7 Tips for First-Time Home Buyers from Hazlet, NJ Realtors

Suggestions from Realtors in Hazlet, NJ on what to do to financially to have the best first-time home buying experience

Buyers out there wishing to purchase their first home should be knowledgeable regarding home mortgage loans and interest rates, credit reports, and finances and the true cost of owning a home. Although first time home buyers are in an exciting stage of life they also have to keep things under control in order to enjoy a seamless transaction, according to Realtors in Hazlet, NJ. They key to savvy home buying lies in timing, especially in recent years as you can save thousands on your dream home.

See below for more first-time buying financial advice from Realtors in Hazlet, NJ:

Double-check your credit report

The mortgage industry downfall means the best deals go to homebuyers with immaculate credit, and those with damaged credit might not be able to get a home loan at all, or may face high interest rates. Prior to beginning your home search, it is a wise idea to check your credit report for any errors and incorrect information, according to Realtors in Hazlet, NJ. If this is the case, dispute it immediately and make copies of evidence regarding the error to discuss with your mortgage lender.

Know the true costs of home ownership

The principal and interest on a mortgage payment is only the tip of the iceberg in owning a home. Escrow payments and private mortgage insurance, if required, can add hundreds of additional dollars or more per month to a mortgage payment. Also, home owners must worry about the maintenance and repairs of their home.

Be cautious when it comes to short sales

A short sale is a home sale where the owner must sell the home for less than what is owed on the current mortgage. Because the bank must approve any such sale, a “short-sale” home may have a sales and negotiation process that very lengthy and drawn out. Also, short sales are usually “as is” sales which Realtors in Hazlet, NJ say can pose more risk than makes sense for many first-time buyers or buyers in general.

Speak to mortgage lenders

Seek friends and relatives for references to dependable mortgage lenders. Be sure the lender you choose has the appropriate state licenses. Before you purchase a new home, check rates and offers from several other mortgage professionals to get the best deal. Your credit score will not decline if multiple similar credit report requests are submitted within the same time frame, so you are able to shop around.

Make sure you have saved enough

A down payment is imperative in the housing market of today. When possible, first time buyers should aim to put down 20% of the purchase price. If not, their lender can advise them of other financial options, according to Realtors in Hazlet, NJ.

Purchase a home while prices are still low

Home prices have only increased slightly since 2009, and they are still approximately 13% lower than they were a year ago. This means that now is a better time than ever for first-time home buyers to invest in a home.

Remember: Buyer beware

Some of the deals found on houses today are advertised as “fixer-uppers” or sold “as is” due to foreclosure. A life-saving investment is a home inspection which will highlight any defects in the home and provide estimates to repair those problems, say Hazlet, NJ Realtors.

 

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.