Five Aids for Nutley NJ First time Homebuyers

First Time Home Buyers in Nutley NJ

125 Rhoda Ave, Nutley NJ- GREAT First Time Buyer Home

When working with new buyer clients in Nutley NJ – especially the first time homebuyers – I usually find myself fielding more than one question about what they should expect as they progress through the process of buying a home. Everyone already knows the big picture, of course, but in many ways it’s dissimilar from other large purchases they are used to making.

What first time homebuyers experience does differ from other purchasing situations. How it does is something the National Association of REALTORS ® seems to have accidentally answered through their latest study of homebuyers and sellers. The NAR was trying to determine what buyers want from their agents. To answer that, they compiled homebuyers’ “five biggest expectations.” To me, these five tell the tale of why we real estate practitioners are considered all but indispensible to this process…why home buying differs from other major purchases. After all, you don’t need an ‘automobile agent’ to help you shop for a new car!

First is the help we provide in finding the right home to purchase. The Nutley market is an ever-changing target. Properties arrive and disappear almost daily, and each is uniquely appropriate or not depending on a given purchaser’s (especially first time home buyer’s) needs and expectations. Knowing the details of every qualified home that is currently up for sale in our Nutley is pretty nearly a full-time job all by itself. Especially for a first time home buyer, having a knowledgeable pro to provide the legwork is a reassuring place to start.

Once an appealing new home has been found, it’s invaluable to have help in negotiating the price. It’s usually much more comfortable (and likely to succeed) when professionals do the negotiating. They minimize the emotional factors that tend to surface whenever large amounts of money are in discussion. By determining what comparable homes are selling for, your agent gives first time homebuyers (and all homebuyers, for that matter) the most important starting reference point and a reasonable basis from which to proceed.

The same is true when it comes to providing help negotiating the terms of the sale. An experienced professional has been through many sales — experience that alerts them to many details that are easy to overlook but become major issues in the months and years following the sale.

Assisting with the paperwork is listed last on the NAR’s punch list, but many of my clients tell me that to them, it’s just as important as any of the others. There are many forms, and making sure they are properly understood and executed in the legally required timeframe is always important.

All of these, and more, are reasons why you are well served to select a knowledgeable Nutley real estate professional to help you secure the home you are hoping to find. I hope you will give me a call — whether you are a first time homebuyer or experienced real estate homeowner!

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      f you are new to what appears here, please forgive me if I seem to be nagging a bit. Sorry if this sounds like your mother’s sterner voice coming at you (that one from years ago – the one she used when you were especially absent-minded, often accompanied by a scowl). If you’re not guilty, please know this is not directed at you.

      For everyone else who’s been checking in to find out about Nutley home prices or about Nutley real estate in general, you know I’ve been beating the drum about the unusual combination of great real estate buys and low mortgage rates. Ever since the housing crisis created a large overhang of distressed properties, there was a general reluctance to take advantage of the situation – even though in real estate, as in other investments, the adage buy low, sell high is as true today as ever before. I haven’t been shy about pointing out that it couldn’t last forever.

      Given the public perception that residential real estate (including Nutley home prices) were more or less stuck at a low point, there may not have seemed to be much reason to get going.  But opportunities don’t last forever, and markets always change.

      Last week the inevitable apparent sea change seemed to hit the front pages in a big way. One really significant front page in particular: The Wall Street Journal’s. Their news flash was subsequently picked up and amplified on national, then local TV news shows. In other words, the pot truly began to boil.

      The front page, above-the-fold headline was unusually unambiguous: “Home Prices Climb As Supplies Dwindle.” The article elaborated that during the last quarter, home prices rose by the largest percentage in at least seven years. The climb was 2½ % over June — and a full 6% above the previous quarter!

      Demand, the WSJ reported, is up, while supplies are down “sharply.” Main reason: The distressed sales numbers (foreclosures, short sales, etc.) show “better and better prices.” Another reason: investors have been ‘scooping up’ homes.

      Now, of course this mega-blip on the home price radar screen is almost certain to be followed by more ups and downs. Anything is possible; trends don’t move up in a straight line; etc. etc. etc. But if you are one of many who have been waiting for Nutley home prices to drop further, the Journal finding may come as a louder than expected wake-up call. It might also give local home sellers reason to begin getting a bit more stubborn about their own bottom lines.

      If you are beginning to think that the time is ripe for your own family’s move to home ownership, or are a Nutley homeowner who has been patiently waiting for the right time to make a move, I would welcome your call to discuss the current market. If we are to believe The Journal, it looks like some major moves are already underway!

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            The Best Way to Avoid Rent-to-Own Scams

            It may sound too good to be true, but it can be authentic: also known as a ‘Lease Option,’ the Rent-to-Own scenario is one that can help tenants clear major hurdles on their way to home ownership. It can postpone the need to satisfy newly tightened mortgage lending requirements, and eliminate the immediate need for a large down payment. For many who are temporarily in the process of climbing out of credit or cash flow problems, it sounds like a ray of light…

            And if you are thinking it also sounds like a free lunch (or a clearance sale on the Brooklyn Bridge), you’re right to be skeptical. It’s always best to familiarize yourself with all possible outcomes for any major transaction — and a Nutley rent-to-own offer definitely qualifies as one of those!

            Among the key points Nutley  rent-to-own candidates should watch for are online ads that sound too good to be true. They often are.  If an offer says that your credit and income aren’t important, be wary. It could be one of those rent-to-own offers that turn out to be intentionally fraudulent. The supposed owner may not really own the house. A scammer could get the prospective buyer to put up money for what seems like a quite reasonable down payment, but, since he/she is not actually the owner, the money is lost. Working with a reputable agent is one of the best ways you can be sure what you sign is a legitimate contract.

            It is also good to be aware of the seller’s credibility. The seller may offer the renter the option to buy the home, but that will only be possible if the seller is in a position to do so. Should the tenant make payments, but the seller does not, a home could tumble into default or foreclosure before the tenant reaches the purchase point. It could wipe out funds already contributed.

            According to MSN Real Estate, before you get started in the rent-to-own process it is important that “you understand the possible pitfalls”. Without a clear and binding contract, the owner may never intend to sell the renter the property, and simply string the tenant along.  There could be issues about repairs.  If the water heater breaks, for instance — who pays for it?  What about property taxes?  What if there is a lien against the house?  Or mold shows up on an inspection?

            Rent-to-own scenarios can be a real solution for potential buyers who need to buy time, but the abundance of possible pitfalls require thorough consideration.  If you are interested in a Nutley rent-to-own house, be sure to consult with a real estate professional and an attorney.  I am here to help my clients put together great deals; call me if you are looking to buy a home and want to explore the latest Nutley options.

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              NJ No Money Down, USAD Loans Still Available

              The Best 100% Mortgage in New Jersey

               

              A New Jersey USDA Guaranteed Rural Development Home Mortgage Loan is a flexible no down payment government insured program that is growing in popularity for rural areas of Missouri. It’s designed to promote home ownership for residents with low to moderate incomes and who have limited savings for a down payment. The USDA loan will actually lend up to 103.5% of the home’s appraised value and even allow the buyer to include closing costs in the actual loan (appraisal permitting). A common misconception about the USDA loan program is that it’s for farmers, but you’ll find many suburban areas qualify for this program.

               

              Benefits of a USDA Home Loan:

               

              • 103.5% Financing
              • No Down Payment
              • No Mortgage Insurance
              • Great Low Interest Rates
              • Loan Amounts up to $417,000
              • No Cash Reserve Requirements
              • 6% Seller Contribution Limitations
              • 100% Gifted Closing Costs allowed
              • 30 year low fixed rate loan
              • No Prepayment Penalty
              • Primary Residents only (no rentals/investments)
              • Possible to roll closing costs into the loan
              • Non-borrowing spouse must now disclose his/her debt even if not on the loan

               

              To qualify for this loan program, there are two notable requirements that differentiate this program from an FHA or VA loan program.

               

              1. Location:

               

              The home must be located in a New Jersey designated rural area

               

              West Milford NJ  is eligible for USDA Rural Development. But there are other in NJ that have some areas that are not eligible or are completely ineligible. Click the link above and check the home you are interest in to see if your next new home is eligible for a zero down payment mortgage.

               

              2. Income Limits:

               

              Must meet New Jersey USDA adjusted annual household income limits- a maximum 115% of the median income for your area. Meaning your total combined household income cannot be more than this amount.

               

              Qualifying Income: It’s important to note that USDA uses two types of income for qualifying. Household income is the combined adjusted gross income of all people living in the home, regardless if they are applying for or will be on the mortgage. This amount cannot be higher then the county limits listed above. The other income used is the Repayment income. This is income from the actual loan applicants and determines the DTI (debt-to-income) ratio.

               

              Maximum Loan Amount: USDA has not set a maximum loan amount but $417,000 seems to be the consensus by most lenders. Your max loan amount will be determined by your DTI (Debt to Income) ratio. USDA has set 29/41% as the max DTI, but often allow up to 47% with a GUS automated approval and a FICO score over 660.

              Call Me Today For More Information 973-846-0065

               

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                  Nutley Map– Home Prices in Nutley are at an all time low

                  – Mortgage Rates are as low as they have been in years

                  – Nutleys proximity to NYC (Commuters)

                  – Great Town with a fantastic school system

                  – Nutleys Park system rivals any other towns in Northern NJ

                  – Low Crime Rate

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                    If you are organized and willing to put in some serious spadework, buying a Nutley foreclosure can save you thousands of dollars.  A new wave of foreclosures could be heading our way later this year. According to RealtyTrac, the leading source of foreclosure statistics, one in every 665 national housing units received a foreclosure filing in June. More foreclosures mean more opportunities; but it also means that more buyers will begin to think seriously about going after them. In other words – more competition.

                    If you have never looked into what is involved in snagging one of the foreclosures in Nutley, a few basics will greatly improve your chances for success:

                    1.Do Your Research So You Can Act Quickly.

                    The foreclosure market performs differently from the traditional market. Arming yourself with accurate comps and knowledge of Nutley Real Estate trends will enable you to recognize the right opportunity as soon as it arises – ideally, before other buyers catch wind of it. Working with a knowledgeable agent who keeps you informed is the quickest way to get up to speed. It will help you avoid being dragged into bidding wars with other deal-shopping buyers. Since under-bidding will cause you to miss the best opportunities, and over-bidding will defeat your whole purpose, up-to-the-moment market knowledge is essential for formulating a canny offer.

                    2.Weigh in With Cash.

                    Time is an important factor in buying a Nutley foreclosure. Your goal is the same as the seller’s: to close the sale as quickly as possible. Naturally, paying cash up front is the simplest route to a speedy closing. If you are buying as an investment, that means targeting only properties that are within your financial reach. As Ron Peltier of HomeServices of America puts it, “A cash buyer who can close in 10 days can certainly get the best deal.”  Since closing on a house via traditional mortgage can take anywhere from 30 to 60 days, it is clear which route sellers prefer.

                    3. Create Clean Offers.

                    If, like many of my clients, you can’t really afford to propose an all-cash deal, you can still create an offer that lands your foreclosure. Writing a clean offer – one with simple terms and serious cash down — can bring a favorable reaction. Let’s face it: bank officers don’t want to fuss with complicated terms or repairs. A buyer with 20% down, a confirming loan and an “as-is” offer will get a lot more consideration than a buyer with an FHA loan and a minimal deposit. Success means targeting foreclosures at a price point where you can afford to put as much down as possible…then being ready to get dirty and make any needed repairs yourself.

                    As with any vigorous market, participants need to play by the rules or else be stuck on the sidelines.  If you are considering buying a local foreclosure and are looking for an experienced agent to stand by your side, call me — and let’s get to work!

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