5 Tips To Buy An Eastern Pennsylvania or New Jersey Home You Can Afford

The housing market in Eastern Pennsylvania and New Jersey continues to recover from the most recent recession.  Home prices continue to rise and the number of foreclosures continues to fall on a monthly basis.  If you are looking to buy a home, then 2016 is the year to make your move.  However, you first need to know how much you can afford before making one of the biggest purchases of your life.

Here are 5 tips to help you buy a home in Eastern Pennsylvania or New Jersey that you can afford.

1. Know Your Credit Score- Before you start your home search begin by checking your credit score; the interest rate you will qualify for will be based on this score. The higher you score the lower you can expect your mortgage interest rate to be, which could mean a substantially lower monthly payment. Many financial experts recommend that your monthly mortgage payment not be higher than 30% of your monthly income.
2. Down Payment- It is ideal to put down at least 20% towards your purchase price. If you have less than 20% down you can expect to pay private mortgage insurance (PMI). This is insurance for the lender in the instance that you are unable to make your monthly payments. You can expect PMI to cost you anywhere from 0.3% to as high as 1.50% of your mortgage loan on a monthly basis.
3. Unforeseen Expenses- If you can afford your monthly mortgage payment, can you afford any unforeseen expenses that arise as a homeowner? Owning your own home means you are responsible for fixing anything that breaks. Beyond repairs, you also need to consider the price of home insurance, property taxes, and any association fees.
4. Right Realtor- Once your finances are in order it is time to find an experienced Realtor who is familiar with the area you are looking to purchase a home in. The Silva Group is experienced in all aspects of real estate in Eastern Pennsylvania and New Jersey. After finding the right Realtor for you let them know of your general needs when it comes to owning a home, such as where you want to live, and how many bedrooms and bathrooms you will need.
5. Time To Buy- Once you find the home that is right for you and meets your needs, take a step back and do not make an offer based on that of emotions. Remain rational and do not put an offer on a home that is over the price you feel comfortable paying. Restrain from getting caught up in bidding wars.

Purchasing a home is a big step and it’s easier to get in over your head if you do not know what to expect. It is important to know how much you can comfortably afford and to work with an experienced Realtor.

The Silva Group offers unbeatable service to all clients in Eastern Pennsylvania and New Jersey. Let us help you buy your next home. Contact Us today with all of your real estate needs or call us direct at (610) 520-0100.