FAQs

Renting: Pro's No worries about maintenance, no mortgage interest, much easier to terminate a lease rather than selling a home and no property taxes.

Con's: All rent paid goes to landlord and tenant receives zero equity in return, permission must be given for all minor alterations, repairs may not be able to work around your schedule, building or residence can be sold which can lead to the eventual termination of the lease upon request of the new owners, rent can increase at any time, many do not allow pets, does not improve credit since you are not paying off a debt.

Buying: Pro's Pride of ownership, Equity built over the long run, Owner can make major alterations to property with proper town permits, Owner has freedom to devise property in a will, Improves Credit, Pets are allowed since you own the house itself.

Con's: Owner is responsible for all repairs of the land and home itself, Owner must pay property taxes, property value can decrease in a bad market, High upfront cost

It depends, however, the most commonly used ratio for a conventional loan is 28/36. This simply means that no more than 28% of your gross monthly income cannot be used to pay toward your home mortgage. The 36% in the ratio refers to the fact that no more than 36% of your monthly income can be used to pay toward your combined monthly mortgage payment AND monthly debt payment obligation.

No! You can have a credit score as low as 620 with just 3.5% and still qualify for a home loan! The interest rate may be a little higher but this does not mean it is out of the realm of reason. We have lenders that will work with you to make you a homeowner!

Yes, we are experts in Real Estate Owned Property/Foreclosures and Investment Properties. With our specialization in this area and hands-on experience, we will help you navigate even the most complex transactions.

Many people think that all they need to purchase a home is the down payment, but this is a myth. Let’s use an example for comparison. Let’s say you purchase a home for $500,000 and put down 10%. From here, your down payment is $50,000. Next, you’ll need to pay attorney fees of approximately $1500. Loan Origination Fee around 1% of home purchase, property tax payment if applicable, PMI payment (First Private Mortgage Insurance Payment), recording fee $125 , title search fee $200, Home Inspection Fee ($600), Title Insurance 1% of purchase price, Appraisal fee (Approx. $400). All in all, you can expect to pay approximately 3-5% of your loan value in closing costs. Budgeting is paramount so that these costs do not come as a shock at the closing table!

The typical time it takes to close on a home from signing the contract to the closing table is approximately 30-45 days. Complications in the deal can push it over 60 days in some cases. The key is patience and having an experienced realtor in your corner!

There are 9 steps to the closing process:

1. An agreed upon price and conditions outlined in a Signed Contract

2. Attorney Review

3. Home Inspection

4. Mortgage Application

5. Mortgage Appraisal

6. Title

7. C/O (Certificate of Occupancy)

8. Clearance to Close from the Lender

9. Closing Table!

A home inspection is very important for the simple fact that once you close, it becomes your problem to fix any issues that may arise. It is better to know what you are getting into before purchasing a home. We implore you to get a home inspection which will reveal issues in plumbing, electrical, termites, heating and cooling, leaks and oil tanks/septic tanks in the ground. This can sometimes be used as leverage in asking the seller for what is known as a concession. A concession is a course of remediation or financial compensation off of the sale price.

The worthiness of your investment is contingent on the following items: Mortgage Payment (Principle), Interest, Property Taxes, Insurance, Water/Sewer (if applicable). You must subtract the expected Gross rent per unit per year and subtract the expenses listed above to obtain your net profit. Divide your net profit by your purchase price + renovations and that will give you your CAP rate (Capitalization Rate). Your target should be from 4-6% for a long term hold and 15% percent for a flip.

A seller will typically pay 0.85% of the value of a home in the state of New Jersey when transferring title. Example: If the home sold for $800,000, the seller will pay $6800 in transfer tax.

Introduction:

Welcome aspiring homeowners! If you're ready to embark on the exciting journey of buying your dream home, it's vital to have a clear savings plan in place. As a seasoned real estate agent, I've witnessed the transformational power of owning a home and understand the challenges that come with achieving this milestone. By following these expert tips, you'll be well on your way to finding the perfect home while staying on top of your financial goals.

Establish a Clear Savings Goal:

The first step towards saving for a home is setting a specific target. Determine the price range of the properties you're interested in and calculate a realistic down payment amount. By having a precise figure in mind, you'll gain clarity and motivation, making it easier to stay the course when temptation arises.

Create a Budget and Stick to It:

A well-crafted budget is the foundation of successful saving. Analyze your income, monthly expenses, and discretionary spending to identify areas where you can cut back. By allocating a specific portion of your income directly towards your savings, you'll steadily build your down payment fund. Stick to your budget diligently, reminding yourself of the long-term benefits homeownership brings.

Track Your Spending:

To identify areas where you can make savings, you need a clear understanding of your spending habits. Use budgeting apps and tools to track your expenses meticulously. By examining your spending patterns over time, you'll uncover areas where you can trim unnecessary costs. Curbing impulsive purchases and redirecting those funds towards your down payment will bring you closer to your goal even faster.

Automate Your Savings:

Consistency is key when it comes to saving for a home. Set up an automatic transfer from your checking account to your dedicated savings account each month. This method eliminates the temptation to spend that money elsewhere and ensures your savings grow consistently. Automating your savings maximizes the potential for compound interest, enabling your funds to work harder for you.

Cut Down on Debts:

Outstanding debts can hinder your progress towards homeownership. Prioritize paying off high-interest debts, such as credit card balances or personal loans. Minimizing your overall debt burden not only improves your credit score but also increases your chances of securing a favorable mortgage rate. Finding ways to reduce your debts faster will bring you closer to your dream of buying a home.

Explore Down Payment Assistance Programs:

Many first-time homebuyers are unaware of the various assistance programs available to them. Research the options provided by government agencies, community organizations, or even your employer. Potential resources include down payment grants, forgivable loans, or low-interest loans, all of which can significantly ease the financial burden of buying a home.

Introduction:

As a potential home buyer, one of the most critical stages in the purchasing process is the inspection. A thorough inspection provides valuable insights into the condition of a property and ensures you are making an informed decision. To help you navigate this stage successfully, we will delve into what you should find during an inspection. Whether you are a first-time buyer or an experienced investor, let's uncover the essential elements to consider in your pursuit of finding the perfect home.

Find a Qualified and Experienced Inspector:

To kickstart your home inspection journey, locating a skilled and knowledgeable inspector is crucial. This professional should possess accreditation, certifications, and practical expertise in home inspections. Their role is to examine the property with a discerning eye, identify potential issues, and provide you with an unbiased and comprehensive assessment.

Find a Structurally Sound Property:

The foundation is the fundamental building block of any home. During an inspection, it is crucial to ensure that the property's structure is sound. Look for signs of cracks, sloping floors, or uneven walls, which could indicate potential structural problems. A dependable inspector will meticulously examine the foundation, walls, roof, and overall structural integrity of the property.

Find a Well-Maintained Electrical System:

Electrical malfunctions pose a significant risk and can lead to fires or other hazards. As you explore a potential property, prioritize a comprehensive evaluation of the electrical system. Verify that the wiring, outlets, circuit breakers, and other electrical components comply with current safety standards. Also, consider the adequacy of the system to meet your present and future needs.

Find a Reliable Plumbing System:

A properly functioning plumbing system is vital for daily convenience and to avoid expensive repairs down the line. Ensure the inspector examines the water supply lines, drainage system, water heater, fixtures, and sewage infrastructure. Detecting hidden leaks, outdated plumbing, or inadequate water pressure will help you make an informed decision about the property's condition.

Find an Efficient HVAC System:

A well-maintained heating, ventilation, and air conditioning (HVAC) system is essential for comfort and optimal indoor air quality. Ask your inspector to assess the age, condition, and efficiency of the HVAC system. They should inspect the furnace, air conditioning unit, air filters, and ductwork. A thorough examination will alert you to any potential repairs or replacements needed in the near future.

Find Evidence of Pest Infestations:

Pests can cause significant damage to a home's structure and compromise your enjoyment of the property. As part of your inspection, request a thorough check for signs of pests, such as termites, rodents, or insects. Recognizing these issues early on will help you understand the impact they may have and enable you to address them proactively.