Buying your first home –exciting

Buying your first home can be both exciting and stressful. It’s a big move as well as a big commitment. It’s one of the largest financial decisions made by the any consumer. NJ mortgage rates have made it more affordable than ever Below are some answers to some of the more typical questions asked by a first time home buyer.
1. Should I purchase or should I continue to rent? There have always been concerns about this question and especially in today’s non stable economy. One of the main reasons to purchase a home rather than continuing to rent is that the mortgage payment every month goes toward paying down an asset you will eventually own. A rent check goes toward paying down an asset for someone else. There are tax advantages to purchasing real estate, as well. A homeowner can write off the interest and property taxes paid there by reducing the tax obligation. At this time with low property values and favorable nj mortgage rates, buying is the best option.
2. Should I use a professional to help me in the process? A real estate agent has much experience and skill on their side that can greatly benefit a first time home buyer. A first time homebuyer will especially need a bit of guidance in terms of where to look, what to get, how to handle the contract and other paperwork. In New Jersey the seller generally pays the agent’s commission, and a seasoned realtor with enough expertise can save his or her first time buyer money by making sure they are getting a good valued home.
3. How much money will I need to purchase a home? Today if qualified with low nj mortgage rates, a down payment can be as little as 3.5 % with closing cost as much as 4 % of the loan amount. These are federal insured programs that will help first time home buyers with smaller down payments, but 20 % down payments will eliminate any required mortgage insurance. Twenty percent or larger down payment gives homeowners more equity in the very beginning. Mortgage companies feel less risk loaning money to home buyers who have equity from the beginning.
4. What is the most common term of a mortgage? One of the most common mortgage terms is thirty years. The next most common mortgage term is fifteen years. Today due to nj mortgage rates being so favorable it’s smart to opt for a shorter term mortgage like a 25 or even a 20 year term. But be sure the payment fits wisely in your budget.