Are You Ready to Buy Your First NJ Home?

NJ home

In the US, homeownership has come to symbolize achieving part of the American Dream. Owning a home can offer independence, the opportunity to start a family, and a place to belong in the world. But owning a home isn’t for everyone—at least not right away. If you are considering purchasing your first NJ home, there are a lot of things to consider before you take the plunge. After all, the decision to own a home is a huge investment that will impact your life for years to come. If you are on the fence about homeownership, here are the top signs you are ready to buy a home.

1. You Plan to Stay in the Same Geographic Area

Being happy with where you are is a great sign you might be ready to plant roots and buy a home in your area. On the other hand, if you are planning to move in a few years or are unhappy with your current location, don’t purchase a home. With the cost of buying a home, between a down payment and closing costs, it doesn’t make sense to buy a home only to turn around and do the whole process over again in two or three years. You could also end up in the difficult position of being unable to sell your home, or having to sell your home for less than what you paid for it. For these reasons, it is important to only buy a home you plan to be in for a decent amount of time.

2. Your Finances are in Order

There are three financial aspects of the home buying process that you will need to be ready for: the down payment, the closing costs and associated fees, and the mortgage itself. For the down payment and the closing costs, you will need to have money in hand to complete a home purchase. Typically, a down payment is 20% of the purchase price and closing costs can range anywhere from 2-3% of the price of the home. You will also need to make sure you have a clear credit history with a decent credit score in order to secure a mortgage with good terms. But the financial responsibility of homeownership extends beyond your mortgage. You need to make sure that your income can support not only your mortgage, but home upkeep, property taxes, utilities, regular living costs, debt payments, and unplanned expenses.

3. You Are OK With the Idea of Home Maintenance

When you own your own home, you can’t call your landlord if something needs to be repaired. Every house will require repairs, maintenance, and improvements—and these can be costly and time consuming. All the time you spend on general upkeep of your home is less time spent doing the things you did pre-homeownership. This can impact your lifestyle. If spending the weekend painting the living room sounds terrible to you, you may want to reconsider a lower-maintenance housing option, like renting.

4. You Are Realistic About Your Home Goals

This means you know how much house you can afford as well as how much homes in your area are being sold for. A real estate agent can help you with this, but you need to know what kind of buying power you are bringing to the table and what kind of home will fit your budget best. Start going to open houses to get an understanding of what you get for the listing price. Look into a wide array of different kinds of houses in the neighborhoods you are interested in. How many bedrooms and bathrooms are there? Are there any special features? Is it up-to-date or does it need some work? All of these factors will help you determine what goes into a list price. Work with a real estate agent to get information about the estimated costs of repairs so you know exactly what you’re getting into before you buy a home. Buying a good home in your price range is key to homeowner success.

Buying a home can seem intimidating—and for good reason. The purchasing of a home is likely one of the biggest investments you will ever make. The rewards of owning your own space are innumerable, but it is also important to understand the work and commitment that goes into owning a home. If you need help working through the minutiae of buying a NJ home, Veitengruber Law is happy to help demystify the home buying process as well as make sure you are getting the most out of your real estate contract.

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