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For most people, purchasing a home is
more than a strictly financial decision. Buying a house can
represent so much more. Whether it is finally realizing the joy of
raising a family, celebrating a long awaited retirement, relocating
to pursue better employment opportunities or buying a vacation house
to hold cherished family gatherings, for many people buying a home
marks a new chapter in their life. In fact, the
2007 Profile of
New Jersey Home Buyers and Sellers found the number one reason
people look to purchase a home is their desire to establish a
household. As surprising as it may sound, the tax benefits and
financial security owning home provides ranked near the bottom.
Although buying a house remains a sound investment, for the majority
of people it's really about having a place to call their own.
 Buyers
shouldn't let all of the current negative perceptions about real
estate influence their real estate decisions. In the end,
individuals need to assess their own personal circumstances and
decide if now is the right time for them to realize their dream of
homeownership.
When buying a
home or property, it is important to work with a knowledgeable
professional. According to the
2007 New Jersey Profile of Home Buyers and Sellers survey,
89 percent of home buyers used a real estate professional during
their home search. REALTORS® provide expertise on market
conditions, property conditions, and may other facets of a real
estate transaction. View more information on
finding a REALTOR® to guide you
through the process. Also check out NJAR®'s new interactive map! A valuable tool for home buyers, the map offers statistics about average home sale prices, median household income, percentage of high school graduates and bachelor's degrees, and other key demographics, all by rolling over specific county areas.
The more information you provide your REALTOR®, the
easier it will be for him or her to narrow your search and evaluate
your options. Keep in mind that not all licensees are REALTORS®.
Only those who are members of the NATIONAL ASSOCIATION OF REALTORS®
may use the term REALTOR®. Below are a few tips to
consider once you choose your REALTOR®:
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Research & Determine Your Preferences- First
establish whether it is the right time for you to buy. REALTORS®
can help you and offer perspective on this decision. Then
determine what type of property you are looking for. (A
single-family home, condominium, townhouse, commercial property,
etc...) Think about your desired location. The
2007 New Jersey Profile of Home Buyers and Sellers
survey reported that 30 percent of New Jersey buyers found their
home through the Internet. Knowing the answers to specific
questions will help your REALTOR® assist you.
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Be Honest and Upfront
- The more you share with your
REALTOR®, the easier it will be for him or her to
help you find what you are looking for. Be upfront about what
you like and dislike in looking for a home. When meeting with
your REALTOR®, don't withhold income information.
This information is important as it helps determine how much you
can afford to spend.
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Consult Mortgage Guides- Take advantage of the
home mortgage resources available through REALTOR.com, such
as a monthly payment calculator, mortgage rates and quotes,
educational tools, and more. Below is a list of more helpful
information concerning mortgages.
-
Obtain the "Understanding Mortgages"
brochures from the NATIONAL ASSOCIATION OF REALTORS®:
Traditional Mortgages,
Specialty (Nontraditional) Mortgages and
Federal Housing Administration (FHA) Mortgages
-
View the new
FHA loan limits passed as part of the 2008 National
Economic Stimulus package. To find the Fannie Mae and
Freddie Mac conforming loan limits in your desired area,
choose "Fannie/Freddie" in the drop-down menu called "Limit
Type."
On July 30, 2008 President Bush signed
the Housing and Economic Recovery Act (H.R. 3221) into law.
As part of the housing bill, Congress has created a new,
temporary tax credit to provide an incentive for first-time
home buyers. The $7,500 credit will be available for the
purchase of principal residences on or after April 9, 2008
and before July 1, 2009. PLEASE NOTE: THIS INFORMATION IS
ACCURATE BASED ON INFORMATION AVAILABLE AS OF JULY 30, 2008.
AS WITH ANY TAX LAW CHANGE, CHECK WITH A TAX ADVISOR IF
THERE ARE QUESTIONS ABOUT USING THIS PROVISION.
For more information regarding the first-time home buyer tax
credit, view a quick facts chart or
download the Q&A.
-
Note that as of June 1, 2008, Fannie
Mae's policy change allows borrowers to acquire loans up to
95 percent loan-to-value. Prior to the change, borrowers
could only get loans up to 90 percent of the home value.
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Make a Checklist
- Determine what factors you will be looking for
in shopping for a home and separate them into absolutes,
electives, and frills. Include essentials on the absolutes list,
such as how many bedrooms and bathrooms, a basement, garage,
etc. The electives list should include items that you would like
to have if you can afford and the frills list is for extras that
are nice but not necessary.
Based on the information you provide, your
REALTOR®
will tailor your home search to your needs and capabilities,
offering insight about real estate values, property taxes,
utility costs, and other factors that may affect your decision
to buy.
Resources
A Look at Mortgage Options in Today's Market
Home Buying and Selling 101:
Steps
New Jersey Residents Should Take to Make Sound Real Estate
Decisions
Seven Things You Need to Know About
Real Estate in New Jersey
10 Steps to Homeownership
Environmental Resources
Home buying guides from Fannie Mae
Housing
Opportunity Resource Guide
REALTOR.com
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