Is this a good offer. (loan, real estate, credit score, rate)

[darrell2525]

[SIZE=2]Lennar is offereing this great deal. The offering the following package for their new homes in inventory:
2.88% fixed for the 1st year
3.88% fiexd for the 2nd year
4.88% (5.50% APR) for 3 to 30 years fixed

And I want to know the PROS AND CONS of owning a new house vs a older home. The older home will be between 1 to 5 yrs old.

My wife and I was thinking it is better to move in older home because its much cheaper and more sq. ft. We did not want much maintence issues so we decide on a older home between 1 to 5 yrs. The houses we saw on har.com was much cheaper than new home, more bigger.

Please add to my list of PROS and CONS so I can make a good decision.

CONs of older home:
1. May have some damage.
2. It is used.

Pros of older home
1. Seller may have added extras to the house such as tile or wooden floor. Or good looking counter tops
2. Less cheaper than new house
3. More sq ft.
4. I can bargin with the seller for cheaper sale.

Cons of new house:
1. The builder (Lennar) may not do a good job
2. I will have to hire an inspector to cross-check lennar inspector
3. less sq ft and more money for buy new home
4. No extras unless I pay for it, like tile floor, and special coutner tops
5. Builder may use cheap material to build the house

Pros:
1.Its a new house
2. I get GE appliances with the house

My questions:
1. I am a 1st time buyer, what other pros and cons must I consider from new vs older home
2. Can a mortage loan broker offer a better deal than Lennar?
3. How much can I trust Lennar?
4. Is Lennar offering a good deal.
We were really thinking about older home because of more space and extras (tile, wooden floors, etc) but is this a good offer by the home builder.


Thanks for your help.
[/SIZE]

[TwiloMike]

What costs are associated with obtaining this deal?

[sean98125]

It sounds like the home builder is desperate to move product - where do you think they tried to reduce their costs as they were building?

New homes have problems, just like old homes do. Older homes have probably had their major problems addressed already. In a new home it's up to you to discover where the house is settling, where the builder made shortcuts, and what the yard drainage problems might be. Those things would already have been discovered and dealt with in older homes, and if they weren't dealt with the damage would be apparent to an inspector. Those problems aren't so obvious in a new home until it's been around for a while.

[golfgod]

A couple of points where I may disagree with you. BTW, I always buy used. Most "major" problems show up pretty quickly. I take it you're in Houston since you said you looked on har.

I can bargin with the seller for cheaper sale

Definitely seller will bargain. One reason that builders don't like to cut prices (the offer cheaper financing instead) is that will make recent buyers mad to see prices going down.

The builder (Lennar) may not do a good job

Lennar is the last builder I'd want

I will have to hire an inspector to cross-check lennar inspector

I get GE appliances with the house

GE appliances are NOT a plus. GE makes great aircraft engines and other things. "Large" appliances are not their specialty. At one time they may have been but among top brands they're considered lower rank-often by appliance people too. We remodeled our kitchen a year ago and the difference between GE and Jenn Air was nominal, maybe a couple of hundred $$.

Good luck

golfgod

[darrell2525]

Originally Posted by TwiloMike

What costs are associated with obtaining this deal?

The cost is a FHA loan (only 3% down) and a min requirment credit score of 580.

Does this answer your question?
Are mortage brokers offering this deal too.

Please advise,I am a 1st time home buyer.

[darrell2525]

Originally Posted by golfgod

A couple of points where I may disagree with you. BTW, I always buy used. Most "major" problems show up pretty quickly. I take it you're in Houston since you said you looked on har. golfgod

Why do you always buy used?

Yes, i live in Houston.

[darrell2525]

Originally Posted by sean98125

It sounds like the home builder is desperate to move product - where do you think they tried to reduce their costs as they were building?

New homes have problems, just like old homes do. Older homes have probably had their major problems addressed already. In a new home it's up to you to discover where the house is settling, where the builder made shortcuts, and what the yard drainage problems might be. Those things would already have been discovered and dealt with in older homes, and if they weren't dealt with the damage would be apparent to an inspector. Those problems aren't so obvious in a new home until it's been around for a while.

Thank you so much for your advice. Everything you said make good sense. I do not know these things because i had to live in apartment my entire life.

So, I think I will get a older house, less than 5 years old.

1. Should i get a real estate agent? I think I should, but I was using har.com and I can easily see the home I want, about $175k.

2. Should I get a mortage loan broker? I think so considering my bank will not shop hard for me.

Thanks for the help

[TwiloMike]

Originally Posted by darrell2525

The cost is a FHA loan (only 3% down) and a min requirment credit score of 580.

Does this answer your question?
Are mortage brokers offering this deal too.

Please advise,I am a 1st time home buyer.

I've never heard of an FHA loan with that payment structure. Just how much is the builder willing to pay in points to buy the rate down to such a teaser?

[SKB]

Originally Posted by darrell2525

Thank you so much for your advice. Everything you said make good sense. I do not know these things because i had to live in apartment my entire life.

So, I think I will get a older house, less than 5 years old.

1. Should i get a real estate agent? I think I should, but I was using har.com and I can easily see the home I want, about $175k.

2. Should I get a mortage loan broker? I think so considering my bank will not shop hard for me.

Thanks for the help

I wouldn't call a home less than five years old "older". I would say it is a newer home if it is less than 5 years old.

That is just me, the glass is half full.

[ajpacino]

sounds like a convertalbe loan there great.