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Financing Your New Home in Today's Market

It's all over the news: market experts predicting that the median price of U.S. homes will fall between 1 percent and 2 percent this year, the first such decline since 1950 when federal agencies began tracking such statistics.

No one's sure how far the decline of U.S. home prices will go, but the positive side to the news is that it has become a buyer's market. Locally the number of pre-existing homes on the market is increasing. But according to the Terre Haute Homebuilders Association, while construction of new homes in Terre Haute may have slowed somewhat, it has not come to a stop as it has in other areas of the state and nation.

Marsha Doan of the Homebuilders Association says Terre Haute is blessed in that the market has been strong for a long time, and now that new and expanded industries are bringing key employees in from other parts of the country, it seems that many people are choosing new homes over pre-existing ones. The lower cost of living in the area is contributing to the ability of new residents and established ones alike to choose a new home over a pre-existing one.

The recent challenge in the nation's credit market is also having an effect on home sales, which is actually more good news for people seeking to buy a home. According to Jack Tatom of Networks Financial Institute at Indiana State University, there is plenty of money available for borrowers who have saved up a down payment and maintained a good credit record.

Even though it is a turbulent time for the housing market, it presents opportunities for buyers to get more for their money if they do their homework before they begin the financing process. There are some general items that most lenders require: a credit application, current pay stubs, 1040 forms from the previous two years, and a copy of the deed to the property or a legal description. As the process moves forward, buyers should be prepared to obtain other information that may be needed to finish the approval.

Extremely important is obtaining correct estimates on the entire project. Not only does the price of the home and its features need to be determined, but also all the improvements to the property need to be considered so the figures provided to the lender are accurate. Improvements such as septics, power, water, driveways, garages, porches and any other items included in the financing need to have realistic figures associated with them. These improvements have an impact on the appraisal and can effect the terms of the loan.

Many variables will impact the length of the loan and the interest rate, as well as the type of financing program the buyer should select. A buyer's credit score, the amount of down payment (whether in land or cash), the length of time on the job, the amount of debt in relationship to income, and the length of residency in the area are just a few of the factors that are considered by a lender when determining a loan for approval.

One affordable option that many families find is open to them is a new manufactured home. At Premier Homes, we understand how important the decision to purchase a new home is, and we work hard every day to make the entire process as smooth as possible. The sales staff at Premier Homes is involved in financing many of the homes we sell. Premier has aligned itself with a number of local and national lenders to assist in obtaining competitive terms.

If you would like more information on finding the right manufactured home for you and your family, contact Premier Homes at (800) 875-8575 or email us at info@premiermfghomes.com.

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