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FAQ's

If I hire New Jersey Real Estate Guys, will I be paying a fee?

It depends on what type of client you are.  Buyers almost never pay fees and NJREG does not charge a fee to buyers.  Sellers are traditionally responsible for negotiating a fee with the listing agent, which is paid upon CLOSING.  It is not an upfront fee.  Upon closing the fee is paid to the buying and selling agent out of the proceeds, paid by the closing agency.  Real estate fees in the state of New Jersey are negotiable.  An important statistic to know is that it is a fact that sellers have historically made 16% more when utilizing a real estate professional as opposed to selling it on their own.

I recently heard of a tax credit for homebuyers.  Does this apply to me?

The tax credit under the American Recovery and Reinvestment Act of 2009 is a HUGE stimulus in the real estate market.  This is an amendment to the first similar tax credit.  It has already been approved by senate and likely going into affect 2/6/09.  The amendment states that ALL primary residence buyers of new and re-sale real estate  are eligible.  The amendment allows a tax credit for up to 10% of the purchase price of the home NOT TO EXCEED $15,000.  The tax credit may also be equally distributed on your tax returns over 2 years. 

What is a short sale and should I be looking at them when shopping for a home?

The easiest definition of a short sale is the sale of real estate short of the amount owed on the mortgage balance.  A short sale is negotiated by the bank who owns the mortgage and the seller/owner of the real estate.  Short sales are quite abundant today due to the significant declination in home values during the last few years.  For our BUYER clients, we have found the best deals negotiating short sales and have assisted our clients to achieve an equitable purchase in buying a short sale.  Most realtors shy away from them due to the tedious hard work involved in negotiating them, however we pride ourselves on getting our customers the best deal possible so we will work on any home that makes sense to our client.  Sellers who are entertaining a short sale on their home please contact us for a consultation.  We will help you expedite the process which can sometimes take quite a long time to negotiate by yourself.  BANK LOSS MITIGATIONN DEPARTMENTS ARE TRAINED TO WORK AGAINST YOU TO TRY AND GET MORE MONEY FOR THE HOUSE.  NJ REAL ESTATE GUYS CAN ASSIST IN DEALING WITH THESE MITIGATORS AND HELP YOU SELL QUICKER.

I cannot afford to pay my mortgage anymore.  What should I do?

First, don’t feel bad about yourself as many American’s are in the same position.  Instead of ignoring the situation or procrastinating, it works more in your favor to communicate with the bank right away.  Contact your loan source’s LOSS MITIGATION DEPARTMENT.  First, ask them for a “workout package” or a “short sale package” which is either on their website or they can e-mail to you right away.  To negotiate with the bank a short sale, normally they require you to be AT LEAST 60 days in default on the loan.  Some banks will begin negotiating as early as 30 days and some as long as 90 days.  Do not think “foreclosure”.  Banks are very willing to offer short sales as it is cheaper for them and less ramifications to you.  See above the definition of “short sale.”  For more convenience in handling  your short sale, contact a representative with NJ Real Estate Guys for a consultation.  We will help you deal with your bank to make this transaction as seemless as possible.

How do I know how much I can afford on a purchase and if a bank will approve me?

Great Question!  First a bank or loan officer will ask you to fill out a loan application where they will pull your credit.  The main criteria they look for is what is called a Debt To Income (DTI) ratio.  Normally once you are in communication with the lender, they will ask what your reasonable budget is for your purchase price.  Based off of your ballpark pricerange, they will calculate your potential Principal, Interest, Taxes, and Insurance (PITI) payment (your total monthly debt on the house).  They will then refer back to your credit report and add up all of your current debt with the PITI.  Lastly they take your annual income and divide it by your total debt that they have calculated.  Fannie Mae / Freddie Mac have a 45% DTI limit.  As long as  you do not exceed the 45% limit you are qualified for the loan pending final underwriting approval.  If your DTI is higher than the 45%, don’t worry.  We just have to look at more inexpensive homes.  

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