How to Figure Out What You Want in a New Home

How to Figure Out What You Want in a New HomeFinding the right home that fits your qualifications and desires can be overwhelming, especially as a first-time homebuyer! With so many options,  how do you figure out which new home is right for you?

Here are some tips to help as you’re figuring out what you need and want your new home.

What does your heart desire?

Get the ball rolling by thinking about what would be in your dream home. Is it on a large lot in a quiet neighborhood? Is it a townhome closer to the city? How many bedrooms and bathrooms are there? Where is the master bedroom located? Put together a list of all the things that makes this house special to you?

Evaluate your current home

Walk through your home and take notes on what you like and what you wish your home had. Maybe you love how the kitchen is open to the living room but you didn’t have enough storage space. If you don’t like the layout, make sure your new home has a different one.

Here are some other factors to consider when coming up with your master list:

Location: While you can add a room or renovate the kitchen to your liking, you can’t change where your home is located. Take time to settle on the area you want to live in. This should be one you’re comfortable in and is close enough to what’s important to you: work, schools, shopping, recreation or entertainment options.

Size and type of home: Determine the size and type of home you need. How much space do you actually need? Your current (and future) family size impacts how much room you need. Do you need outdoor yard space for young children or pets? Do you want a single-family home or do you prefer a townhome? Do you want a two-story home on a large lot?  Your new home should be able to accommodate you today and into the foreseeable future.

Special features: You should also consider any special features you’ll need in your home. If you work remotely, a dedicated home office or space for an office will be a must have. Do you need a home that’s wheelchair accessible? An enclosed backyard?

Prioritize into needs and wants

Have your list ready? Now comes the most important part: prioritizing your master wish list into needs and wants. This will help you remain focused on finding the home that satisfies your needs; anything on your wants list is simply icing on the cake.

As you’re assigning your priorities, this is a good time to consider which features you’re willing to pay more for, like a shorter commute, and which you could live without, like a three-car garage. Its important to know what you’re willing to compromise on to find the right home that’s within your budget.

You want to make sure you find the best house for your family. Knowing what your new home needs to have before beginning your home search will save you time and help you find the right home sooner.

Now that you’ve figured out what you need and want in your next home, it’s time to go shopping! At Hayden Homes, we pride ourselves on building quality new homes. Whether you’re looking in Idaho, Oregon, or Washington, our team can help you move into a home that’s just right for you at any stage in life. We’re excited to work with you to find your dream home!

How Interest Rates Affect Mortgage Payments

How Interest Rates Affect Mortgage PaymentsOver the past year, many new homebuyers jumped into the market to lock in a historically low interest rate before they rise. Even though interest rates are low, even one percent can make a big difference! If you’ve been debating whether to buy now or wait, here are some things to consider.

Mortgage Basics

A mortgage is a secured loan used to purchase a home or other real estate property offered by banks, credit unions, or other financial institutions. Your mortgage payment consists of four main parts: principal (the total amount borrowed minus your down payment), interest rate (the amount the bank charges), taxes, and home insurance. You may need to pay private mortgage insurance is you put down less than 20% down.

If you want more information about mortgages, we deep dived on what exactly a home mortgage is in this post

There are two main types of mortgages: fixed and adjustable-rate. The type of loan you receive determines how your interest rate is calculated. Here’s how changes in interest rates can affect your mortgage payment.

Why Interest Rates Matter

Interest rates are the amount of money a bank charges you to borrow money and they directly affect the size of your mortgage payment. Higher interest rates mean higher mortgage payments and vice versa.

It’s important to remember that interest rates are compounded so you pay interest on the interest that’s accrued each month in addition to the principal balance! That’s why it pays to find the lowest possible mortgage rate.

How Much Can a Percentage Point Make on Your Mortgage?

One point may not sound like a lot but it is.

Let’s say you get a mortgage for $300,000 with a 30-year, fixed rate of 3.75%, this same loan will cost $500,270 with $200,270 in interest payments and a $1,390 mortgage payment.

If you get the same loan with a 4.75% interest rate, you’ll pay $563,789 in total over the life of your loan, with $263,789 going towards interest. Your monthly mortgage payment will be $1,566. This means you’re spending $63,519 more over the life of your loan!

Please note: this example is for illustrative purposes only. It does not include a down payment, taxes, insurance, or PMI. If you want numbers specific to your situation, please contact your lender.

When it comes to your mortgage, it pays to shop around. In short, mortgage rates matter – a lot! While a single percentage point may seem insignificant, it could end up being the difference of thousands of dollars over the life of your loan. This is why it’s worth shopping around to find a favorable mortgage loan, especially if you’re taking out a larger loan.

Finding the Perfect New Home

We offer affordable new homes that fit your needs at any stage in life. Our new home communities in Idaho, Oregon, and Washington are backed by our commitment to quality. Visit us online at Hayden-Homes.com to learn what makes a Hayden home the right new home for you.

Homebuying 101: What’s a Mortgage?

Just as your home is your largest asset, mortgages are the largest, longest-term loan you’ll apply for. Most people don’t have the funds to buy a home in cash so rely on mortgages to fund their home purchase. We have plenty of blog posts discussing how to save for and finance your home but what exactly is a mortgage and how do they work? In this post, we’ll cover the basics of what exactly is a home mortgage.

What’s a mortgage?

A mortgage is a secured loan used to purchase a home or other piece of real property. Mortgages are offered by banks, credit unions, and other financial institutions. The home serves as collateral; if the borrower doesn’t make their monthly payments and defaults on the loan, the lender can reclaim the home and sell it to recoup their costs. Once you repay your mortgage in full, you’ll be the outright owner of your home.

What’s included in a mortgage payment?

Your monthly mortgage payment is split into four main categories: principal, interest, taxes, and insurance. Here’s how each one works:

Principal: the total amount you borrowed from the lender (minus the down payment you provided). Principal can also refer to the amount left remaining on your loan balance. A portion of each monthly payment is applied to the principal, reducing the amount owed over time.

Interest: the amount the lender charges you to borrow the principal. Most of your monthly payment is applied towards interest at the beginning of your loan term, and then switching to reducing principal in the final years.

Taxes: your lender may collect your property taxes, saving each monthly payment in an escrow account and paying it on your behalf when it’s due. If your lender does not offer this service, you will be responsible for paying property taxes.

Insurance: most lenders require home insurance as a condition of getting your mortgage. Also called homeowner’s or property insurance, this covers your home in case it’s damaged or lost in a fire or natural disaster. If you had a down payment of less than 20% (unless you have a VA loan), you may also need to buy private mortgage insurance as well.

How long are mortgages?

The length of time you have to repay a mortgage is called a ‘term.’ There are two common loan terms: 15-year and 30-year. The most common term is 30 years. In fact, about 90% of homebuyers choose a 30-year, fixed-rate mortgage (more on that in a moment). 30-year terms allow you to have lower monthly mortgage payments. In contrast, 15-year terms allow you to pay off your mortgage faster but will higher monthly payments. We dive into the differences between 15-year and 30-year mortgages here.

What’s a fixed-rate or adjustable-rate mortgage?

There are two main types of mortgages: fixed-rate and adjustable-rate. These terms define how your interest rate is calculated.

Fixed-rate mortgages are just as they sound; the interest rate remains constant over the life of your loan. You will pay the same amount of interest each month until you pay off your loan.

Adjustable-rate mortgages (ARM) have variable interest rates. Typically, they begin with lower interest rates that slowly increase at set intervals of time over the life of your loan. This variability means you’ll be paying different mortgage payments over time.

What types of mortgages are available?

There are several types of loan programs you can choose from. Each program has their own eligibility and down payment options and allow you to choose your loan terms. Here are the most common programs (please check with each loan provider to learn more about eligibility requirements):

Conventional mortgages are the most common loan product. They’re managed the Federal Housing Finance Administration (FHFA) though commonly associated with Fannie Mae/Freddie Mac. These loans require a credit score of 620 or higher and a down payment of at least 3%.

FHA loans are insured by the Federal Housing Administration. FHA loans are popular with first-time homebuyers and allow borrowers with credit scores of at least 580 to put 3.5% down (borrowers with credit scores between 500 and 579 must put down at least 10%).

VA loans are administered by the U.S. Department of Veterans Affairs and are exclusive to eligible active-duty and retired military service members and surviving spouses. One of the main benefits of VA loans is there’s no down payment requirement and mortgage insurance is not required.

USDA loans are insured by the U.S. Department of Agriculture and are available for homebuyers in designated rural and suburban areas. There’s no down payment requirement and borrowers must meet income requirements.

The more you understand about mortgages, the better you’ll feel about finding the right option for your financial situation. At Hayden Homes, we want to make sure that you secure the financing option that’s right for you and your situation. This post should give you the foundation you need to confidently speak with a lender to find the right loan program for you.

We’re excited to work with you to find your dream home. Whether you’re looking in Idaho, Oregon, or Washington, our team can help you move into a home that’s just right for you at any stage in life. Contact us today.

How to Save for a House and a Wedding at the Same Time

How to Save for a House and a Wedding at the Same TimeGetting married and buying a house are two huge financial milestones that often occur around the same time. These milestones often compete with each other but it doesn’t have to come down to ‘down payment or dream wedding.’ With a good financial plan, you can turn your dreams of a wedding and a new home into a reality. Here’s how.

Set your priorities

Your first task is figuring where you stand together. Have an honest conversation with your partner to discuss what your greatest priorities are and how they relate to the way you allocate your money. It’s okay if your priorities don’t match; what’s important is discussing what compromises you’re willing to make to achieve both goals. It can be difficult to save for a big wedding and a home at the same time so you may need to adjust your expectations.

Create a budget

Settled on your priorities? Great! Now it’s time to create a realistic budget for both the house and wedding. Review your combined incomes and expenses to determine how much extra income you have (if you haven’t already, having a regular monthly budget is helpful). Take a hard look at your discretionary spending and see where you can cut back.

Once you know how much you can save each month, you need to figure out how much you need to save for each event.

Saving for a house: determine how much home you can afford. Check out home prices in your areas and consider getting prequalified from a lender. Prequalification is a basic review of your creditworthiness to give you an estimated amount of how much you can be qualified to borrow. It’s not binding but it’s a good starting point. In addition to getting prequalified, it’s smart to review your actual budget to determine how much you’re comfortable borrowing.

We have some additional resources on how to budget for a new home and saving for a down payment.

Saving for a wedding: determine who will be contributing to the wedding. Most couples pay for the wedding themselves but sometimes their families may cover some of the costs. The next step is discussing the type of wedding you want. Do you want a big, elaborate party, an intimate elopement, or something in between? How many guests do you plan on having? The number of guests will have a big impact on your total wedding budget.

You can get a little creative to save some additional money on your wedding:

  • reduce the guest list
  • choose a more affordable venue
  • choose an off-season date or get married on a Sunday
  • use in-season flowers and find ways to repurpose flowers (i.e. use wedding ceremony flowers to decorate the reception site)

Keep savings separate

Create separate savings accounts for the wedding and your down payment. This will reduce the temptation to dip into the account and use funds earmarked for house for the wedding and vice versa. Having separate accounts also makes it easier to keep track of your progress and of your spending.

Avoid taking on new debt

Having a strong credit score is key to getting the best possible mortgage package. In order to land a favorable interest rate, you’ll want to avoid taking on new debt, especially if you’re paying for a wedding at the same time. If you need to put some wedding costs on a credit card, be sure to pay them off each month to keep your credit utilization rate and debt-to-income ratio low.

Adjust your timeline

Your budget for your wedding and down payment will determine your timeline. Break down the total amounts into monthly savings goals to figure out a workable timeline. If you’re feeling pinched saving for both events, consider pushing your timeline back to give yourself additional time to save and more breathing room.

This is an exciting moment in your life! Setting your priorities and creating a plan will help you start off your new life on the right foot.

Find your happily ever after in a new Hayden home. We’re excited to help you find the home that’s just right for you. Visit us online to learn more about our homes and new home communities in Idaho, Oregon, and Washington.

Going Solo on Buying a Home – Tips for Buying a Home by Yourself

Going solo - tips for buying a home by yourselfMarried couples are the most common homebuyers. It makes sense because it’s typically easier to afford a down payment and qualify for a larger home loan with two income streams. But that doesn’t mean you have to wait until you’ve walked down the aisle before becoming a homeowner!

There’s been an increase in single buyers making their way into the housing market. With the way the current market is, we may see more single people considering buying a home. Are you thinking of buying a home on your own? Here’s everything you’ll need to know to make your homeowner dreams a reality.

Identify your long-term goals

Be prepared to answer the question, “Why do you want to buy a home?” Are you tired of renting? Do you want to put down roots and eventually start a family? Are you looking for a long-term investment?

The home you ultimately buy will vary based on your current and future goals. Take a look at your lifestyle and your future goals to determine if buying a home makes sense. If you want to travel a lot and move around, buying may not be the best option right now.

There’s a lot of freedom and stability that comes with owning a home but there’s also a lot of responsibility as well. Be sure you’re ready before taking this big step.

Be realistic about your budget

Your budget will be your guiding force through the buying process; it’s important that you’re honest about your spending and what you can afford. Review your current income and monthly expenses to determine how much you can afford. Mortgage calculators can provide an estimated price range that fits your budget.

There are additional costs to homeownership than just the mortgage payment; you’ll also need to cover insurance, property taxes, and maintenance so include those costs when calculating your budget.

You can practice paying a mortgage each month to see if you can swing the payment. Set aside the difference between your estimate mortgage payment and your rent in your savings. This will give you a good idea if you can afford to buy a home and gives you some savings to start with!

Strengthen your finances

The key for single buyers is understanding their budget, income, and the stability of that income. Single buyers must show lenders that they’re capable of qualifying for and making the monthly mortgage payments on a single income. Taking time to strengthen your financial history will make you the best possible application, showing lenders you’re more than capable of managing this loan. You can accomplish this by saving money for a down payment, paying off debt, and improving your credit score.

Bulk up your emergency fund

As mentioned earlier, homeowners are responsible for every aspect of owning a home, including maintenance and repairs. Build your emergency fund to cover unexpected housing expenses. Having about three to six months’ worth of mortgage payments and living expenses is a good benchmark to achieve. Be sure to replenish it as you use it!

Make a priority list

One of the benefits of buying a home by yourself is not having to compromise with a partner. You can pick the house you love and want. But you still want to create a list the features you need in your home: size, number of bedrooms and bathrooms, location, and any other important features you need (consider things that would be prohibitively expensive to add later or will affect your quality of life). Having a priority list will keep you focused on finding the right home and not get carried away by a home with nonessential features like walk-in closets or granite countertops. This home may not be your forever home and that’s okay! Buy what you can afford and need in this season of your life.

Buying a home as a single person can be intimidating but is also rewarding. Hopefully you feel more empowered to buy your own home. When you’re ready, visit us at Hayden-Homes.com to learn more about our new homes in Oregon, Washington, and Idaho. You can use our mortgage calculator to determine what you can afford, view our plans, and reserve your dream home online.

Why is Home Insurance Important?

Why is homeowners insurance importantYour home is more than just a roof over your head. It’s filled with your belongings, memories, and comforts. So, it makes sense to do everything you can to protect this invaluable possession. That’s what makes home insurance a smart investment; it provides a sense of security of knowing your home and belongings are protected.

Here’s why it’s important to have home insurance.

It may be required for your mortgage

You aren’t legally required to have home insurance but your lender may require it as a condition for securing a mortgage. Why is this? Even though you paid a down payment, your lender is on the hook for the majority of the purchase until you pay off the mortgage. Since they’re responsible for so much, having you get home insurance gives them the security in knowing their asset in protected. Think of it this way: if your home is damaged or lost in a fire or natural disaster, both you and your lender will lose out if you don’t have home insurance!

Your lender will determine the minimum amount of coverage you need.

It protects your most valuable asset

For most people, their home is their most valuable asset. Home insurance protects that investment by making it possible to pay for needed repairs or replacement caused by damage or loss due to a covered event. Your home insurance policy covers damage to your home and attached structures, like a deck, garage, or porch in addition to any standalone structures on your property, like a fence or shed.

Replaces your belongings

In addition to providing protection to your home, your belongings, like furniture, clothes, jewelry, electronics, etc., are covered as well if they’re stolen or damaged. This includes the belongings that are lost in another location!

Provides liability coverage

Another benefit of home insurance is the liability coverage it provides. Sometimes accidents happen and your policy may step in to cover costs if you, or a family member (including pets) damage another person’s property or injuring someone or if someone is injured on your property. This may include covering costs for repairs, legal fees, or medical bills.

Covers living expenses

If you’ve experienced damage to your home and need to stay somewhere else while it’s being repaired, your insurance policy may cover a portion of your living expenses.

Have questions? Talk to an insurance professional

Insurance is not a one-size-fits-all solution. Your coverage needs may vary so work with a trusted insurance broker to discuss your unique situation. They will be able to customize a policy that works best to protect your investment. They will also be able to explain what’s covered, policy limits, how to file a claim and more.

When it comes to protecting your home, insurance is one of the best things to buy that you hope you never have to use.

If you’re thinking about buying a home in the Northwest, we have beautiful new homes for sale in Washington, Oregon, and Idaho you’ll be sure to love.  Reach out to us today!

Common New Homebuyer Mistakes and How to Avoid Them

Essential Tips for First Time HomebuyersWe know that when you are buying your very first home, it’s an exciting and emotional time. We also know it can be stressful. There are a few things you can do to help alleviate some of these feelings and stress by educating yourself on these common mistakes, we see first time homebuyers make.

First, we’ll cover a few financial mistakes and ways to avoid them.

  1. NOT CHECKING ON YOUR CREDIT REPORT AND FIXING ERRORS THAT EXIST

This is one of the most important mistakes that is easily avoidable and can make a huge impact how much you can afford. If you don’t work to build your credit, and you don’t check your credit score regularly, your score may be lower than you expect. This can affect the interest rates you are eligible for when you’re working on getting a loan. Even the difference of a few percentage points on a mortgage loan can cost or save you thousands of dollars in the long run.

How to avoid this mistake: Checking your score regularly (you can request a free credit report each year from each of the three main credit bureaus) can help you identify any errors that arise and ensure you get them taken care of and off your credit report quickly. This will not only give you peace of mind but, will help you build a good credit score.

  1. NOT LOOKING INTO HOME LOAN OPTIONS SUCH AS VA, FHA AND USDA HOME LOAN PROGRAMS

If you’re in the market for your first home, there are quite a few things to learn. One of which, is there are multiple home loan options to choose from. These include VA loans, available for veterans, as well as Federal (FHA) loans and several others. For many first-time homebuyers, finding ways to minimize your down payment may be important, and some of the government programs make it easy to buy a home with zero or a minimal amount down.

How to avoid this mistake: Take some time to lean about the various loan programs and determine what your goals are prior to selecting a specific loan program. We have a blog that covers each loan type in more detail to help determine which home loan type is right for you. Be sure you discuss these options with your loan officer as they will be able to assist you in making the right decision.

  1. USING YOUR CREDIT BEFORE THE SALE IS FINAL

This is an important one, and one that you may not have thought about. The period between when you apply for your mortgage and when you close your home is critical. You’ll want to leave your credit alone if possible.

Why? A lender’s decision to give you a mortgage is based on your debt-to-income ratio as well as your credit score. Each time you apply for, or use your credit card, your score takes a minor hit and how much income you have compared to your total credit (debt-to-income ratio) decreases. Which isn’t good from the lender’s perspective, when they are deciding whether to give you a mortgage or not.

How to avoid this mistake: Don’t make any large purchases or use your credit cards while you’re in the process of getting approved for a home loan.

  1. BITING OFF MORE THAN YOU CAN CHEW (FINANCIALLY)

Given the high demand for homes and the growing prices in many markets in which we build, this can be tough. However, it’s important to understand and really dive into how much house you can afford. If not, you could end up looking at houses that you can’t afford or visiting homes that are below your optimal price level.

For many first-time homebuyers, it’s important to buy a home and get a mortgage with a comfortable monthly payment. Sometimes it’s a good idea to aim low.

How to avoid this mistake: Use the mortgage affordability calculator on our website to help give you a sense of the price range that is affordable to you, what’s a stretch and what’s aggressive.

Next, here are a few common mistakes we see once you own your home and how to avoid them.

  1. NOT CONDUCTING ROUTINE MAINTENANCE

On the plus side, you’re considering purchasing a new home, which means you will have significantly less maintenance to do on your home than if you were purchasing a resale home. However, even new homes need a little TLC to help keep them in their best shape. This includes changing filters regularly, preparing your home for seasonal changes, and staying on top of routine maintenance.  This is the best way to ensure small problems don’t turn into major repairs.

How to avoid this mistake: Not sure what to do or when? Visit the home maintenance page on our website for videos and seasonal home maintenance checklists.

  1. WANTING TO MAKE MAJOR RENOVATIONS TOO QUICKLY

When you buy a new home, this is something you won’t have to worry about. However, in the event you do want to make some changes, as tempting as it might be to make immediate changes, doing so could be a decision you end up regretting.

How to avoid this mistake: Live in your house for a few months to get a better feeling of what you like and what you don’t. Then determine what are your priorities and come up with a plan and budget before making any major changes.

In conclusion, while there may be other common mistakes out there, these are a few of the top mistakes we see people making and how best to avoid them.  If you’re in the market for a new home or have additional questions, our team of highly educated and trained sales professionals can help. Contact us today to learn how you can turn your dreams of homeownership into reality!

How to Save for a New Home While Renting

How to Save for a New Home While RentingAre you currently renting but dream of owning your own home? You’re not alone! There are a lot of benefits of owning your own home but it can feel overwhelming trying to figure out how to save.

How do renters make the leap to home ownership? While the answer depends on each individual person, you can use these general tips to create a plan that can work for your situation.

Determine how much you need to save

The first step to saving is knowing what your target number is. There are a lot of costs involved in buying home, one of the largest being the down payment. You may have heard that you need a 20% down payment but that isn’t required. Depending on the type of mortgage you receive, you may be able to buy a home with as little as 3.5%*.

Explore our mortgage calculator to play with some numbers and figure out how much of a down payment you may want to save. Mortgage calculators are a great way to estimate how much your monthly mortgage payments can be and how your down payment can affect the amount.

Review your budget

You can’t plan for the future without knowing where you’re at now. Once you’ve set your target savings amount, its time to review your budget to see where your money is currently going and identify areas you can cut back.

It can sometimes feel impossible to save money without feeling deprived but by looking at your budget, you may be able to find ways to save money while still enjoying your daily coffee shop visit. If you’ve never created a budget before, the 50/30/20 budget plan is an easy place to start.

Set a realistic savings goal

Keep your ambition in check when creating a savings goal. You may want to fast track your nest egg and set aside a large amount each month, but if you find it difficult to consistently set aside that large amount, you may end up more discouraged. Instead, choose a sustainable savings amount you know you can meet each month. It may mean being a renter a little longer but your finances and well-being will be in a much better state.

Reduce spending

Find realistic ways to cut back on spending and discretionary purchases. While going without heat during the winter may save you plenty of money, trying to survive a Northwestern winter without heat is miserable! Instead, consider opting out of cable to a streaming service. You can look for an affordable apartment or take on a roommate to help with the costs. Take a close look at your expenses and see if you’re paying for services you no longer use. Cancel the service and reroute that money towards your savings!

Pay down debt

One of the best ways to free up money for savings is dealing with high-interest debt like credit cards. Find a repayment plan that helps you tackle your debt as quickly as possible. Not only does paying debt increase cash flow, it also raises your credit score and balances your debt-to-income ratio, two things mortgage lenders use to determine your loan eligibility.

Save windfalls

Unexpected money is always a treat so funnel those windfalls like tax returns, bonuses, or cash gifts towards your down payment fund instead of spending it. Every little bit helps and shortens your waiting time. If you get a raise, stomp out lifestyle creep by depositing the extra money into your savings and continue to live off your old income level.

Automate your savings

Make saving easy by setting up automatic transfers into your savings account so you’re not tempted to spend your hard-saved money.

Scale back on large expenses

It may be necessary to scale back on large expenses while saving for a home. Instead of taking big vacations or giving elaborate holiday gifts, find ways to cut back on those expenses. Depending on how much you spend on vacations, consider either taking shorter and more affordable trips or skipping one for the cause. Likewise, instead of giving extravagant and expensive gifts, stick to a budget.

Research down payment assistance programs

Down payment assistance programs are available to help first-time home buyers secure grants or low-interest loans. These programs are available at the federal, state, and city level so program qualifications and requirements vary. Check with the state housing authority to find out more.

Start saving for a down payment today!

Creating a solid savings plan will make home ownership is possible and within reach, even when you’re renting. These tips will allow you to successfully save money while still enjoying life.

Once you’ve hit your down payment savings goal, visit us to learn more about our homes. Hayden Homes builds new single-family homes in Idaho, Oregon, and Washington for every stage of life. We can’t wait to welcome you home!

Discover the Benefits of Homeownership

DISCOVER THE BENEFITS OF HOMEOWNERSHIPFor many, homeownership is the pinnacle of the American Dream. It’s a milestone we look forward too even with all of the responsibilities that are associated with owning your own home. However, there are plenty of benefits that come along with it! If you’re renting, or in the market for a new home and you’re wondering what are the benefits of homeownership, here are some of the benefits you can plan for when you own a home.

It’s generally a good investment

Owning a home has always been described as a savvy financial investment since it’s one of the main ways of accumulating wealth, as long as you purchase a home you can afford. As your property value increases over time, you set yourself to get a substantial return when its time to sell.

Build equity

Equity is what you can sell your home for minus what you owe. You own a little more of your home with each mortgage payment, decreasing the amount you owe and increasing your equity. There are two ways to build equity, usually at the same time:

  1. Reducing how much you owe and
  2. Increasing your home’s value, whether through home improvements or just waiting it out.

Enjoy tax benefits

Homeowners enjoy a number of tax breaks, most notably deducting mortgage interest and property tax payments (the latter if you itemize). You may also be able to deduct some closing cost expenses the first year you own your home. Another handy tax benefit comes when you sell: if your home has been your primary residence for more than two years, you’ll be exempt from capital gains taxes up to $250,000 ($500,000 if married filing jointly) when you sell.

Predictable housing costs

Unlike renters, home owners will know their monthly mortgage payments will stay relatively the same, especially if you have a fixed rate mortgage. You won’t have to worry about increasing rent potentially pricing you out of your home and neighborhood.

Create the home you want

Owning your own home means you can create the home you’ve always wanted. You can own pets without the costly pet rent or deposit, paint rooms whatever color you want, change the flooring or hardware, make updates. The possibilities are endless when you no longer have to get permission or change everything back when it’s time to move.

Privacy

Living in a detached home gives you the privacy you don’t get in an apartment. No more dealing with thin walls and noisy neighbors stomping around above you.

For some, experiencing the feeling of accomplishment that comes with owning a home is the ultimate goal; to have a place to create new memories, enjoy celebrations, and share life with family and friends. Simply put, there’s no place like home!

We’re ready to help whenever you’re ready to experience the benefits of homeownership! We build new homes for every stage in life in Oregon, Washington, and Idaho. Contact us to get started with building your own brand new home!

From Dreams to Beams – Part 1: What’s True When Building New?

We are excited to present the first part from our series called, From Dreams to Beams, What’s True When Building New – where we discuss what’s true when building a new home and explain our new home building process. In this first part, of the series, we explain what to expect when build a new home with Hayden Homes and provide answers to some of our most commonly asked questions.

Q: What is the Hayden Homes building process?

  • It is our goal to make the building process as easy and streamlined as possible. Each community offers a number of floorplans that we are able to personalize to you. Whether you need space for an office, play room or work out area, we have plans to fit your needs.
  • From there, our Project Manager will then prepare and submits plans and specs to the City building department after the Purchase and Sale Agreement is written.
    • This typically takes a few weeks to receive back depending on where you are building your new home.

Q: Is there anything Hayden Homes requires at time of contract?

  • We ask for a deposit at time of contract, however, by purchasing a new construction home, it affords you more time to save for a down payment and closing costs prior to the house being completed.

Q: What types of appointments can someone expect during this process?

  • You’ll experience several different appointments and weekly updates from your on-site agent periodically throughout the build. Either done on-site or by phone.
  • This includes:
    • Pre-Construction Meetings:
      • This meeting allows us to align expectations with you, to prepare you for the construction process, and covers the most important construction details of your new home.
    • Pre-Drywall Meetings:
      • Your home is now in framing and your electrical and plumbing is typically in. We will take you on a tour of every room in your home and discuss its progress. At this appointment, we will walk through the interior and exterior, review the structure and systems behind the walls of your new home

Q: During these appointments, where you tour your new home under construction, who is typically attending?

  • During the home tours, it will be you, your Community Manager, Project Manager, as well as if you have a Realtor, Agent, they would be there as well.

Q: At what point should I get a pre-approval?

  • We will need to have it prior to writing a Purchase and Sale Agreement.
  • However, it is nice to have done in advance, so you know what you’re comfortable with and can expect for a monthly payment.

Q: In regard to Lenders, what should you expect? Will the lender reach out to the homebuyer or will they be contacting our Community Managers directly?

  • On your pre-approval letter, your loan officer’s information will be on that letter. We will ensure that we CC them when emailing your regarding all of the milestones of the build of your new home. This allows for them to be informed of the progress of your home as you are.

Q: Does Hayden Homes do any inspections throughout the build process?

  • We strive to provide the highest quality new home, through our comprehensive, over 300-point Inspections we are committed to providing a quality home.
    • Each Hayden Home undergoes several Quality Inspections as well as a third-party verification that your home was built right the first time.
      • The homebuyer is also able to have the home inspected, at your own cost, prior to the new home orientation.
    • For extra peace of mind, we provide a comprehensive one-year warranty.
  • Prior to your home closing, we will do a New Home Orientation
    • This will be in an in-person appointment with your Community Manager, Project Manager and Customer Service Manager.
    • In addition to showing you the best ways to maintain and protect your investment, we will explain all the features and benefits of your new home and ensure you are aware of all the warranties.
  • Key Turn Over: on closing day, we will schedule a special appointment to deliver the keys to your new home

Q: At what point is someone is able to choose and select colors for their new home.

  • After the Purchase and Sale Agreement, your Community Manager will schedule a time for you to come in and choose your colors for your new home. This happens usually within 14-days of writing your contract.
  • Each of our model homes, has a designated design center that allows you to personalize structural features, select your color palette, and choose finishes to make this home uniquely yours.
  • We have worked with an interior designer who created color packages that can help people get started with their selections and makes the process really fun and easy!

Q: How long does it take from writing your Purchase and Sale Agreement to receiving the keys to my new home?

  • For example, in South Washington, it takes anywhere from 100 – 140 days from when we receive permits back from the City. This varies by region, please reach out to a Community Manager in your region to find out how long this process takes in your area of interest.
  • Weather and the different municipalities, do play a factor in our build time as well.
  • We are committed to staying in communication with you, to explain the build times from the beginning, and of course providing updates along the way.

Q: Am I able to go into my new home at any time during the build and conduct my own tours? 

  • You may feel like you don’t want to be a bother to us… but our customers are never a bother to us. We love interacting and being with you through this customer journey.
  • For your safety, since your home is being built in a live job site, we request that you contact us prior to going out to the home to ensure you have the appropriate safety (hart hats) and we can be there with you.
  • We know this is an exciting time for buyers, and we don’t mind setting up appointments to ensure your safety.

Q: Why Hayden Homes? What makes Hayden Homes different than other new home builders, in the market?

  • When you buy a Hayden Home, you will see and experience our commitment to quality.
  • You will work with a team who stands by their work and enjoy a simple home-buying process that is unlike any other in the market.
  • Our customer service is one of a kind, and we offer a 1-year warranty.

Q: What if I don’t want to go into a model home, is there a resource I could use to price out my house?

  • The Design Your Home feature on our website, allows you to personalize your floor plan of choice with the options and colors.

It is important to us that our homebuyers are informed about the home building process. If you have any additional questions, we would love to hear from you and help get those questions answered. Contact us today with any additional questions and to get started with building your own brand new home!