Sterling Arms Home for Sale | Stratford, NJ & Understanding Home Ownership
This condo is currently for sale in the Sterling Arms development in Stratford, NJ. Have you maybe thought of buying a home but are a little too nervous to take the first step? Hopefully with the information you find below, you will have a better feel for what kind of payments are realistic and an estimate on if you may qualify.
What would my payment be?
You can purchase a home like this with as little as 3.5% down. If the purchase price was $135,000 and you made the minimum down-payment of 3.5% then your monthly payment would be about $1,230. This payment includes the mortgage, taxes, insurance, and association fees.
If you are a first time home buyer, you may also qualify for a grant to purchase this home which will help cover the necessary down payment and some additional costs. For more information on how to utilize your options as a first time home buyer, check out Understanding and Using All of Your First Time Home Buyer Options
What kind of income would I need to qualify?
When you look to qualify for a mortgage, the mortgage company will want to verify your gross income (pre-tax income) as well as all of your monthly debts such as credit cards, student loans, or car payments - basically those items that would show up on your credit report. (For more info on credit, check out Why I'm Stressing Over Someone Else's Credit and Financing and Mortgages with a Credit Score Below 620.)
To qualify for purchasing this home you would want to have at least a gross monthly income of about $2,800. This income can come from one or more borrowers. For example, if you and your significant other would like to purchase this home, your combined gross monthly income would need to be about $2,800 or more. This equates to an hourly income of a little more than $8 an hour for 40 hours a week for each borrower.
This example assumes that you have no car loans, credit card charges, or student loans, etc. IF YOU HAVE MONTHLY BILLS such as these you can certainly still qualify, you would just need to have additional income to cover these bills and still have a good debt-to-income ratio. (total monthly debts divided by total monthly gross income). Your debt ratio should be around 45% or lower. You may qualify for a higher debt ratio, but it would probably not be a prudent move.
Can the seller pay for my costs?
The answer is some of your costs. This is commonly referred to as seller concessions. The seller can pay for fees such as closing costs, points, title fees, recording and appraisal fees, and such. The seller CAN NOT pay for your down payment. However, there are many ways you can come up with a down payment. Two of the most common ways to make a down payment (other than using your own money) is to utilize a grant from the county or state (such as first time buyer grants) or to you can receive a gift from a family member or employer for the down payment. Or you can do both! There are many other ways to come up with a down payment such as a loan, sweat equity, and more, but the scope of this article can not cover those. For more information on grants check out NJ First Time Home Buyer Grant Program, Tax Credit Loan Program: The "Prefund" Program, or First Time Buyer Options in South Jersey
For more information on seller concessions check out Understanding Seller Concessions | Seller Paid Closing Costs | Seller Contributions | Seller Assist
We have reviewed an estimated monthly payment, how much you need to earn to qualify, and a few ways on how your down payment and closing costs can be paid. Check out these other helpful links.
- Non-Occupant Co-Borrowers....How Knowing the Rules Can Help You Obtain a Home Now!!!
- $8000 Tax Credit Information for First-Time Home Buyers
- NJ First-Time Home Buyer Mortgages and Grants
- Home Buying Tips
Finally one of the best ways to get ready for a home purchase is to surround yourself with great people, namely a great loan officer and Realtor. If you don't currently have a loan officer to help you out and answer all of your questions, I (Steve Kappre) would love to help. Likewise if you don't have a real estate agent who can help you out with that part of the transaction, then I can help find you one that is GREAT at what they do. A great loan officer or real estate agent will LOVE to have you ask them questions. If they don't then MOVE ON!!!
Best wishes - if you have any questions please comment below, e-mail, text, or call Steve Kappre (Contact info below).