5 Questions to Ask Before Looking at Homes

The first step in buying a home isn’t looking online for properties. It’s answering these five questions about your financial situation.

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If you’re thinking about buying a home, here are five questions that you should ask yourself before you even start the first step of the process:

1. Do you have a steady source of income? If you’ve been employed on a regular basis with a steady level of income, that’s a good start.

2. Do you have a good record of paying bills? This will affect your credit and will also tell a lender whether you’re responsible enough to handle a mortgage payment.

3. Do you have enough money for a down payment? You only need 3.5% with an FHA loan, but a majority of people put down 20% to avoid paying private mortgage insurance.

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A steady source of income is essential.

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4. Do you have any outstanding debts? Any kind of monthly payment you have could affect your debt-to-income ratio.

5. Can you pay the mortgage each month with additional costs? When you pay rent, that’s typically all the money you have to worry about (save utilities and cable). When you own a home, there are a lot of extra costs that come up. Whether you have to replace an appliance or fix a hole in the wall, you’ll need to have enough money to do that.

If you can answer yes to all of these questions, it might be time to give us a call and get a buyer consultation set up. Then we can get you pre-approved with our preferred lender and begin your search.

If you have any questions, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.

Where Should You Begin Your Home Search?

Can you trust websites like Zillow and Trulia during your home search? While these are very popular sites for home buyers, their listings may not be updated.

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Many of our clients begin their home searches online by going through the listings on sites like Zillow, Trulia, and Realtor.com. They find a few they like and then ask us to get them private showings of the properties. What will often happen is that we’ll pull a home up on the MLS only to find out that it is already under contract or has already sold.

The reason that properties show up on these sites as “active” is because agents have the ability to put their own listings on sites like Zillow, Trulia, and Realtor.com. However, they often do not take them down once the home has sold. This could either be because the agent forgot to take the listing down, or it could be a strategy that the agent is using to get more leads by baiting buyers with the property and then trying to sell them on another home.

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Not all 'active' listings on most websites are still available.

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The nice thing about our website is that our listings come directly from the MLS, so every property that you see listed on our website is still available. It’s very regulated and there aren’t any false listings out there to dash your hopes for a new home.

Our listings are only linked with Hudson County right now, but we plan on expanding our coverage to the surrounding counties soon.

If you have any questions about how to find the home that’s right for you or where to begin your search, don’t hesitate to reach out to us by phone or email. We’re always happy to help you!

Why You Shouldn’t Skip Pre-Approval in North Jersey

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Today, we’ll talk about skipping the pre-approval process in the surrounding North Jersey area. We see buyers trying to do this from time to time, but it’s definitely not a good idea. Here’s why the pre-approval process is so important and crucial.

1. You need to know what you can afford. You’ll be able to figure out closing costs and what rate you can expect on a mortgage, too. You need to have a budget in order to know what price range of properties to look at.
2. It lets you know you’re serious about buying a home. Sellers will pick up on your dedication if you show them you’re pre-approved already. Some sellers might not even let you see their home if you don’t.
3. It reassures you what your credit actually looks like. When you’re pre-approved, you can check up on your credit score and history. You can find out if something made it drop.

If you’re thinking about buying or selling a home in the local region, give me a call or send me an email or even just a text message. I’d be happy to answer your real estate questions and serve your needs.

What Determines Your Buying Power in North Jersey?

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Today we’ll discuss the four major things that affect your buying power in North Jersey.

1. Your credit score will obviously be a major factor. You need to be in the high 600’s or low 700’s in order to qualify for a good loan.
   
2. Prepare to make a sizable down payment as well. If you don’t pay at least 20%, you will be stuck with private mortgage insurance payments, which will hurt your buying power over time.
3. Your debt to income ratio will be an important factor for the bank. They want to know what you make compared to what you owe. 
   
4. Your other assets will also be examined. These are things like investment properties, businesses, or other forms of income you have.
   

I think that this is a great year to buy a home. Interest rates are very low but they are still rising. You have an opportunity to save thousands of dollars over the lifetime of a loan right now. If you want to set up a consultation to talk about your buying power and what you might be able to afford, please don’t hesitate to contact me.

I look forward to hearing from you!

Three Questions North Jersey Buyers Should Consider

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Want to buy a home? Search all homes for sale.

Today, we have three important questions buyers shoulder consider before buying a home.

• Why are you buying a home in the first place? Ask yourself this to gauge your motivation. This question can also help you determine whether buying or renting is better for you. How much space do you need? Are you planning for retirement? What schools are in the area? There are a lot of variables that come into play when looking for a home.

• Where are home values headed? I predict that we have another two years of growth left and then the market will stabilize. Economists say that by 2019, the real estate market could see a 23% growth in home values. I don't think it will be that extreme, but I would love to be proven wrong!

• Where are mortgage rates headed? We keep hearing that rates are going to go up. When people said rates would go up in 2013, the rates went up a full point in two weeks. We won't see anything like that. Rates are still historically low, hovering around 4%, and if they do go up a half point, it won't affect the market too much.

These three questions will really help guide your home search in northern New Jersey. If you have any questions, give me a call or send me an email. I would be happy to help you!