When shopping for a house or condominium in Hoboken, one of the first things you might do is establish a budget. You'll start with the cost of the home you feel you can afford, add on the cost of moving and an amount for any necessary renovations. Based on this number you would establish a target budget and search for homes that do not exceed that amount. There is, however, a much more practical way to look at it.
If this is a first-time home purchase, you may want to re-evaluate your budget and base it on the monthly mortgage payment that best fits your circumstances. The cost of your Hoboken home is only part of the equation. Most buyers will be applying for a mortgage, and the monthly payment will be dependent on a number of factors. Consider that the length of the mortgage, amount of the down payment, the interest rate, taxes and insurance could completely change what you can actually afford.
Along with a monthly mortgage payment you feel comfortable with, add any expected maintenance fees, HOA fees, the bills to run and maintain your home and all of the other bills you have now, plus the amount you have designated for savings. This will give you a much more realistic number. Basing your home search on the monthly mortgage payment may cause you to re-evaluate the cost of your new home as you see how these numbers will impact your life.
If you currently have a handle on your budget, your bills are getting paid on time, you're saving money and you are secure, you should be able to find out how much you can pay by getting pre-qualified for a mortgage.
The good news is that if your credit score is high, you may be able to find a lower interest rate and combined with some lower home prices, you may be able to look at homes in a higher price range. This could mean a more desirable neighborhood and schools, a larger home or condo with more amenities that could be move-in ready and perfect! Even if you're not sure about the market, now is the perfect time to find your dream home.
Doing the calculations can be tricky, and this is where the expertise of an experienced broker will be invaluable. Along with availability, market trends, information about lenders and communities, I can provide an estimate of the price range and area in which you can look for a home based on the monthly amount you are comfortable paying.
About Eddie: Eddie Perez is a resident of Hoboken and works as a New Jersey licensed Broker – REALTOR®. His goal is to educate both buyers and sellers so that they can make the most of their bottom line while saving time and having fun during the process of buying or selling condominiums and brownstones in Hoboken and the surrounding metro communities including Jersey City and Weehawken, New Jersey. He has personally sold over 135 homes and is among the top producing agents in Hudson County. You can email questions to eddie@InvestHoboken.com. To schedule an appointment to meet with Eddie, call him direct at 201.344.2886.