Justin Bonura
Division Manager - New Jersey And New York Mortgage Officer NMLS#: 73184
As you well know, buying a home is not only one of the most important financial decisions of your life, but it’s also one of the most expensive. Not only are buyers putting down a large sum of money for their down payment, but they also have to take care of moving costs, renovations (if needed), furniture, earnest money deposit, and lastly…closing costs.
Closing costs are usually the second-most expensive part of the home-buying process. Since they typically cost somewhere between 2-5% of the total purchase price, buyers are trying to find ways to cut back on these costs and save as much money as possible. But, how do they go about doing so?
Listed below are the five need-to-know tips for lowering your closing costs…
Tip #1: Ask if the Seller or Your Realtor Can Contribute To Closing Costs
Sometimes, if it means the difference between getting the deal done or losing it and starting the process all over again, a seller might offer a concession to the buyer to help pay for some or all of the closing costs. This might work if the house has been on the market for a long time and if you were the only interested party. You also have the option of asking your real estate agent to use part of their commission to help out as well, if you feel comfortable asking them.
Tip #2: Shop for Services When You Can To Reduce Your Closing Costs
Once you’ve spoken to your mortgage lender and they’ve given you ...
Whether you’re planning your dream wedding or planning to buy your dream home, both are large expenses and major life events that can seem overwhelming to tackle at the same time. Purchasing a home will require paying a down payment and closing costs, while planning your wedding will include payments to your venue, vendors, and even a honeymoon. While couples today think that it might be far-fetched to accomplish both at the same time, think again. You can use these helpful tips to get you down the aisle AND claim the keys to your new home…
Tip #1: Figure Out Your Budget
If you plan on paying for a wedding and a new home at the same time, your first step should be to sit down together as a couple and figure out what your budget is going to be. Talk to each other about expenses and how much you’d realistically like to spend on both. You can use a mortgage calculator to help give you an idea of what you can afford, or you could always speak to a loan officer to see what you’d be pre-approved for.
Not only should the couple look at their own savings, but factor in any money or assistance you might be getting from your family or friends to help you achieve both things. When you’ve figured out your budget, it’s also important to discuss your “must-have’s” and also the things you’re willing to cut back on for both the wedding and for your future home.
Tip #2: Consider a Home-Buying ...
Are you a self-employed borrower? Do you own your own business, and have maybe struggled to obtain financing? If you’ve experienced difficulty trying to do so, it might be best to try and benefit from a non-qualified mortgage (non-QM) loan.
What is a non-QM loan?
A non-QM loan is any home loan that doesn’t meet the regular standards of a qualified mortgage. But, keep in mind that not every lender will offer this. NJ Lenders Corp. is, in fact, a non-QM lender, and they have more flexibility in the underwriting process to work with any borrower that other lenders might label as risky.
Who exactly can benefit from a non-QM loan?
- Self-employed borrowers
- Real estate investors
- Foreign nationals
- Prime borrowers
- Near or non-prime borrowers
- Borrowers with significant assets
The non-QM loan program will target credit-worthy borrowers who are self-employed, have non-traditional incomes, have assets and no income, or have had difficulty qualifying for a traditional mortgage. It can be used for rate-and-term refinances, cash-out refinances, or a new home purchase for owner-occupied, second homes, or investment homes.
Expected growth for non-QM loans in 2019
One of the bright spots for the mortgage industry in 2019 is the expected increase of non-QM loans. According to the Origination ...
For a lot of New Jersey home buyers, the down payment can be the biggest hurdle to buying a home. But it might only be a perceived hurdle. The truth is there are several mortgage programs available in New Jersey that offer low down-payment requirements.
Additionally, borrowers might be able to obtain gift money from a family member or borrower from a 401k. Those are just some of the ways you could buy a home in New Jersey with little to no money down.
Buying a Home With Little Money Down, Using FHA
House prices across New Jersey have risen steadily over the last few years. According to the real estate information service Zillow, the median home value for the state rose 5% over the last 12 months alone (ending in October 2017).
As a result, many home buyers in New Jersey are seeking ways to reduce their upfront, out-of-pocket expenses when buying a house. Some prefer to buy a house in New Jersey with little to no money down. Here’s how you might accomplish that goal.
Despite common misconceptions, you don’t necessarily need a down payment of 20% or more when buying a house in New Jersey. There are mortgage loans available that offer a much lower upfront investment.
The FHA loan program is one of those financing strategies that offers a low down payment. The Department of Housing and Urban Development (HUD), which manages this particular mortgage program, allows borrowers to make a down payment as low as ...
Are you a Generation Zer? Have you thought about purchasing a home, but thought it wasn’t possible? A recent 2019 Homebuyer Insights Report showed that nearly 60% of 18-to-23-year-olds would like to buy a home within the next five years. It also reported that another 52% of Gen Zers have already started to save up to purchase a home. So, if you’ve thought about it, or maybe deemed that you couldn’t do it, think again, as we provide you with saving tips to buy that home sooner than you think.
Tip #1: Find The Right Savings Account For You
If you’re looking into a savings account, it is super important that you’re choosing the right one for what you’re trying to achieve. If you are in the beginning stages of saving, it might be best to get an account that doesn’t require a minimum balance, that way you can start to earn interest immediately, regardless of how much you have saved in the bank. Try to open an account with a high interest rate, and then you can earn more on the funds you save.
Tip #2: Have Portions Of Your Paychecks Automated Into Your Savings
If you’re receiving a paycheck on a weekly or bi-weekly basis, it’s a great idea to have a portion of that check go straight to your savings account. If you’re not comfortable doing that for every check you receive, you could also see if it’s possible to have auto-transfers from checking-to-savings at least once or twice a month. If ...
