So you’re finally ready to buy your new home. Little Silver, NJ real estate is an excellent choice for buyers of all backgrounds. But before you pull the trigger, here are a few things to know before moving to New Jersey and making an offer.
Do a financial wellness check
Before reaching out to seller’s agents, do a comprehensive audit of your personal finances. This will help you determine whether or not you’re financially prepared the upfront and ongoing costs of homeownership
- The upfront costs of buying a home include the down payment and closing costs
- The ongoing costs of homeownership include repairs, replacements, renovations, maintenance, utilities, HOA fees, and property taxes
From there, you’ll know whether to take the next step or wait a bit longer to make a home purchase.
Evaluate your savings. Aside from having enough saved up for a down payment, you need to have an emergency fund that covers three to six months of living expenses. In case something breaks down in the home and it isn’t covered by a warranty, you’ll have to shoulder the costs of repairs or a full replacement. Most lenders will require borrowers to have a sufficient emergency fund when approving a loan application.
When making a major financial commitment like a home purchase, it’s important to your savings in a safe but readily accessible account that provides a decent return that will help you keep up with inflation.
Assess your spending. Where exactly does your money go each month? Scrutinizing your monthly spending and knowing where to tighten your belt will help you determine how much you can reasonably put towards mortgage payments. Document all expenses related to food, utilities, car insurance, debt, clothing, entertainment, and miscellaneous items to get a clearer picture of your financial situation.
Check your credit. To qualify for a home loan, buyers typically need to have a good credit score, a documented history of paying bills on time, and a healthy debt-to-income (DTI) ratio.
Know what you want
With so many options for residential property, including traditional single-family homes and townhouses to condos and multi-family units, it can be hard for first-time buyers to make a decision.
If you have difficulty choosing the kind of property to buy, be clear about your goals.
Know your reasons for buying. Your reasons for buying a home can range from personal (i.e. stability, settling down and having a family) to practical (i.e. home flipping, home resale). Knowing the rationale for your home purchase will help guide your decisions.
For example, if you’re looking for a starter home with plans to trade up to a larger, nicer home within five years, then you can buy a relatively modest property that suits your needs. But if you’re looking for a forever home that’s fit for retirement, you’ll need to choose a good home in a stable and established community.
Think of specific home features. Make a list of property features you need in a home, including square footage, location, outdoor space, and number of bedrooms and bathrooms. You can also list more specific features like kitchen appliances, basements, a dedicated home office, or opportunities for home additions somewhere down the line.
While it’s good to keep this list flexible, be clear about your non-negotiables to make it easier for an agent to find suitable listings.
If you’re ready to buy your first home in and around Monmouth County, NJ, then a Colts Neck real estate search might be in order. You can reach top agent Colleen Meyler here. You can also contact her at 732.995.5102 or ColleenMeyler(at)gmail(dotted)com . With over 30 years of experience in residential real estate, Colleen will help you find the right home for your needs.