Great Tips for a New Jersey First Time Home Buyer
Buying a new home is a crucial decision and if you are a New Jersey first time home buyer, then the following tips should help guide you. One of the few tests that you can do online to check whether you are financial ready is the affordability calculator and mortgage calculator. This will allow you to gauge where you stand financial with regards to the most suitable mortgage option.
Owning a house is a huge responsibility that offers great rewards. To achieve that, you must undertake proper planning and budgeting ahead for expenses. Also include the following costs in your monthly budget including; property taxes, home insurance, membership fees and property maintenance. Some of these fees are usually included in your mortgage payments while some are not, hence you should ask for more information regarding how these fees will be paid.
It is obvious that a buyer’s credit history also affects the home buying process as it influences whether or not you can get a good mortgage deal. Lenders are usually concerned about this particular detail as it shows them how well you repaid the money had borrowed. In general, lenders believe in giving mortgage products to people with higher scores since they have a higher chance of repaying the loan.
You will also need to pay a certain amount of money up-front to show your interest in the house so that you can get a mortgage. Actually, the initial money you pay for a down payment will also determine which mortgage you get and also your interest rates. A New Jersey first time home buyer who can contribute his own funds towards purchasing a home is considered a much better general credit risk.
You have probably started making a wish list containing all your expectations for the new home. Whether it is a good neighborhood, interior layout or number of bathrooms and bedrooms, there are a lot of things to consider. You should compile a list of all your requirements and then compare prospective houses to the list.
Arguably one of the most crucial features that first home buyers should consider is the location of your home in New Jersey. This is important since it influences the distance you will commute daily to work and also your proximity to shopping malls, churches, and other recreation areas. You should also check the quality of local public schools within that location.
The next step is now to find the most suitable home, and you can choose to do this yourself, but getting help from seasoned professionals could be quite beneficial. First identify the town that suits your requirements and then look for houses in those specific towns that are affordable and are within your budget. Some of the resources that you can use to find your house include websites, newspapers, and looking at “for sale” signage in targeted locations and also talking to acquaintances.
When you attend any open house, you should be very well prepared since this is an essential sales tool used by homeowners to market and try to sell their homes. Hence, you should bring your map and notepad to mark down all the locations you visit, noting down any special features. You should also pace yourself and avoid visiting too many open houses at once since you are likely to become biased and thus miss out on important details.
If you plan to checkout many houses, ensure you take breaks in between. For instance, you can view 3 houses before taking a break for lunch and then 3 more afterwards before taking another break and then seeing the final 3 houses in that day. Bring your camera with you and take pictures of any houses that catch your attention and also ask all the questions you can think of. Keep in mind that no question is foolish when it comes to buying a home.
Sometimes it is recommended for a New Jersey first time home buyer to take part in homebuyer counseling before making the final decision. Even though most loans are quite straightforward, going through counseling prepares you for the entire buying process including getting the best home, selecting a neighborhood, various mortgage terms and types and also real estate jargon.
Once you have found a suitable home, then it is time to make an offer. Experts recommend retaining an attorney for this particular step to help you negotiation terms, draft the purchase agreement and help you get the most suitable mortgage. Ensure you include contingencies and provisions in your offer to protect yourself from unscrupulous sellers.
Doing a home inspection before making a decision is vital for ensuring you get value for your money. Even though, you can inspect the house yourself, having professionals inspect and asses the house will assist you in finding out whether you are getting a good deal or being ripped off. The professional inspector will thoroughly assess the quality of the house and tell you of any necessary repairs or potential problems. This inspection service is usually affordable and will also save you money by preventing you from buying faulty properties.
As you now apply for your mortgage, you should do a title search to verify whether the seller is the true owner of the property in question. This search will also tell if there are any existing claims on your soon to be home. If you find any claims, your seller must pay them before you can close the deal. Additionally, you also need to buy title insurance and homeowners insurance before closing. Other important tests during this period include a survey, flood search, septic certification, well testing and termite inspection.
Finally, you can make the closing costs and then sign your mortgage. The seller will now hand over the title deed, and this transaction is going to be recorded in the local County Clerk Office. Once you have completed the short closing process, you are officially the new owner, and you can move in to your new home at your earliest convenience.