7 Home Buying Tips from Realtors in Fair Haven, NJ

Advice from Fair Haven, NJ Realtors regarding what to consider before purchasing a home

The housing market has gone through drastic changes over the last few years, affecting many things including the mortgage industry and its prospects. Lenders and their guidelines have become much more stringent, and the home buyers of today must be well-prepared and stable in order to obtain a home loan.

Following are tips from Realtors in the Fair Haven, NJ area for anyone seeking a mortgage or refinance in the market of today:

Know your affordability.

According to Fair Haven, NJ Realtors, a big mistake made by many is giving into the temptation of taking on more than they can afford. According to the Federal Housing Administration, (FHA), a homeowner’s monthly house payments should not exceed 31% of his or her gross monthly income. In addition, the FHA caps total debt payments to 43% of monthly earnings. This includes debt such as credit cards, auto loans and first and second mortgages.
 

Realtors in Fair Haven NJ Recommend obtaining your loan as early as possible.

The Federal Reserve has arranged to discontinue the purchasing of mortgage-backed securities. According to financial experts and Realtors, rates stand to increase significantly as private investors will call for higher rates in order to balance their risk.
 

Consider an affordable down payment.

Some lenders’ guidelines differ when it comes to minimum down payment amounts, but at least 10% is standard in order to qualify for a low-rate loan. Other options requiring at least 3.5% down or no-down payment mortgages are FHA, VA or RHS.
 

Become familiar with your credit advise Realtors in Fair Haven NJ

Your credit score is a determining factor for many things, mortgages included. Lenders have amended their guidelines to the grant loans with the best deals to borrowers with credit scores of around 740 or above.
 

Get more than two loan scenarios.

When applying for a loan, Fair Haven, NJ Realtors say it is a smart idea to obtain three or four loan scenarios to compare monthly payments and total fees. This could be a cost-effective alternative to focusing solely on the interest rate.
 
 

Check jumbo rates.

Towards the end of 2007, jumbo mortgage rates fell after soaring for the previous two years. In turn, rates on fixed-rate, 30-year jumbo loans fell to approximately 6%, with jumbo ARM rates also dropping. According to Fair Haven, NJ Realtors, refinancing can possibly be a good option for homeowners with a minimum of 20-30% equity.
 

During hard financial times, seek help from a counselor.

According to NeighborWorks America, homeowners falling behind on mortgage payments are 60% more likely to ultimately stay in their homes when they consult a counselor specializing in foreclosure. They are also most likely eligible for benefits such as lower payments or loan modifications. Realtors in Fair Haven, NJ strongly recommend going this route to homeowners in distress situations.
 
 
 
 
 
 
 
 
The Real Estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a Real Estate professional who will provide valuable information and trustworthy advice. For more information on NJ Real Estate, call us today or click here to be connected with one of our top Real Estate specialists.