Since buying a home is one of the biggest decisions you will ever make, you need to be prepared. One of the decisions you will face is whether you should choose a newly built home or a pre-owned home. This can be a difficult decision and there's no cut and dry answer.
The decision always starts with the money. After you go see the local mortgage lender you plan to use and get your pre-approval, you will have a better idea of what you will be able to afford. However, just because the mortgage company pre-approves you for a specific amount doesn't mean you should use it all.
Type of Home
After you know how much you can afford, the next decision is the type of home you need. Single family homes are often found in subdivisions and provide a large living space. You can also choose between condominiums, duplexes and town homes. These are all a bit different and it's important to weigh the pros and cons of each for your situation.
Why Buy New?
If you think buying a newly built home may before you, it's important to understand the benefits. The home will be very new with a newer design, wiring, plumbing and more. This usually means less maintenance and newer appliances.
Why Buy Pre-Owned?
Pre-owned has plenty of advantages, as well. With a pre-owned home, you will probably start with more equity since the appraised value has already been established. You may also be able to do some renovations, depending on your situation. A pre-owned home tends to be in a more established neighbourhood, as well.
Whether you buy pre-owned or new, as a first-time home buyer it's important to take your time and make sure you get the right choice for your situation. A skilled real estate agent can help answer any questions you may have about the process.
By Justin Havre