Affording to Buy a New Jersey Home

Can you really afford a house? If so, how much house can you afford? To determine this answer will take serious financial planning, and the best time to start is at least six months before buying the home.

Although buying a new home may seem like an American Dream or romantic venture, the reality is that the house you can afford depends on your current income and debt obligations. You must be able to pay your mortgage, satisfy all your current debt, and still have money left over each month to put in the bank. When you consider all these issues, you may find you will actually be shopping for a lower-priced house than the anticipated dream home.

If after careful financial evaluation, you realize you cannot afford the house of your dreams, don’t feel tempted to count on expected annual raises, thinking that eventually you’ll be able to afford the higher payments. Most raises are generally 4% to 7%. In bad times, you won’t get a raise, while inflation overtakes you. In the worse case scenario, you may get laid off and you won’t be able to afford your monthly bills. If you don’t have a budget that includes a savings account worked out on a spreadsheet, you are faced with a serious debt problem waiting to happen. If you cannot recite from memory all the creditors you owe and how much you owe them, you have a credit problem. (more…)

Your New Jersey Real Estate Buying and Selling Team

Buying or selling a home is a monumental transaction, and definitely not one in which you want to go it alone. You cannot be an expert on all matters; therefore, you must assemble an expert team.

The recommended team for the task includes the following six professionals:

1.) Your Real Estate Attorney

Having a real estate lawyer on your side can help make sure your interests are faithfully upheld. And the earlier in the process you involve a real estate lawyer (e.g., pre-contract signing), the more value you gain. One of the greatest benefits of using an attorney is that he or she has an ethical obligation to work on behalf of your best interest.

Plus, your real estate attorney is versed in real estate law and will either personally perform or make sure all procedures are completed in a timely, professional manner. (more…)