5 Tips from Home Owners to First-Time Home Buyers

I put a quick message out on Facebook asking home owners what tips they would give to a first-time home buyer. They came up with some great advice!

Here are 5 tips to keep in mind when purchasing your first home:

1. Meet with a lender to see what you qualify for before you start shopping. This is step number one. -Dallas Jensen

2. Think about lights! Where would you natural try to flip a light switch, and where would you want any extra lights? Under the stairs? In a closet? Extra lighting in the bathrooms and kitchen? -Miranda Price

3. Shop around and do your homework. Every builder has a different style. Also, make sure the layout of the rooms will work for you. -Melissa Briggs

4. (Think about) Life style, what kind of neighbors do you want? -Loralee Miller

5. Create a "WISH LIST" of pictures that your ideal home would look like. Identify your personal style this way by finding common traits then use the Design Studio to find ways of recreating the look you like within your budget. This is what I did and my house turned out EXACTLY how I wanted it!!! -Sara McArthur

So enjoy the process of building your new home and don't forget to ask veteran home owners for advice along the way! Visit www.mcarthurhomes.com for more information on new homes in Utah.

3 Reasons Why NOW Might be the Best Time to Buy

A recent article sights low interest rates, soon-to-expire Federal Tax Credits and low home prices (possibly rising) as 3 great reasons to consider buying a home now. The article, by Jim Gallagher, suggests that now could be an ideal time for first-time home buyers and move-up buyers. From RISMEDIA.com:

If you have a good job and good credit, the next few months might be a good time to go house hunting. Fence-sitters take the risk that Congress may let a rich tax credit expire, and that interest rates may rise. Buyers and sellers should consider the following factors as they consider jumping into the housing market.

Mortgage rates are blissfully low, and that may not last.  Read more...

The home buyer tax credit expires on April 30, 2010 and no one knows if Congress will renew it a second time. Read more...

There are indications that home prices are near a bottom in some areas and may actually be rising a bit. Read more...

 Interested in finding a new home? View floor plans and quick move-in homes by McArthur Homes.

Building a New Home- Part 1

After working in the home building industry for many years I've noticed that first time (and even veteran) home owners can get confused by all of the deadlines, deposits and decisions going on in a relatively short period of time. So, here's a quick primer of what to expect when purchasing a new home:

1. Choose your Home and Neighborhood

First you must sift through all of the available homes out there to find a builder, neighborhood and floorplan that fit your family's needs. Many home owners these days are starting their search online, then visiting a few neighborhoods in their area of interest. Look for a builder with excellent customer satisfaction ratings who responds to your questions promptly and accurately. Once you've decided on a builder and a neighborhood, you can choose a floorplan and home site that fit what you are looking for in a new home.



2. Writing the Agreement

This is the first big step, and sometimes the scariest for first time home owners. The builder's sales associate should review this agreement with you completely and make sure all of your questions are answered. The main points of the agreement outline which home you'll be building and where, the price, deadlines for completing selections and making deposits, and general disclosures from the builder.
At this time you will also pay an Earnest Money deposit. This is a smaller deposit of $250-1000 depending on the builder and the size of your new home. Many builders will make this a refundable deposit, giving you a few days to be sure of your decision. Others require a non-refundable deposit. Make sure you know which you are paying.

3. Apply for a Loan

Once your signed Agreement is in place, you can apply for a loan and receive a Good Faith Estimate. This will let you know exactly how much loan you can qualify for and what your closing costs will be. (Of course, it's always a good idea to talk with a loan officer before signing your agreement, so that you have a good estimate of how much you can afford.)

4. Design Decisions

For many new home owners, choosing interior and exterior finishes is their favorite part of the process. One of the best things about owning a new home is that you can pick finishes to suit your budget and personalize your new home. Look for a builder who features a state-of-the-art new home design studio with professional design consultants and clear pricing information. You should be able to visit the design studio several times to choose finishes such as paint, countertops, cabinets and flooring. As long as your home is not yet under construction, you should have about 25 days to finalize those decisions.

5. Home Start Meeting

Also known as a pre-construction meeting, this is a final review of your plans and decisions for your home. Make sure you get answers to all of your questions before construction begins.

6. Construction Deposit

This is the final step before construction can begin on your home. A construction deposit is due, generally in the amount of 3-10% of your total purchase price. Most builders will require you to pay this about 30 days after you first sign your agreement. This deposit is non-refundable, meaning that if you don't close on your home, the builder will keep your deposit as damages. However, when you do close on your home this deposit is credited to you and can be used for your down payment.

Now it's time for the exciting construction phase of your new home process! I'll write more about what to expect during construction in a later post. In the meantime, please share this with any friends or family who may be building a new home in the future.

You can also visit the McArthur Homes website for an in-depth look at our building process.

Love at Home

I recently heard this adorable Valentine's Day story from two of our McArthur home owners, Matt & Melissa. Last February, their home was under construction and this is what Melissa said about it on her blog,

Our house has the stucco and rock on now and is primed and ready for paint. It is so fun to watch everything we have picked out come together in real life! We go down at least once a week and just walk around in awe of how fast it seems to be coming together! While we have been EXTREMELY blessed to have such a beautiful home to live in (with the best roomies in the world-my parents) we can't wait to get into our house.  

That Valentine's Day her husband planned a creative surprise for Melissa. They were both so excited about their new home, that he decided they should have a romantic Valentine's breakfast there. Matt even decorated the table with confetti, ribbon and romantic candlelight! Talk about husband of the year!

We hope these two wonderful homeowners enjoy Valentine's Day this year in their beautiful new home!

The new Good Faith Estimate

Recently, there have been many changes in the financing world. One big change for those looking to purchase a home is the new Good Faith Estimate. The changes were set up to standardize the information you receive when applying for a loan and to make it easier for borrowers to compare lenders. What you should know is that there are 6 pieces of information that you will need to give a lender before receiving a Good Faith Estimate. The big change is that you now need a Property Address and Estimated Value of Property. This means that you need to have chosen a home BEFORE receiving a Good Faith Estimate from a lender. Check out the other requirements listed below:

Elements of an application:


o Borrower’s name

o Borrower’s monthly income

o Borrower’s social security number to obtain credit report

o Property address

o Estimated value of property

o Loan amount
*Must have ALL six pieces of information before issuing GFE

For more information on financing changes including those to the Good Faith Estimate, you can contact one of McArthur Homes' preferred lenders.

Fun & Easy Paneling Project for your New Home

Last weekend I tackled a quick home improvement project in my dining room and since then I've gotten tons of positive comments on the look. It was so easy and inexpensive to do, I decided to share the details here for those who want to create the same "paneling" look in their new home.

SUPPLIES & TOOLS
1X4 MDF, it took me about 15 pieces (each 16' long) to do my 11'X11' dining room

White paint that matches your trim, I used KWAL HHW 3090

An optional accent paint color to go above the paneling

Saw (a power miter saw will save you time but you could saw each piece the old fashioned way)

Nail gun

Caulk

Paint brushes and rollers


PLANNING
1. First decide how high you want the paneling to go. It usually looks best to go 1/3 or 2/3 up the wall. For my 9' ceilings, I took my paneling up to a 6' height.

2. Next you have to determine how wide to space your boards. I suggest measuring your focal or main wall then dividing that by 4, 5, 6... depending on how long it is. Keep in mind that you will lose about 3/4" on each side at the corners, so first subtract that from your total length.  For my main wall I did 5 sections that were each just over 25". It is most important that your main wall looks well proportioned, but you will also want to measure your other walls to see how the panels will lay out all the way around the room. Irregularly shaped rooms may require some creativity or a little give and take on spacing to make everything work.

3. Before beginning any cutting, painting or nailing, draw your room to scale or lightly sketch the panel locations directly on your walls. This will save you time in the long run and help you identify any difficult spots like outlets, windows etc and how they will intersect with your work.

CREATING THE LOOK

1. If you are using an accent color above the paneling paint this now. Mark a line or put up painters tape all the way around the room about 2" lower than the top of where your paneling will be. Don't worry about being too neat as the boards will cover the line.

2. The first board you cut and install will run horizontally right above your existing baseboards (NOTE: You can do this a fancier way, by removing the baseboards and installing your paneling "behind" the baseboard. I found this to be too much work and very complicated, so this is my simple version.) Measure so that the board runs continuously from corner to corner. Check that the board is snug to the baseboard and level before nailing it securely in place.

3. Next do your other base horizontal pieces. When you measure now, each board will not run completely to the wall, instead it will meet with another board. Just measure from the first board to the next corner and so on.

4. Once all of your base pieces are installed you can start with the top horizontal pieces. Start with your main wall and measure the length of the wall at whatever height you have determined for your paneling (mine was 6'). Don't assume that your top piece will be the same as the base piece you already installed, walls are often slightly tilted or bowed. You may need an assistant to help you hold your piece level as you nail it in place. Continue around the room until you have a complete horizontal band.

5. Now it's time to install your vertical "paneling" pieces. DO NOT assume that they will all be the same length. Measure each piece carefully, starting with the corner pieces. For a finished look, I installed two boards at each corner. The first board should be installed a little less than 3/4" from the wall. Double check that it is plumb (perfectly vertical) with a level before nailing. Install the next piece so that they meet and create a corner. There may be some small gaps, but nothing that can't be filled easily with a little caulk.

6. Once all of your corners are in place double check the spacing you have planned for your other vertical pieces. Measure each one carefully and install them at your predetermined locations. When measuring distances between each board it is easier to measure from the left side of the board to where the left side of the next board will be (or do this with the right sides) instead of trying to find the center of each board.

Ta da! You've finished the installation. Now there's just a few more steps until your room looks fresh and complete.

7. Caulk completely around the edges of your paneling, anywhere there is a joint between two boards and wherever a board meets the wall.

8. Paint the wall and paneling white to match your trim. You can use a brush to get the corners and a roller for everything else, or for a really finished look, use a spray gun. Just be sure to mask and tape off anything you don't want painted. Hopefully you have a spouse or friend to help with the painting, you will probably need several coats and it can get tedious!

After the paint has dried, relax and enjoy your work. Or maybe plan a dinner party or get together to show off your new project!

I'd love to see your results on this or any fun home improvement project. You can email me at kristi@mcarthurhomes.com to show off your work or ask questions along the way. And if you find this post helpful or inspirational, please pass it along to your friends and family using the "Share" button at the top of the blog. Thanks!

Thinking about a short sale?

With sales up and standing inventory down, there seem to be a lot less short sale and foreclosure houses out there these days (thank goodness!), but I still hear some people say they just want to find "a great deal on a short sale." I've heard enough horror stories to know that finding a quality home and getting a good deal are two things that don't necessarily go along with finding a short sale. If you are considering putting yourself through this, please read through this letter we received from Dan Eerkes, a local Realtor. The letter is long, but the lesson is a good one if you're out looking for a new home.

In September of 2008, I took my clients, second time home buyers, out into a market saturated by short sales.  The clients were looking forward to taking advantage of many distressed properties on the market in Southern Salt Lake County and Northern Utah County.  The clients, after reading countless articles and ads about buying shorts, were looking to buy a lot of house for a big discount. As a Realtor of 5-years, I knew that making offers on short sales and actually having one accepted are two different things.  However, my clients were certain that given the amount of properties available, at least one of them would work out. 

We viewed over 40-properties in September alone.  Most were an immediate disappointment to the buyers, as they were in typical pre-foreclosure condition...basically trashed.   The looks on my buyer's faces told the story as we walked into home after home with dirty carpets, gaping holes in the drywall, broken cabinet doors, and all in need of updating.  Its very hard for a client to envision themselves living in someone else's abandoned and run-down property.

We continued into October of 2008, finding just enough homes that would work, to write several offers a week.  For an agent, it was the typical drill; Call the list agent, ask about the status of the short, possibly get a call back, write offer, submit offer, and get no response unless you bugged the listing agent over and over.  Usually you were routed to a processor who told you nothing of value.  This resulted in some pretty low spirits for my buyers.  They just couldn't see ever getting a home, especially one listed on a short. Unfortunately, the homes in their sub-$250k price range were mainly all listed as shorts.  During 2-months of looking, we wrote offers on 12 homes, and received one call back from an agent who instructed us to bring our highest and best offer in November.

Fortunately, I had seen a listing on the MLS for new builds in T.G. Meadows.  While waiting for a build job to be completed was not my client's first option, the continual letdowns and endless waiting for responses to offers opened the door of thought for them to consider building a home.  On the first visit to the McArthur model home, just the standard finishes and amenities in the home, immediately caught the eye of my clients. The thought of building a new home in their price range, in the area  they needed to live in was something I don't think they thought was possible!  Even better, the home would be theirs from the start, not someone else's failed attempt at home ownership.  It took only one more visit to look at the new subdivision and well-planned homes for my clients to lock in a lot, and write an offer to have McArthur build them a home.

The McArthur sales team made the process smooth, quick, and efficient. My clients went into the building phase, happy, and confident they were getting everything they wanted when they initially started on the home search.  I just wish we had walked into the McArthur model home before the short sale march of depression we endured for two months!!!

Best Regards,

Dan Eerkes

KE Capital Services

801-548-6116

Click here if you are interested in more information on the new McArthur homes mentioned in the letter.

What do the new FHA changes mean to you?

Have you heard about the upcoming FHA changes involving mortgage insurance premiums and required FICO scores? These changes could make it more difficult to qualify for a mortgage in the future. They could also cost you $1000 or more if you don't act quickly!

Click here for up-to-date information on these changes and other news regarding new homes.

If you are considering purchasing a new home, talk to your mortgage provider right away about what these changes mean to you.

If it's good enough for a rhino...

Although there are thousands of innovative products and fancy new dream home ideas at the International Builders Show 2010, my favorite thing so far has involved a Black Rhino named Ricko. If you are planning on building a new home or remodeling, I'd check Ricko out.

I guess I should explain a bit more. Mohawk launched an experiment involving their SmartStrand carpet. For 14 days Ricko the Rhino lived in a special new space outfitted with SmartStrand carpet. Check out the challenge page to see Ricko play, eat, stomp and yes, poop, all over the carpet.

I saw a piece of the carpet first hand and it looked pretty scary. The dirt and grime looked much worse than anything my two-year old could create. However, there was an adjacent part of the sample showing the carpet after it was cleaned with water. It looked brand new!

I'm not in any way paid my Mohawk, but I am so glad that I recently put SmartStrand carpet in my new home and glad we offer this awesome product to our new home buyers at McArthur Homes.

Maintenance Must-Dos for New Homeowners

Here are some great tips from Realtor.com to keep your new home in great condition.

Our maintenance checklist was compiled with the help of Lou Manfredini, Ace Hardware’s home improvement spokesperson and star of the “Mr. Fix-It” show on Chicago’s WGN-AM radio, and Frank Lesh, president of the American Society of Home Inspectors and head of his own home inspection company, Home Sweet Home Inspection Co., in Indian Head Park, Ill.

• Change your furnace filters monthly. “It’s so easy to do but so critical,” says Lesh. Clogged filters decrease furnace efficiency and can cause breakdowns.

• Drain your water heater at least once a year. Sediment will drain out along with the water from the water tank. Removing sediment can prolong the heater’s useful life.

• Clean the coils. If you have baseboard heating units that use hot water, clear dust from the coils inside the units to maximize heating efficiency. Clean dust whenever you see it accumulating. If you have a hot water boiler/furnace, you should also oil the pump inside the furnace twice a year, says Lesh. Look for the three spots on the pump designated for oiling.

• Check your circuits. Test the performance of the circuit breakers in your electrical circuit box twice a year by flipping them off and back on. If you have a circuit that keeps shutting off with normal daily electrical use, call an electrician. A faulty circuit breaker could indicate a short in the wiring inside your walls.

• Watch out for drips. Check under sinks periodically to look for leaks or water stains that might indicate leaks. Catching a small problem early can prevent water damage. Use a plunger to clean out sinks and tubs whenever water doesn’t drain normally.

• Be aware of life spans. Water heaters, furnaces, roofs, and other key components of your home should be replaced before they fail, based on their average useful lives. Here’s a general ballpark of the life span for key components:
• • Exterior house paint: 5-10 years
  • Furnace: 15-50 years
  • Roof: 13-15 years
  • Water heater: 7-15 years
  • Wood deck staining: 4-7 years

• Keep the wet out. Water is a major enemy of your house. Check each season for signs of water damage to your home. Flashing, the metal pieces used to seal the areas between roofs and chimneys and around doors and windows, are especially vulnerable to damage by wind or age. Loose flashing can let water seep under a roof or inside walls, which in turn can cause mold.

• Get to the bottom of things. Check your home’s foundation for cracks or gaps that could let in water or varmints. Also look at the ground around your house. As homes age, they often sink slightly below the surrounding ground. This settling lets water puddle against the foundation and possibly damage it, notes Manfredini. Doing major landscaping work also can cause changes to the ground’s pitch that let water flow toward the house.

• Look up. Chimneys take a great deal of weather abuse. Visually inspect them each year for signs of loose mortar or loose or missing bricks. Have the insides of chimneys cleaned every two to three years. Also check your roof for loose shingles or dangling gutters.

For more trouble shooting tips check out McArthur Homes Warranty Information.