There is plenty of information to be found on buying a home.  Whether friend or family member, everyone you talk to seems to have a sage word to share about buying a house.  Unfortunately, some of that advice may not be so sound.  While they might mean well, it is a good idea to temper their “wisdom” with the guidance of an expert like your Summit NJ real estate agent.  Here are a few of the most common home buying myths debunked.

Your credit isn’t perfect so you can’t get financing.
Your credit score is the biggest factor in getting a good rate.  That being said, it doesn’t have to be perfect to get financing.  Scores range between 500 and 850, with most buyers’ scores falling in the range of 600 to 700.  The higher your score, the more options you will have for financing.  Buyers with higher scores will be offered lower rates, but lenders do look at other factors besides your score.  Check your credit score and make sure it’s accurate before you apply for a loan.

Owning is too expensive.
How much are you paying in rent?  Owning a home does cost money but renting isn’t exactly free, either.  As a home owner, you have certain tax benefits that you are not entitled to as a renter.  You will be building equity and putting your payments into something you can one day sell, hopefully at a profit.  Rent money will never come back to you like a mortgage payment will.  Rental rates can, and usually do, go up at the end of your lease while a fixed-rate loan payment doesn’t change.  You should also keep less obvious costs like HOA fees and home maintenance in mind as you budget so that you don’t spend too much.  Your Summit NJ real estate agent can help you figure out how much house you can afford.

You don’t need a realtor.
Buying a house isn’t like going the grocery store.  The price must be negotiated, there are legal aspects to wade through and you might not even know how to find newly listed properties.  Most first-time buyers benefit greatly from the expertise of a buyer’s agent.  Your real estate agent will do things like help you figure out the real value of a property by checking the recent sales in the area, which you would be hard pressed to do on your own.

Read up on some of these myths and see if your still believe them.  You might find that you’ve gotten more misinformation and less fact from all that advice.  Seek the help of a real estate pro to get answers to your questions and divide home buying fact from fiction.

As we age, our housing needs change dramatically.  We no longer need so many bedrooms for our children.  A big yard may not get the use it once did.  Upkeep on a large home can become tiresome or even difficult.  Many senior citizens choose to downsize their home to something a little easier to manage.  The recent additions to the tax credit extension have made this choice even more attractive.  Buyers who have lived in their home for at least 5 consecutive years out of the past 8 may qualify for a significant break on their taxes if the close before the end of April.  When seniors go house hunting, there are a few strategies to keep in mind.

Maintaining long-term independence is the primary goal for most seniors.  Most of us want to stay in our own home as long as we can.  Even if a home buyer is in robust good health at 65, a few years or a major illness can bring about serious changes in mobility.  Certain home features can help an owner remain at home despite these changes.  Single-story living is a must for people with limited mobility.  Ranches and ramblers are an excellent choice.  Harwood floors throughout a home make using a cane or walker much easier, as do wide passageways in baths and halls.  A wall over or microwave located around waist or chest height will prevent bending and stooping to retrieve heavy dishes while cooking.  Ask your Summit NJ real estate agent to suggest more ways you can plan for a long future in your next home.

The community surrounding your new home should be considered as well.  Access to excellent health care close to home is an essential ingredient in maintaining wellness.  A clean, safe public transportation system will make getting around easier for seniors who are no longer able or willing to drive.  Look for senior centers or community groups with lots of planned activities to keep retirement from becoming boring.  Find some worthy non-profit organizations that need volunteers and can benefit from your experience.  Some communities offer services to seniors through the local government or faith-based organizations including needed help with meals, snow and leaf removal or handyman assistance.  Make good use of any help that is offered, especially if it will maintain the value of your largest investment – your home.

Thinking about the future can be unnerving.  Moving out of the family home is a daunting prospect.  But it can also be the start of a new adventure.  Plan well and you will live well longer.

Finding out how much a home costs is trickier than it first sounds, especially for potential first-time home owners.  The asking price is easy enough to find.  Your Summit NJ real estate agent can get that to you in an instant.  The value of the home can be determined by checking area comps and comparing features, a service your agent will provide.  The cost of actually living in the home is another matter.  Estimate the hidden costs of home ownership when you are planning you budget, long before making any offers.  There are several areas which can bump your monthly bills out of your budget.

Utilities
The monthly utilities bills should be the first things you budget.  These will likely make the biggest budgetary dent after the mortgage payment.  If you have never owned a home, you’ll want to seek expert help in gauging these costs.  Call your local power and water companies and find out what the average bill is in a particular neighborhood.  Find out if your current usage is considered high compared to others in a similar home.  If you have a property in mind, ask the seller if they will give you an estimate of the utilities.  Keep in mind, your habits will be the biggest factors in your bills so don’t expect a perfect match.  They may set their winter thermostat on 65 while you keep it at 72.  You can also ask your Summit NJ real estate agent for a ballpark figure considering the age of the home and the type of system it employs. 

Exterior Maintenance
Every home needs at least some exterior maintenance.  The type of exterior will dictate how much.  Brick requires only minimal rinsing with an ordinary hose.  Vinyl siding may need pressure washing after 3 to 5 years to prevent mold and mildew formation.  Wood siding and trim may need to be scraped and painted after only a few years, depending on the climate.  The yard will need upkeep as well, so keep the cost of mowing and watering in mind when looking at properties.

Insurance
Talk to your insurance agent about the type of policy you will need as a home owner and how much the premiums will be.  Certain properties, like waterfront homes, may cost more than others to insure.  Do not under-insure your home.

Incidentals  
Cable, phone and internet services vary widely from town to town and owner to owner.  The local providers can easily quote rates by phone or e-mail.  Look for bundled service packages to save money.

Home ownership means more than just paying the mortgage payment.  Budget all your expenses to avoid future financial woes.

Saving money is on everyone’s minds lately.  As the temperatures drop this winter, why not take advantage of the extra time spent indoors to do a thorough energy audit of your home?  A few simple changes here and there can reduce your monthly energy usage and costs.  Employing some energy-saving techniques around the house may also help you increase your home’s resale value.

Conservation simply means using less energy, like turning off lights when not in use.  Energy efficiency means doing a certain job using less energy, like replacing incandescent light bulbs with compact fluorescents.  Both are important to an overall plan to reduce energy costs and improve your home’s value.  Your Summit NJ real estate agent is an excellent source of information for what improvements are most attractive to buyers in your area.  Here are a few ways you can conserve energy and make your home more efficient.

Check the insulation
There are many areas around your home that might need a little extra insulation.  Check the local building codes or ask your Summit NJ real estate agent what you should have in your home.  Check the attic for missing or damaged insulation.  Inspect basement walls for air and moisture leaks.  See if the water heater needs an extra layer of insulation.  Look for gaps around electrical outlets and heating vents that could be letting in cold outside air.  Use a lighted candle to test windows and doors for drafts and replace old weather stripping.

Service your appliances
Check the owner’s manual for instruction on how and when to have maintenance performed on major appliances.  Change the filters routinely and keep any air-intakes clean.  Vacuum the dryer vents at least once or twice a year.  Use power strips on smaller appliances and electronic equipment.  They keep a small current running, even when they are turned off.  A power strip eliminates this power drain.

Look at your lighting
Switch out those old incandescent bulbs for some compact florescent ones.  You’ll save on energy bills and you won’t have to change burned out bulbs nearly as often.  Put exterior lights on timers and interior lights on dimmers.

Automate your thermostat
If you haven’t already replaced your old thermostat with a programmable one, do it soon.  This small investment, usually under $100, can save a ton of money.  This little device allows you to set different temperatures for different times of day or week.  You can choose a comfortable setting for the hours you’re at home and an energy-saving one for the time when you’re at work.

Just a few simple tricks can put a little more money back in your pocket every month and just might give you a lot more when it’s time to sell.

Plenty of people are having trouble with their credit score these days.  The economic shift has left a wide path of damaged credit as folks struggle to pay their bill while adjusting to pay cuts and job losses.  There is hope for those who credit score have suffered and need a little TLC.  With time, patience and effort you credit score can likely be repaired.

Get your report
There are three major credit reporting bureaus: Experian, EquiFax and TransUnion.  These agencies gather information provided by your creditors and assemble it into one report.  Not all creditors report to all three agencies so there may be slight variations in your scores among the big three.  There are plenty of places on-line to find credit reports so request one and see where you stand for yourself.

Check for errors
Examine your report, looking carefully for errors.  Remember, these bureaus only report the information they are given.  They do nothing to verify it.  So get out your fine-toothed comb and go over it line by line. 

If you find an error or errors, you should file a dispute.  There may be a dispute form included with your report or you may have to write a letter.  Make a copy of the report and circle or highlight inaccuracies.  Provide documentation as to why the information is incorrect.  The bureau must begin to investigate your claim within 30 days of receiving your dispute.  The creditor must verify their information and notify you in writing if the item is to stay on your report.  Anything that cannot be verified by the creditor must be removed.  

Reduce debt
If the information on your reports is not good news but is accurate, there is little you can do but change your behavior and work towards a better score in the future.  Begin by paying off any accounts in collections first then begin to pay down debt.  Set a budget and stick to it.  If you are financially unable to meet your payment obligations, call your creditors and try to make payment arrangements.  You may need additional financial help if your credit problems are severe, like bankruptcy or foreclosures.  A Summit NJ real estate agent may be able to point you towards some qualified assistance.

Reestablish “good” credit
Accounts that are paid on time, every time will help you reestablish your good credit.  Keep a few of your major lines of credit open for this reason, but pay off and close out the rest.  Resist the urge to go off your budget.  The hopes and dreams of your future, like home ownership, depend on your behavior today.

Closing day is usually the point when both buyer and seller can relax.  A typical closing is nothing more than the routine signing of the documents that complete the deal hammered out by both parties and the transfer of money from one to the other.  The closing table is not the place for surprises.  Take precautions to avoid any unpleasant delays of your closing day.

No cold feet
If you are this close to closing on a home, you shouldn’t have cold feet.  Once you have chosen a home, made an offer and gone through the inspection process, you should feel pretty certain about your decision.  Granted, if there are major problems upon final walk through you shouldn’t feel badly about backing out.  But if you are just experiencing a bout of buyer’s panic, do some deep breathing exercises and go to your closing.

Be specific
You contract should specifically detail the particulars of your purchase.  Get everything down on paper and make no assumptions.  Your seller could have invested a great deal of money in something like a chandelier and may have every intention of installing it their new home.  It could also be the one detail that made your choose that house.  Ask your Summit NJ real estate agent exactly what is included in your purchase.

Clean up
Sellers should leave a sparkling home behind for the final walk through.  If you are short on time, hire a service for the heavy work like carpet cleaning.  Once the furniture is out and all the personal effects are gone, imperfections are much more obvious.  Your buyer may ask for concessions if they are left with stained carpet or damaged walls.

Arrive with documents in hand
Ask your Summit NJ real estate agent exactly what documents you need to bring to closing.  Have him write a check list if you must.  If you think you might need it, bring it along.  It’s better to have too many pieces of paper than to be missing the one you need to complete the sale.

Double check the check
Once you have your cashier’s check from your lender, take a hard look at the amount.  Double check both the numbers and the written portions of the check to make sure they match each other and are the exact amount you need to close.  Even bankers commit the occasional typo.

No more negotiations
Once you arrive at the closing table, you’re deal should be complete.  Don’t ask for a new concession or try to renegotiate the price.