Getting an NJ Home Mortgage: Is Now the Time?
If anyone has been following the news for the last few years, there is no doubt that potential homebuyers are feeling a little skittish. Is now the time to buy? There are many factors to consider during this unusual period of economic malaise. Historically, real estate has almost always appreciated in value. The biggest question on everyone’s mind over the last year or so has been if the market has corrected itself enough in the North East to consider taking the plunge.
Jarrod C. Grasso, the CEO of the New Jersey Association of Realtors (NJAR) has stated, "For the second quarter of 2011, New Jersey's metro areas held their own in terms of median home prices, with all areas demonstrating a quarterly price increase".
Of course, families all over New Jersey need homes to live in, whether they rent or own will depend on a number of factors. With lending practices tighter than they have been in years, and the down payments higher, there are both better prices and more inventory than consumers have seen in years.
NJ Home Mortgage Federal Programs
Anyone shopping around for an NJ home mortgage should also consider some of the federal programs that may change in September, as Washington is considering discontinuation of the high FHA, Fannie Mae and Freddie Mac loan limits that were passed as part of the 2009 stimulus.
The ability to obtain larger loans from government sponsored entities has made more options available, and is reason to consider entering today's market. If those larger loans are discontinued, for an NJ home mortgage, lower loan limits could make it more difficult for prospective buyers to secure the mortgages needed to purchase a home here.
In light of that, Mr. Grasso commented, "With an already fragile industry at the whim of external factors, now is not the time for lawmakers to impede the ability of credit-worthy buyers to enter the market. In addition, the National Association of Realtors estimates that one job is generated for every two home sales. It is time to put housing first." Certainly food for thought.
Good Credit and Your NJ Home Mortgage
Whatever the FHA ultimately decides, there are still some very good opportunities available to buyers with good credit seeking an NJ home mortgage. For example, there is a housing tax credit that many home owners have enjoyed for decades. They will save on taxes, and can deduct their mortgage interest from income taxes. Low Mortgage rates have held and continue to be available to those who qualify. With all of that to consider, the step for a potential buyer may be to see if they qualify for a pre-approved mortgage. This usually makes their home search a much easier, even in a buyers market.
Beyond all of the financial considerations, owning a home and getting a NJ home mortgage avails many liberties denied renters. Most landlords will not let you remodel or decorate beyond a very limited scope, if at all. To some this does not matter much, but for others it is something that gives them a piece of mind that is hard to compare to anything else.