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9 Things You Don’t Want to Miss When Buying a Brand-New Home

By U.S. News & World Report

Economists are predicting that 600,000 brand-new homes will be sold this year. If you’re in the market for a new-construction home there are several things that you have to keep in mind. Paying attention to these tips could save money and aggravation.

Have a pre-drywall home inspection. A typical buyer of a new home may think, “Aren’t home inspections only for older, existing homes?” While not getting a home inspection before buying an existing home is a bad idea for a number of reasons, it’s also not a good idea to avoid an inspection when buying a new house.

There are two types of new-home inspections: pre-drywall and final walk-through. First, if you’re buying a home that is being constructed from the ground up, it’s a good idea to get a pre-drywall home inspection. A pre-drywall inspection helps a buyer be sure about electrical outlets, cable and internet access lines and other electrical features, such as ceiling fans and entertainment systems.

If you’re paying to have additional electronic features installed in your home, a pre-drywall inspection helps ensure that they’re in place. Better to know before the dry-wall is hung than after.

[Read: How to Get Along With Your Contractor.]

Look past the nice finishes. It’s easy to be wowed when browsing through a model home. However, model homes are often decorated with high-end finishes that could dramatically increase the price of the property, above what the sign out front says.

Once you’ve realized that the home you’ve fallen in love with comes at a hefty price when the decorator selections are considered, it’s time to make a list of your must-haves and nice-to-haves. A builder may be willing to discount some finishes from their list price in this pre-selection phase. But do the homework. Just because the builder says that the marble countertops can be had for half of the listed price doesn’t mean that they’re a deal. Maybe another stone finish is more your style and looks just as great — and is less expensive.

A buyer’s real estate agent can ask around for typical wholesale or builder prices to ensure that a deal is really a deal, and then help you negotiate for the best total price.

Work with an agent. As mentioned above, use a buyer’s agent even when purchasing a brand-new home. The new-home builder may offer some resistance, but it’s in the best interest of buyers to have their own representation. No matter what the builder says, if he’s sitting across the table at closing, his interests are his own, not yours. A buyer’s agent will help ensure the process goes as smooth as possible and according to the final contract.

Consider all mortgage options. Bundling may be a great way to get cable TV, but it’s not always the most affordable way to shop for a new home. A home financing bundle offered by a builder may include the mortgage, discounted mortgage insurance and the waiving of other fees. The bottom line of this bundle provided by the new-home sales agent may seem like a good deal. But is it?

As with any financing choice, partner with a home mortgage advisor from a U.S. Department of Housing and Urban Development-approved housing counseling agency to help shop around for the best products. If you’re a first-time homebuyer, you may qualify for a low-down payment mortgage that doesn’t require mortgage insurance, eliminating the need to use the builder’s mortgage product that may have offered the same, but at a higher price.

[Read: 6 Ways to Boost Your Chances of Getting a Mortgage.]

Do the math on energy efficiency. Be mindful of the pluses and minuses of major systems upgrades being pitched by the builder such as high-end water heater, appliances, heating and cooling systems and super-efficient windows. Upgrading the right items could increase the price of the home, but pay for themselves in a short time.

However, if you plan to move within a few years, getting payback on the upgrades through lower utility bills is not likely to happen. When calculating payback period for energy efficiency, take into account how long you reasonably expect to live in the home. Of course, resale should be a consideration, too, when looking at items like windows, as high-quality windows could be a positive for future buyers.

Weigh your appliance options. Speaking of appliances, some home builders, especially builders that construct entry-level priced homes, may not include appliances in the deal. However, not having appliances come with the home can turn out to be a bonus. Big-box stores and specialty retailers often have deep discounts on refrigerators, stoves, washers and dryers and more. Keep a sharp pencil handy and figure out the least expensive option, and decide accordingly.

Know the details of the new-home warranty. Most new houses will come with some kind of warranty that covers various things in the home — everything from appliances, heating and air conditioning systems, the roof to the garage door and more. However, not everything is covered for the same length of time. Knowing the different coverage details and planning for their expiration can save money down the road if a covered item fails and is out of warranty.

Read the HOA rules. The majority of new homes built in the U.S. today are part of a planned community that has a homeowners association. HOAs often charge a fee that is separate from your mortgage, and could range from just a few hundred dollars per year to thousands of dollars. This fee covers the maintenance of common areas, certain types of insurance and access to amenities like pools or recreation centers.

The rules of the community as enforced by the HOA may restrict what you can do to the exterior of your home — dictate the color of siding, for example — and how you could decorate your home. Work with your housing counselor and real estate agent to review the homeowner’s association documents and to know the ins and outs of your HOA’s requirements.

[See: 9 Outdoor Living Renovations to Splurge on This Summer.]

Expect delays in the home-build process. When buying an existing home, the house is already built. New-home builds are often finished on time, but finishes can be delayed weeks and even months after the original contract. Make sure you’re prepared for delays by having a month-to-month lease if you’re renting, or contingencies if you’re selling an existing home at the same time you plan to move to your new property.

More from U.S. News

The Little Things: Small Decisions That Can Impact Your Home’s Sale Price

Are 3-D Printing and Virtual Reality the Future of Housing Construction?

How Technology Plays a Part in Getting a Mortgage Today

9 Things You Don’t Want to Miss When Buying a Brand-New Home originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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