Buyer Tips Archives - Page 4 of 5 - The Nick Borrero Team

Things to consider before buying

Purchasing a home can be challenging for a newbie. All things considered, there are countless advances,
undertakings, and necessities, and you might be restless about committing a costly error. Be that as it
may, first-time homebuyers partake in a few exceptional benefits made to support new contestants in
the housing market. Here is a summary of what you want to consider before you purchase and what you
can anticipate from the purchasing system itself, in addition to tips to make life more straightforward
after you purchase your most memorable home.

6 Questions to Consider Before You Buy

Your initial step is to figure out what your drawn-out objectives are and how house-buying finds a place with
those objectives. Maybe you’re just hoping to change every one of those “squandered” lease installments
into contract installments that give you something unmistakable: value. Likewise, purchasing a home can be
wise speculation. Reducing your higher perspective homeownership objectives will point you in the correct
heading. The following are six inquiries to consider:

1. How’s Your Financial Health?
Before navigating pages of online postings or falling head over heels for your fantasy home, do a serious
review of your funds. You should be ready for both the buying and the continuous costs of a home.

2. What Type of Home Will Best Suit Your Needs?
You have various choices while buying a private property: a customary single-family home, a duplex, a condo,
a townhouse, a co-usable, or a multifamily working with two to four units. Every choice has its upsides and
downsides, contingent upon your home ownership objectives, so you want to conclude which kind of
property will assist you with arriving at those objectives. You can save money on the price tag in any

classification by picking a project, yet be cautioned: how much time, sweat value, and cash expected to
transform a project into your fantasy home may be significantly beyond anything you expected.

3. Which Specific Home Features Do You Want?
While it’s great to hold some adaptability in this rundown, you’re making maybe the greatest acquisition of
your life. Your rundown ought to incorporate fundamental cravings, similar to estimate and neighborhood,
right down to more modest subtleties like restroom design and a kitchen fitted with sturdy machines.
Filtering land sites can assist you with getting a feeling of the valuing and accessibility of properties offering
the elements that mean a lot to you.

4. The amount of Mortgage Do You Qualify for?
Before you begin shopping, it’s vital to find out how much a moneylender will give you to buy your most
memorable home. You might figure you can manage a $300,000 home, yet moneylenders might believe

you’re just great for $200,000 because of variables like how much other obligation you have, your month-to-
month payments, and how long you’ve been at your present place of employment. What’s more, numerous

realtors won’t invest energy with clients who haven’t explained the amount they can bear to spend.
Make a point to get pre-supported for credit before putting a proposal on a home. In many cases, merchants
won’t engage a deal that is not joined by a home loan pre-endorsement. You do this by applying for a home
loan and finishing the essential desk work. It is useful to look for a bank and to look at loan costs and charges
by utilizing an instrument like our home loan number cruncher or Google look.

5. The amount Home Can You Afford?
At times a bank will give you a credit for more houses than you truly need to pay for. Since a bank says it will
loan you $300,000 doesn’t imply that you ought to get that much. Some first-time homebuyers commit this
error and end up “house poor” with minimal passed on after they make their month-to-month contract
installment to take care of different expenses, like a dress, utilities, excursions, diversion, or even food.
House shopping with a more modest spending plan than you are supported for won’t just make your
monetary life more adaptable, however, it can likewise assist you in the present hot lodging with promotion.
At present in many business sectors houses are selling for over their asking cost. On the off chance that you
shop with sufficient space for error, you may not wind up losing an offering battle on your fantasy house.

6. Who Will Help You Through the Homebuying Process?
A realtor will assist you with finding homes that address your issues and are in your cost range, then meet
with you to see those homes. Whenever you’ve picked a home to purchase, these experts can help you in
arranging the whole buying process, including making a deal, getting credit, and finishing desk work. A decent
realtor’s skill can shield you from any entanglements that you could experience during the cycle. Most
specialists get a commission, paid from the merchant’s returns.

What to avoid with loan applications

Following a loan application, avoid these things.

There are several important considerations to make when you’ve applied for a mortgage to buy a home. Even though it’s thrilling to begin considering moving in and decorating, use caution when making any significant purchases. Following your loan application, there are a few things you should probably avoid.

Avoid making large cash deposits.

Cash is hard to track down, and lenders need to know where you got your money. Talk with your loan officer about how to properly record your transactions before you deposit any money into your accounts.

Avoid Making Any Major Purchases

You could lose your loan if you make purchases that are not strictly related to your home. Lenders may raise concerns about any sizable purchases. Debt-to-income ratios are higher for those with new debt (how much debt you have compared to your monthly income). Because riskier loans have higher ratios, borrowers might no longer be eligible for their mortgages. Avoid the urge to make any significant purchases, including those for appliances or furnishings.

Loans shouldn’t be co-signed for anyone.

You take on responsibility for the loan’s success and repayment when you co-sign for it. Higher debt-to-income ratios result from that obligation. Your lender will have to count the payments against you even if you pledge that you won’t be the one making them.

Avoid changing bank accounts.

Lenders must locate and keep track of your assets. When all of your accounts are consistent, that work is significantly simpler. Speak with your loan officer prior to making any financial transfers.

Maintain All Accounts

Many purchasers think that being authorized means they are less risky and have less accessible credit. This can’t be. Your credit history’s length and depth (as opposed to just your payment history) and the proportion of credit you’ve used overall to total credit available make up a significant portion of your credit score. Both of those parts of your score are negatively impacted by closing accounts.

In conclusion, be honest with your lender when discussing any changes. Any changes to your income, assets, or credit should be carefully considered and handled so that your home loan can still be approved. Inform your lender as well if your employment situation has changed recently. In the end, it’s always preferable to be completely honest and open with your loan officer before making any financial decisions.

5 Ways to Get to Know Your Neighborhood and Local Market

5 Ways to Get to Know Your Neighborhood and Local Market

Finding quality leads and generating new business, as any real estate agent knows, begins with cultivating pre-existing relationships. However, generating new leads can be difficult if you do not already have a large referral base or if you are new to the area.

While new agents tend to focus on open houses and cold calling or spend a lot of money on print advertising, successful agents are able to cultivate referrals by working alongside neighbors and collaborators.

Please introduce yourself

Choose three community leaders you’d like to meet more closely and either ask for introductions or send an email introducing yourself. Have trouble coming up with something to say? You can send them a link that you believe is relevant to their work, congratulate them on a recent accomplishment, or simply let them know you’ve noticed they’re making a difference in the community.

Keep in touch

When was the last time you communicated with a previous client? If you don’t already have a spreadsheet or tracking system in place to remind you of birthdays, holidays, and regular checkpoints, make one now and be proactive about staying in their lives.

Demonstrate that you care

While you cannot attend every community event, choosing a few to attend throughout the year will help you meet people and build rapport. If you don’t already have a community volunteer event planned, visit your community’s website or social media pages to find an upcoming cause that fits your passion and your schedule.

Change notes

Because real estate professionals succeed more when they understand their market, find a partner in your market with whom you can share notes—and vice versa. Connecting with other agents, even if they are technically your competition, is a great way to learn from their successes and establish yourself as a peer.

Consider yourself a journalist.

Information about your market can come from a variety of sources. As if you were an investigative journalist, approach your market. Sign up for community newsletters, compile a list of neighborhood newspapers, and see if there are any upcoming town hall meetings where you could learn something new or form a new relationship.

5 Tips you’ll need when moving during COVID-19

5 tips you’ll need when moving during COVID-19

In these times, health is the number one priority, and we always want to ensure that we follow extra safety precautions and minimize social contact. Moving requires tons of work and people involved during your move out.

With the recent surge of COVID-19, everyone needs the extra step to be careful. If you plan to move, you can still put it off and make a little extra planning and a few precautionary steps.

But if you will be moving, here are some tips to help you progress as safe, seamless, and stress-free as possible.

Make it DIY if possible

Even though most states have their own moving services considered “essential when moving,” with the impending COVID-19, you can try to manage the move yourself. Most companies have reduced their staff, and some closed businesses entirely, so you can try to cut down the number of people you come in contact with/

If you really need your help, know the companies operating in your area. Ask them about sanitation procedures, know if suppliers have the essential supplies (like masks, gloves, and booties), and for their reasonable cancellation policy in the case of an event and need to cancel your plans.

Minimize your Contact

Moving day involves plenty of people. If you’re working with a moving company, ask for a virtual quote and ask if the company offers fully contactless services.

You can give a smile and generous tips that you can send through a contactless digital platform like PayPal and Venmo.

Take extra caution when moving

Taking extra sanitary precautions is essential for you and the moving company. Always wear your mask, gloves, and booties. And disinfect frequently touched objects and surfaces like doorknobs and handles.

You can also place soap and paper towels near your sinks and a hand sanitizer or disinfect alcohol by the doors. And buy new boxes. The coronavirus has been found to live on cardboard for up to 24 hours, so this might not be the time to pick up used moving supplies from recycling stores. You can also use boxes that you already have in your home.

Be transparent and flexible

Before your moving day, reach out to your neighbors – especially if you live in an apartment building. This is to let them know your date when you’ll be moving to give them a head-up and avoid unnecessary contact and let you know if the timing will be a problem.

If you or any family members are experiencing coronavirus symptoms, postpone your moving plans. Though rescheduling is a pain, the health and safety of your community come first.

Help those who are in need and lighten your load.

There are millions of people who are struggling with this COVID-19 pandemic. You can donate your shelf-stable items to a local food bank or a national organization that works with professional moving companies and their customers to feed those in need.

Moving is hard, but with the current situation, it’s extremely tough. Take extra precautions when you move and you’ll be able to get past this struggle.

Is Moving This Year a Good Call? Questions to Ask Yourself!

Are you thinking of making a move this year? If you’re wondering about it, but not sure where to start or if it’s the right time, you are not alone. We all experience times when we’re not sure which option will be the best for us and our loved ones. But here’s a simple checklist to get started. These are questions to ask yourself to help you narrow down why you want to move and if you’re ready.

Question 1: What are you hoping to gain?

Start with this question: what is it I am hoping to gain with this move? Another way to word it is: what is missing from my current home situation? This will help you navigate what exactly your goal is with a move. Sometimes we have an urge for a change of scenery. There’s nothing wrong with that being the reason. However, moves can be huge stressors as well, so make sure that what you are going to gain is worth the work and stress of moving. Are you hoping to gain more space to spread out? Perhaps your job situation has shifted, and you want a designated home office. Or maybe you and your partner are wanting to grow your family. Or are you hoping to gain more outdoor space and quiet? Maybe then you are considering moving out of a city or suburb to a country location. Maybe you are hoping to gain greater sense of community by moving closer to friends or family. Knowing your “why” will help you stay on track.

Question 2: What are your priorities?

Once you know this why of moving and what large scale aspect(s) you are hoping to gain, begin to work on narrowing down your priorities. This can include a “non-negotiables” list as well as a secondary “wish” list. If you are moving to gain more space, “home office” or “yard” might go in your non-negotiables. But aspects like fireplace, chef’s kitchen, or jacuzzi tub in the master bath might fall on your wish list. And even with the larger aspects, you want to know before you start looking what your top priorities are. Because you might have to compromise even on these larger aspects. For example, you might have to choose between being super close to family or having a large yard if the area is more populated. Knowing the top aspects will help you navigate those decisions and compromises.

Question 3: What is your overall budget?

Thinking about budget may not be the most fun task but it is certainly one of the most vital. And staying within budget will directly affect your long-term financial goals and your stress levels moving forward. Take the time to sit and plan out your budget for a mortgage but also for the extra expenses associated with moving, such as closing costs, moving fees, and initial maintenance tasks. It’s also good practice to factor in long term financial goals when planning a move. This will prevent you from biting off more than you can feasibly chew. For example, maybe a long-term goal is retiring at a certain age or travelling more in the coming years. Factor in those extra retirement savings or that travel account so you don’t overspend on a mortgage, limiting those other goals.

Start with these questions to evaluate if now is a good time for a move. And when you’re ready to find your next home, I am here to help you find the perfect one!

Steps to Take Towards Purchasing a Home in 2022

New Year’s is a great time for reflection and setting new goals and intentions for the upcoming year. Even if you don’t subscribe to making resolutions, it can still be a nice marker of time and a chance to reorient and regroup around your goals. If one of those goals happens to be buying a home this year, here are a few steps to take now to ensure you’re ready!

1. Start (or keep) saving

Buying a house is an expensive process. Not only is there a down payment to consider but there are other costs associated with it. You’ll need funds for closing costs, moving expenses, and any initial projects you might want to tackle. You’ll also have to consider HOA fees, homeowner’s insurance, and property taxes. So, if you’re already saving, great! Keep it up. If not, start that now while you get your other ducks in a row.

2. Keep an open mind

While we all have our dreams in mind when house-hunting, stay open to other possibilities. Stay flexible in your location, amenities and must haves. The current market is still a seller’s market, meaning there’s lower inventory and higher prices. So, staying a bit more flexible and open with your must-haves will broaden your options and lead you to a great place sooner. If you only look at turnkey properties, you might miss great homes in your price range with more square footage or bigger outdoor spaces. Or if you are set in stone about a single family detached home, you might miss that townhouse in your dream location.

3. Be firm in your budget

Once you know how much your maximum budget is for purchasing a home, stick with it. It’s tempting to want to win at all costs, especially if there are multiple offers on the table. But if you throw in extra cash attempting to win the bid, you might end up with more mortgage than you can comfortably handle. One pro tip is to look only at houses slightly below your maximum price point. Let’s say you can feasibly afford a $300,000 home. Perhaps only look for homes $250,000-$275,000. This way you won’t be as tempted to go over budget if you need a little extra to throw in for leverage during a bidding war situation.

4. Stick with it

In today’s market and real estate climate, you might not land your dream home on the first try. But don’t get discouraged. That’s completely normal in a seller’s market. Stick with it and be persistent to achieve your goal. And with a reliable and experienced real estate professional beside you every step of the way, you’ll be successful in the end. They can help you navigate composing an offer, negotiating the details of a contract and closing the deal.

If you hope to make this the year you invest in real estate and start growing your equity, give me a call and let’s get started.

4 TIPS FOR MOVING INTO A NEW HOME

Moving into a new home can be an exciting and overwhelming process. You’ll be eager to unpack, decorate, and invite loved ones over for a housewarming party. While you’re getting settled, keep these tips in mind.

1. Change The Locks

Even if you’re not worried about the previous owner, there’s no way to know who may have a copy of your house keys. As a safety precaution, I recommend changing our your locks and making new keys. Nothing beats the feeling of being safe at home and knowing no one out there has your keys except for you.

2. Make A Plan For What Goes Where

Moving is already a stressful process, so a good way to avoid further frustration is to determine where your belongings will go in your new home. Measure your furniture and use painters tape to map out items in your new space. This will help you know exactly where everything goes and save time once the movers have pulled away.

3. Make Repairs A Priority

Your home inspection should give you a general idea of what needs to be repaired in your home, but it’s a good idea to do your own walk-through and take photos. You probably won’t get to all the repairs right away, but you can prioritize the more important projects and keep a running list of items to complete over time.

4. Get To Know Your Neighbors

Meeting your neighbors is a lot less awkward when done soon after moving in. While you don’t need to knock on every door with a dozen cookies, be sure to say hello when you see your neighbors in passing. Who knows, you may make some great new friends!

While there’s so much to do when moving into a new home, prioritizing these items can help to make the process a little easier.

Why NOT to Skip the Home Appraisal and Inspection When Buying in NJ

It’s tempting to cut corners in order to stand out in a crowded housing market. As a buyer in New Jersey, you want your offer to win out. You may think offering to waive the home appraisal or home inspection is a good way to propel you to the top of the list. However, this could cost you more later on. While it may be annoying to keep these steps, here are a few reasons to stick with them.

Skipping the appraisal could cause an appraisal gap.

The appraisal is a tool lenders use to fairly evaluate the value of the home before they lend you the money to purchase it. Appraisals are done by third parties and are unbiased. They let the bank know what is fair. However, because of bidding wars, which can drive up the sale price of a home, the home could end up selling for more than it was appraised for. This is called the appraisal gap.

This could cause you to pay more out of pocket.

When this gap happens, often sellers will require you to pay the extra that the bank won’t spring for out of your pocket. This could be hard for you to come up with last minute on top of a down payment. If you do the appraisal and find out ahead of time, it’ll save you from that situation.

Skipping the home inspection could lead you to miss defects and problems.

The home inspection is an evaluation of the home for problems and defects that you might not have been aware of at a showing. An independent, unbiased, third party also does this inspection. This is an important step because oftentimes the sellers’ themselves may not be aware of glaring issues. So it’s not necessarily that sellers are keeping information from you. But rather perhaps they didn’t realize how old the roof is or that the HVAC system is faulty. These are big and expensive problems to fix. Without the inspection, you might not know that these issues or others are going to fall into your hands sooner rather than later.

This could take away some of your negotiating power.

When you do take the time to do the home inspection, it can give you negotiating power with the sellers. Perhaps there is a red flag and the roof or foundation is not in the best shape. This knowledge allows you to push the price down in negotiations so you can save the extra to go towards repairs.

This could also lead to you paying more out of pocket down the road.

It makes sense, then, that if you forgo the inspection and don’t know about any problems, you might pay more later. Not knowing doesn’t mean there aren’t any issues. It just means if you pay full price and then the roof starts leaking three months in, you might be strapped for the cash to repair it.

These are just a few reasons NOT to skip the appraisal and inspection. And as always, I’m only a phone call away for any questions you may have while buying. Let’s make your real estate dreams a reality.

Remote, In Person, or Hybrid? Buying a Home For Your Work Needs.

Remote, In Person, or Hybrid?

Buying a Home For Your Work Needs.

The pandemic has changed a lot of things about our present world. Remote working, for instance, seems to be here to stay, at least in some cases. In other situations, people are doing a hybrid system where they go into a workplace part time and stay home to work part time. And of course, for many people, remote jobs aren’t an option. We are so grateful to all those who have been working in person this whole time to help our world keep turning.

But if you are working remotely part or full time, it’s worth it to consider how your home can better meet your work needs. Here are some questions to think about.

Will I be working from home for the foreseeable future?

The first question to ask is if this working from home situation is here to stay for you. At least, is it here to stay as far as you can tell? If this last year and a half has taught us anything it’s that nothing is certain. But if you do know that your job has given permission to work remotely for now, it’s good to start thinking about what set up will best suit you.

And even if your situation is hybrid and you’ll be staying home to work only part time, this still effects what kind of space you need at home.

What options do I have for a home office?

If the answer to the first question was yes, then it’s time to think about what set up you need. Many of us had to make do over the last year and a half as far as home office space goes. Perhaps you had to share working space with a spouse or partner. Or maybe you have kids who also were stuck home and the house became an all purpose office and classroom. Maybe you were fortunate to have a designated office space at home already, in a spare room or off to the side somewhere. But you also might have found yourself working from a noisy dining room table or shut up in your bedroom all day without a proper desk.

Should I move?

One option you may be considering is to move altogether. Some of us find that with working remotely, we have more options on where to live. Without needing to be so close to a workplace location, maybe you want to move farther to the suburbs or country. Perhaps you just want more square footage and can financially manage that now. Maybe you’re taking care of a family member in your home as well, or your spouse’s job has also gone remote. It’s ok to want a home with enough space so that you’re not all crammed on top of each other. We all can make things work for a short time. But now that you know how your job situation is shaking out, maybe a move is in your best interest. If you’re looking to move this fall, it’s a great time to consider a home with an office or at least office nook.

Can I make this home more versatile?

If moving isn’t a viable option for you at present, how can you make your current home work smarter for you and your needs? Is there a guest bedroom you could multipurpose to turn into a dual functioning office/spare room? Or maybe there’s a vanity or bulky dresser in your bedroom you could replace with a streamlined desk setup. What about a nook under the stairs or off to the side in a living space? Having a designated office area will help tremendously in your productivity and concentration. So even if it’s not a completely private room, do your best to create an intentional space for working.

Use this guide to start determining what kind of home office situation you want moving forward. If the answer is to move, I’m here to help with all your real estate needs.

The Secrets to Building Wealth Through Home Ownership

Building wealth is part of the American Dream. And yes, that dream is constantly in flux and ever changing depending on who you are and the unique goals you bring to the table. However a stable piece of that dream seems to be building wealth and moving towards financial freedom. Part of that involves owning a home. It’s not just about security and having that piece of the dream to show for yourself. It’s bigger than that. Owning a home can help you build wealth and move into greater financial freedom, for yourself as well as future generations.

What is wealth exactly?

In succinct terms, wealth is all the assets one owns minus any and all debts you’ve incurred. That’s the more technical definition that goes along with the math and simplifies you to numbers on a page. However, wealth means greater freedom. Having more wealth means the ability to save for retirement, achieve financial freedom, have more security and mobility to make financial decisions, and the means to save for future generations. Wealth allows you to live more fully in sync with your other dreams and goals.

How does owning a home help build wealth?

There are more ways to build wealth than home ownership. Some people achieve this through stocks and bonds. Others save from their income and pay off debt over time. However, home ownership is one of the most effective ways to build up wealth over time. Here are a few reasons why:

Provides a stable investment: While you are able to live in this house and make it a space to call home and your own, it’s also providing an investment. You make monthly mortgage payments and those also double as monthly investment payments. It’s like an automatic savings account because each payment actually builds your investment.
Provides a stationary monthly payment: You won’t have to worry about rent increases each year. You know what your fixed mortgage payment will be each month and can budget around that without the worry of rising rent.
Provides tax breaks: You may be eligible for a tax deduction when you buy, especially if you’re a first time homebuyers. Look into what tax incentives and breaks are available to you.
Provides you with a generational asset: You can pass down the home itself or the equity you’ve built up through owning a home to your children and grandchildren.
Provides greater financial freedom: As you own your home for longer and continue to pay the monthly payments, you’ll find greater freedom to invest in other areas. You know your budget and that stability allows you to invest in stocks, retirement or other ways to save and grow your wealth. Not to mention, if you pay off your mortgage, you can really build that wealth and retirement without those monthly payments. Or you can always sell one home and purchase the next one, perhaps at a greater cost, thus building your wealth further.

Consider all these aspects of home ownership to determine when it’s the right time for you to take that step. I’m here to help with any and all questions you have along the way. Contact me today to learn more!