|Owning a home is a big responsibility that comes with great rewards. Budgeting is important, so plan for sudden expenses that may arise in addition to your regular monthly expenses.
+ Property taxes and special assessments
+ Home/hazard insurance
+ Property maintenance
But before you can consider the Big “B” (Buy), it will require another Big “B,” which stands for Budget.
So the day you decide that you want to buy a home is a big day in anyone’s life. It is a good decision, but one that will involve a degree of effort, risk, education and endurance in order to bring you to that dream home and then keep it.
+ What is your current budget?
+ What additional expenses will you be expected to pay on a monthly basis?
+ What about a budget for unexpected expenses?
+ The first step necessary to take after you figure out your present budget is to estimate what your mortgage payment will be. This is where you can take advantage of some of the resources available to you online, especially if you live in New Jersey.
The affordability calculator will help you to determine how much house you can afford. The calculator tests your entries against mortgage industry standards to determine the highest priced house you can qualify for, along with the down and monthly payments you would need to make in order to sustain homeownership. http://www.njrealtor.com/consumers/affordability-calculator/
Know Your Credit History
It’s no secret. Your credit history is an important factor that affects your ability to obtain a mortgage for the purchase of your home. Lenders want to see how you borrowed and repaid money in the past. This is reflected in your FICO score. FICO scores range from 300 to 850, and lenders believe that borrowers with higher scores are more likely to repay their loan. Homebuyers should obtain a copy of their credit report by contacting www.annualcreditreport.com.
Answer these questions:
Am I better off renting?
How much home can I afford?
How much can I save in taxes?
What is my monthly spending plan?
Is it better to rent or buy?