When You Dream

With the large number of foreclosed homes on today’s market, homebuyers are considering them for their housing needs, often due to below-market pricing.  While saving upwards of 25% off the market price of a home can sound very enticing…are the risks worth the rewards?

In the end, if you are not a risk taker, and would prefer peace of mind on this significant investment, not only is it still a great time to buy a home, it is a great time to buy a NEW HOME.  The rewards of building or buying a new home are evident when you look at the facts.  NEW HOMES are protected by workmanship, material and structural warranties, protecting you from large out-of-pocket expenses after purchasing.  NEW HOMES are available for immediate occupancy or in a timeframe that is conducive to your moving schedule, and are available in a variety of designs, sizes and locations, giving you many choices.  NEW HOMES are often available with Special Incentive Programs, making it more affordable for your to own a new home in many instances.  NEW HOMES are open for you to make them your own.  Why live in someone else’s dream home, when you can live in your own?  NEW HOMES are more energy efficient, saving you money and helping the environment.  

Foreclosures can come with many risks.  You are purchasing the property as is.  Often times, when a previous owner is unable to meet the financial obligations of a mortgage, they are also unable to meet the financial obligations of maintaining their property altogether.  Buying a new or resale home requires full disclosure on details and drawbacks on the property, so the seller is liable.  There is no requirement  on disclosures with a foreclosed home.  This opens your pocketbook to liability.  Along 

the same lines, when being evicted, owners don’t necessarily care what shape they leave the home before they are forced to leave.  You could end up with steep cleaning, repair and maintenance bills to get the home back to a livable condition.  Foreclosed homes do not come with any kind of warranty, and often times are not even available for inspection before purchase.  This leaves the new owner open for substantial risk, with additional investments having to be made for repair and replacement work.  Keep in mind that if you are buying a foreclosed home versus a new home, you are limited to the locations, features, characteristics, etc. of the homes.  Also, if a bank has not begun to initiate formal foreclosure proceedings, you may have to evict the foreclosed owner, tenant or whomever else may be occupying the property yourself.  You need to be a savvy buyer.  Some properties are mortgaged so steeply that banks often ask for bids that are higher than the property is worth.  You need to research the home values in the area you are looking in.  Buying a foreclosed home is a different buying process, so you need to be well educated and well prepared.  The process can take months, even well over a year, depending on the bank that owns the foreclosure.  Although often times purchasing a foreclosed home might mean a discounted purchase price, if the home is not available for inspection before purchase, getting a mortgage can become quite difficult.

Don’t settle.  Instead, settle into a brand new home, instead of the stress or disruptions with buying a foreclosure.  When it comes to homes, there is something to be said for new.  Walking in, on day one, with all the new touches that you helped pick out yourself.  When you build with Saddletree Homes, you don’t have to settle.  You don’t have to inherit someone else’s headaches.  Instead, you get more of what you want:  new appliances, up-to-date decor, new carpet, a contemporary floor plan and a comprehensive warranty.  All in a great location that suits you.  

Not only that, but you can rely on our quality and value for years to come.  With a new home that’s built to be energy efficient from the ground up and something you can’t count on from homes built ten, even five years ago.  With Saddletree Homes, you can focus on what’s really important:  Enjoying life together in your new home.

You made the decision to purchase a new home, executed the contract and applied for a mortgage. With today’s great rates you receive your approval letter from the lender, life is good. Now what?

Don’t do what you are tempted to do and go shopping for all the things you will need for your new home. Unlike in the past, lenders often pull a second credit report just before closings and new consumer debt from the furniture store or a new car loan can jeopardize the loan approval that you had on your new home and the whole deal could fall through.

Fannie Mae’s instructions to lenders say that “lenders must determine that all debts of the borrower incurred or closed up to and concurrent with the closing” are considered in the final loan analysis. And if those new loans push your debt to income ratio above the approved limits your loan will be denied.

Don’t take a chance of losing the opportunity to purchase your new home.

Here is a list from Bank of America of the 7 don'ts when buying a new home:

• Don’t buy or lease an auto.

The lender looks carefully at the debt-to-income ratio and a large payment such as a car lease or purchase can greatly impact those ratios and prevent the buyer from qualifying for the home loan.

• Don’t move assets from one bank account to another

These transfers show up as new accounts and complicate the application process, as you must then disclose and document the source of funds for each new account. You can consolidate your accounts after the close

• Don’t change jobs.

A new job may involve a probation period which must be satisfied before income from the new job can be considered for qualifying purposes.

• Don’t buy new furniture or major appliances for the new home.

If the new purchase increases your debt load, or reduces your cash on hand, it can disqualify you from the loan or decrease your funds to close.

• Don’t run a credit report on yourself.

This will show as an inquiry on your lender’s credit report. Inquires must be explained in writing and can slow the process down.

• Don’t attempt to consolidate bills before speaking with your lender.

The lender can advise you if this needs to be done.

• Don’t pack or ship information needed for the loan application.

Important paperwork such as W-2 forms, divorce decrees, Form DD-214, and tax returns should not be sent with your household goods. Duplicates can take weeks to obtain.
Please contact your Saddletree Sales Counselor for additional information.

Earth Day

What a beautiful day today has been as we celebrate “Earth Day” we have had sunshine, rain, and snow; spring time in the Rockies is beautiful. We at Saddletree Homes want to help protect this beautiful country we live in, that is why we at Saddletree Homes are committed to building energy efficient homes. We were the first builder in Colorado Springs to be E-star and then the first builder to be one hundred percent Energy Star. We pay to have each of our homes third party tested, to make sure that we meet all the EPA criteria for Energy Star homes. This testing allows for tax rebates, mortgage incentives, and savings on energy bills. We are helping to reduce everyone’s carbon foot print by building energy efficient homes. We feel it is our responsibility to continue to take care of this planet, so we work as a team to continue to be at the forefront of energy efficient and green building. This is a task that we take seriously, especially in these tough economic times, when it would be easier to cut corners and use cheaper products. Saddletree Homes has been through many tough economic times in the past and has continued to succeed because of our commitment to excellence. We will continue to be on the cutting edge of energy efficiency and green technologies, as well as provide our homeowners with the best possible products. Here are a few things that we are proud to do that make us energy efficient.

• 2x6 Exterior Wall Construction
• R-20 Blown- Cellulose Insulation
• 91% Efficient Furnace
• Sized, Sealed, and Insulated Ducts
• Low-E Vinyl Windows
• Tight Construction
• Programmable Thermostats

On this “Earth Day” we hope that you will join with us to be more energy efficient and to help keep this earth a beautiful place for generations to come.