me to see how these great Americans sacrificed so that we might have freedom.

How did they find the courage to leave the boat that day and every day after that?  The people who have given their lives for America’s freedom represent the incredible American spirit.  This spirit defines our country. 

Americans, along with the British, Canadians and some French,  freed the French in World War II.   Our soldiers don’t just protect Americans, they protect the world against tyranny, dictatorships and help fight for human rights.

Please take time this weekend to thank a veteran. 

Thank you veterans!!!!!

The pictures featured in this story are of the actual American cemetery at Omaha beach in France.

Lincoln Ne is #5 on Forbes list!

Check it out!
The Best Places For Business And Careers - Forbes.com

Armed Service Members Have Extra Year for Home Buyer Tax Credit

Story courtesy of the NAHB

The National Association of Home Builders (NAHB) wants members of the military, foreign service, and intelligence communities to know that they may have an additional year to buy a home and claim the home buyer tax credit, which expired for most Americans on April 30.

The law provides qualified service members who served on official extended duty outside of the United States for 90 days or more at any time between January 1, 2009, to April 30, 2010, another year to buy a home and claim the credit. They have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. Both the $8,000 first-time and $6,500 repeat home buyer tax credits are included in the rule.

“Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Michigan. “It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country.”

“Qualified service members” are defined as a member of the uniformed services of the United States military, a member of the Foreign Service of the United States, or an employee of the intelligence community.

The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they have to sell their home due to receiving government orders for extended duty service.

NAHB provides information on the home buyer tax credit, including eligibility requirements and links to home buying resources, on its consumer website www.FederalHousingTaxCredit.com.

For more information, please talk to a Hartland Homes agent today.  402-477-6668

Goodbye $8,000 Tax Credit! Now what?

So the $8,000 Tax Credit has expired and you didn’t find a home.  The good news is that now you can choose the perfect home for you with no time limitations! 

It is still a great time to buy a home!

1)  Low interest rates

2)  Low prices

3)  Save money annually on your income taxes  (itemize your tax return using property tax  and mortgage interest paid)

Additional Reasons to buy a brand new Hartland Home:

4)  You may qualify for an Impact Fee Rebate =that is a credit of up to $4,685 towards your down payment!!!

5)  We pay your closing costs = average savings of $2,500!

6)  Energy Efficient = saves you $$ every month on lower utility bills

7)  Lower house payment the first year because property taxes haven’t been fully assessed = saves you over $100 per month!

8)  10 year structural warranty, 20 year dry basement guarantee and the best warranty in town!

9)  It only takes 90 days to build a home built just for you.

10)  You haven’t found what you wanted in the existing market, why not build and get what you want?

www.hartlandhomes.com

402-477-6668