DeNova Dives In: 5 Myths about Home Buying

Purchasing a home can feel like an overwhelming undertaking. For some, it may be the better choice over the rental market, but the comfort in renting keeps them staying put. Fees, credit, and the ability to fallback on the landlord for repairs seemingly makes things easier, but knowing some key facts can make home buying seem like your dream come true.

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Myth #1) Renting is cheaper than buying

This is one of the most commonly expressed concerns for potential homebuyers.

Although there may be more upfront costs when purchasing a home; down payment, closing costs, etc., however, over time, renting can end up taking more value out of your pocket. If you are looking for a place to live, a competitive rental market may drive up the prices, and mixed with low mortgage rates for home loans plus potential tax savings, your monthly mortgage can end up substantially less that paying rent. The mortgage you are paying each month is invested into the property. Also, oftentimes, you may experience an appreciation in the value of your home when it comes time to sell.

Myth #2) Maintenance costs can be stifling

Yes, your home will experience wear and tear. This is totally normal, and something to plan for. The thing about owning a home is, you have to be prepared and equipped to pay for pretty costly items or services every once in a while. If you are able to do that, home ownership can definitely work in your favor. It’s estimated that over a 10-year period, home owners will pay an average $100-200 per month for repairs and maintenance. So for example, if average rent in your area is $2,000, yet you’re able to obtain a monthly mortgage amount of $1500, you can see the obvious costs savings there…about $300-400/month.

Myth #3) You need 20% for a down payment

If you’re in the market where a home your desired size may cost $550,000, coming up with enough for a down payment may seem like a laughable thought. However, many think you have to meet the mark of 20% down. For a home at that cost, that would mean $110,000. Let’s explore this common 20% down myth. Although the national average for a down payment usually falls between 10-20%, it’s not a requirement. The amount asked for a down payment is decided by several different factors: FICO score, borrowing history, the lender’s standards and procedures, the current housing market, and even the house itself. A down payment may also be lowered if the homebuyer qualifies for a VA or FHA loan which allows for as little as 0-3.5% down.

Myth #4) Your credit score isn’t good enough

Ever since the home loan meltdown of 2008, there has been a nasty myth circling around, the myth that your credit score isn’t good enough to qualify for a home loan.

Typically, you’re somewhat good to go as long as your credit score sits at 650 or higher. Not quite there? Look to an FHA loan – these are loans offered through lenders approved by the Federal Housing Administration. It is likely that even with a score as low at 580, you can gain approval. Even lower? According to the U.S. Department of Housing and Urban Development (houses the FHA), as long as you can come up with a 10% down payment, you may qualify for a loan with a credit score as low as 500.

Myth #5) It just seems so much easier to rent…why is buying worth it?

What makes a DeNova home worth the effort of qualifying for a home loan?

DeNova is a privately held, builder owned company. Business to them is personal and heartfelt. Every family that purchases a home is considered to be part of the DeNova Family of Home Owners. Being privately held, things are handled with efficiency, nimbleness, and thoughtfully. Every community is planned to be a perfect fit into the surrounding area and landscape. Each detail and upgrade, every appliance and fixture is brand new and crafted with care. DeNova aims to offer more than a home, but a haven in which memories are made.

To check out all of our wonderful DeNova communities, please visit http://www.denovahomes.com/neighborhoods/

For financial planning and to get pre-approved for your brand new home, talk with
Laurie O’Callaghan at Wells Fargo Home Mortgage. Find further info here http://www.denovahomes.com/buying-your-home/financing/

Sources:

http://www.communityhousingnetwork.org/activek/content.asp?contentid=96

http://www.123mynewhome.com/resource/the-truth-will-set-you-free-4-common-myths-about-home-loan-down-payments/

http://money.usnews.com/money/personal-finance/articles/2015/01/30/how-to-get-a-home-loan-with-less-than-stellar-credit

 

 

 

 

DeNova Community Highlight: Drake’s Bend and Edgewater at River Islands, Lathrop, CA

Whether you’re trying to decide if now’s the best time for home buying, there are a few elements that may put you all the way over into the yes column. With over 25 years in the home building industry, we’d imagine you’d value DeNova homes’ amount of experience and commitment to quality, accessibility, and thoughtfully placed home communities.

A real bang for your buck, Drake’s Bend, one of our home communities in Lathrop, CA offers all of that, and is considered the best value for a brand new home in the River Islands area. Also within River Islands is Edgewater, which has beautiful water lots and shared boating decks as well as SOLAR included! These 2 communities have access to great schools and amenities…plus being surrounded by beauty and caring neighbors, Edgewater or Drake’s Bend would be an excellent place to land your brand new home and engrain yourself within the fabric of a brand new community!

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Growing River Islands

River Islands is a fantastic and well designed master-planned community nestled in the Sacramento-San Joaquin River Delta in Lathrop, CA. This area, interestingly enough, is being dubbed as having agricultural roots with a tech vibe. This area features a state of the art business park and a nature preserve…a small highlight juxtaposition of the two worlds coming together.

Education

The first school for this area has been up and running since 2013, with a total of 9 schools designated for its residents: 8 elementary/middle schools and one high school. Your children will have ample opportunities for experiential and hands on learning as well as technology-based curricula, all a bicycle ride away from your brand new DeNova home! There are also a few fantastic options for post-secondary education as well. There’s ITT Technical Institute, San Joaquin Delta College, University of California – Merced, University of the Pacific, and CSU Stanislaus.

Healthful living stitched into every inch

The wonderful thing about a newly constructed community is the thoughtfulness that’s been placed into the entire design, which makes recreation extremely convenient. There are broad sidewalks and bike lanes from each neighborhood that connects to a riverside trail, schools, the Town Center, the Business Campus and large parks. There are community gathering areas and pocket parks tucked into the neighborhoods. There’s a bocce court, regional sports fields, dog parks, lakes for boating, and other various modes of water transport!

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The Great Outdoors

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There are plenty of options to explore and take in nature’s beauty. You’re able to camp with tents or RV – even shower as you normally would during a close to home excursion. Boat launching is available, with a play area, barbecue pits, horseshoe pits and picnic areas. Close by, you can visit Caswell Memorial Sate Park in Ripon or Oak Grove Regional Park in Stockton.

Activities

So many wonderful things to get into around Lathrop…next door to the Drakes Bend and Edgewater communities, Dell’Osso Family Farm hosts an annual pumpkin maze, holiday activities, a winter snow tubing hill and seasonal mud runs.

For sports aficionados, head out to the ballgame to watch the Stockton Ports and Modesto Nuts. Feel like playing a round? Head to the Manteca or Tracy Country Club and enjoy the beautiful greens.

Another great option is the Lathrop Skate Park. This one-of-a-kind park features one of the largest half-pipes in the Central Valley and offers a variety of skate elements to challenge the beginner and the advanced skater. What’s also great is the local community center is nearby for refreshments and restroom facilities.

Location and Accessibility

Your brand new DeNova home would be nestled at the hub of 3 major freeways: I-5, I-205, and Hwy 120. You would be about equal distance between San Francisco, San Jose, and Sacramento, getting to each destination around a little over an hour!

Want to know more? Check out details directly from our site here

http://www.denovahomes.com/neighborhoods/drakes-bend/floor-plans/plan-2

Drake’s Bend community details

With gourmet kitchens, elegant living spaces, private master suites, these Cottage, Farmhouse, Traditional or Craftsman-style homes offer plenty of customizing options and upgrades to choose from to make it your very own! From 3-4 bedrooms, 1,886-2,450 sq feet, each home features a 2 car garage and option for California Room.

Featured Floorplan: Harlequin

Sq Ft: 2,182

Floors: 2

Bedrooms: 4 w/option for California Room

Bathrooms: 2.5

Enjoy a very open and welcoming kitchen and living area in the Harlequin Floorplan. With a fireplace option, you can spend your cold winter nights cuddled up in front of a warm fire, or a bright spring morning enjoying your tea in the optional California room. With more than half of the second floor, your master suite and bath will definitely give you the spacious luxury you’ve been dreaming of. You’ll appreciate the convenience of the plan, as the laundry room sits just around the corner from the master suite door.

Edgewater SOLAR community details

With gourmet kitchens, elegant living spaces, private master suites, these Cottage, Farmhouse, Traditional or Craftsman-style homes offer solar as a standard and plenty of customizing options and upgrades to choose from to make it your very own! From 3-4 bedrooms, 1,841-2,568 square feet, each home features a 2 car garage and option for California Room.

Featured Floorplan: Whiporwill

Sq Ft: 2,568

Floors: 2

Bedrooms: 4 w/option for Den/5th Bedroom/California Room

Bathrooms: 3

This plan from Edgewater is the largest of the 4! And it has a beautiful open concept with a ton of options. Along with a 2 car garage, attached is a spacious entry way with porch and bathroom to accommodate all of your outdoor adventures in your new community. There’s a large great room with optional fireplace and California room. Serve wonderful meals from your gourmet kitchen and designer dining area. Upstairs, peace and quiet is key, as bedrooms and the master bedroom are separated by a hallway. You’ll also enjoy an inviting master bath and spacious walk in closet.

Want to see a list of features for Edgewater homes? Visit http://www.denovahomes.com/neighborhoods/edgewater/features/

To learn more about DeNova, go to our site here http://www.denovahomes.com/about/

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