Laws to provide stable, suitable home financing created a category of loans and lending practices called "Qualified Mortgages." They provide guidance to help lenders provide loans that borrowers can repay successfully. Following the guidance and practices — and assessing each borrowers ability to repay—gives lenders additional legal protection. The Qualified Mortgage guidelines provide predictable and more-easily-understood loan features. They also rule out some loan terms and practices. Qualified mortgages cannot be: Interest-only loans Loans with terms >30 years "Negative Amortization" loans (increasing principal over time) Most forms of "balloon" loans with large payment partway into the loan period. These consistent practices help lenders and regulators provide consumers with objective guidance about reasonable debt. If you are buying a home, ask about your Qualified Mortgage options.

Beautiful, modern model homes and neighborhoods can make the job of comparing different builders and projects a challenge. Here are a few questions to help you. Ask everyone the same questions, like: How is the final price of a home in your project set, and when? Do you offer a warranty option? Can we have a copy of the warranty terms? How many different models are available? Can we see plans or brochures? Can I make changes and upgrades during construction? Until what stage? When do inspections take place in your construction schedule? Who would be supervising construction of our particular home? When is completion scheduled? What happens if there are delays? Also ask about other projects, and their history in this business: Are you insured? Licensed? How many other homes have you built? Where? Do you provide references, such as from prior buyers? Ask for written confirmation of things you consider to be key. Compare the answers from different projects, sales teams and builders. And consider involving a real estate buyers agent, or new-home cobroker, for professional advice.

Nearly all buyers of new-construction homes — 88%, according to a nation-wide survey in 2013 — involved a real estate agent in the transaction. While it may not be required, if you are considering or buying a new-construction home, you should consider it. Most new-home construction projects — particularly large developments — have sales staff to assist in the transaction. They are knowledgeable about the project, the home models, and incentives. But in contrast to a real estate buyers agent, their job is the project, not you. Times have changed; builders expect real estate agents, and frequently the commission for an agent is built in to their pricing. Agents help guide buyers to realistic choices and help them in the complex purchase process. Building a relationship with an agent, and building their knowledge about a development, can also lead more people to the builders project. If you do have an agent, make sure they are contractually committed to represent you in the process. If you do not have an agent, look for a buyers agent or new-home cobroker to help.

A builder can help make the home-purchase process easier and faster by making arrangements to have a lender on-hand who is already familiar with the project and/or models. The question the home buyer must answer for themselves is, is this "preferred lender" the best choice for them. The most effective way to do this is probably to obtain loan terms from other lenders. With multiple Loan Estimate forms in hand, you can easily compare apples-to-apples and see what advantages the preferred lender has to offer. In addition, you should be aware of current market conditions for transactions like yours. Compare all terms carefully; if in doubt, or if some aspect of a builders offer are only available with the preferred lender, ask for clarification in writing. Should you feel pressured toward one particular lender, ask for written confirmation that no parties are receiving monetary benefits from any other parties. That is illegal under RESPA (Real Estate Settlement Procedures Act) regulations! The desire to close quickly is natural, but make sure your long-term financial interest and home choices are not compromised for short-term speed. .

Do high-tension power lines have long-term health impacts? Everybody uses electrical energy, and power lines are required to carry it. Rumors and notions about possible effects from high-tension power lines have been around for quite some time. However, as this video reveals, according to the HUD – the US Department of Housing & Urban Development— there are no conclusive research findings verifying that direct exposure to power lines leads to higher circumstances of illness or disease.

Homeowners insurance is required to close the transaction. Start early to give yourself the best shot at saving costs here. Get quotes from several insurance providers. Compare insurance costs as part of comparing properties. For example, a newer brick home may have lower premiums than an older wood home. Location may affect insurance costs. Check on the proximity of fire hydrants and fire departments; closer may equal savings. Look for group protection through service organizations or alumni associations. Home purchase may be an excellent time to consolidate insurance and pocket savings. Covering home, auto and other insurance with the same company is frequently less expensive. Consider and shop deductible options in the process. Raising deductible may lower premiums, if you can handle the increased out-of-pocket consequences.

Knowing the property taxes that you will pay is a key fact in evaluating the cost of owning a home. The listing information on a property usually includes the prior years property taxes. If this information is not included, contact the local assessors office, or ask your real estate professional about obtaining the figure and documentation from the seller. Figures will change tax rates vary, so factor that into your budget. Remember that tax payments and mortgage interest are usually deductible from your Federal income taxes. Your real estate professional may have advice about additional tax liabilities or benefits for a particular property.

Deciding "older home or newer home" is a unique challenge for each buyer and place. Here are some general guidelines to think about. Home Age and Neighborhood Age. More-established neighborhoods with a higher average home age develop their own ambiance over time. Is that what you want? Property Tax Rates. An older home may have a lower tax rate; make sure to ask and compare. Maintenance. Homes require maintenance as they age, but you should assess what has already been done on an older home case-by-case. Energy efficiency is also a key concern; building standards have improved efficiency standards over time, so you may find newer homes to score higher on this key cost. Consider what you want to spend time on, and what you enjoy as well.