Buying a Home: Do you search by Price? or by BUDGET?

So, you are looking for a home, right? Well, like virtually every soon-to-be buyer, you go online and you plug in search parameters, nowadays assisted with drop downs or sliding buttons, with the most important being price range, correct? Well, the irony is that when you do get your Pre-Approval from your lender, their numbers are calculated relative to a monthly budget and this budget includes property taxes in the equation. Ask yourself, are you including property taxes in your searches? Does your search tool even allow for this option? Probably not, which means you could end up falling in love with a home you can't easily afford or settling for something less than the "perfect" home you envisioned because you could have afforded more in the way of a slightly more expensive home if you found a home which had lower taxes relative to its price.

So, to help you, I have traded out my mortgage calculator to provide you with a tool that can help you figure what a home might cost in the way of a monthly budget: Mortgage Calculator

Follow these steps:
1. click on the "mortgage" tab
2. plug in the price you expect to be paying for your new home
3. plug in percent of purchase price you expect to be paying in cash, meaning the "portion down," usually 3.5% for FHA, 5%, 10%, 20% (to avoid PMI altogether) or more.
4. plug in the number of years for your mortgage, most commonly 30 years; however, some buyer chose accelerated mortgages with 15 or 20 year payoffs.
5. plug in the anticipated interest rate, either quoted to you by your lender or if tracking online.
6. plug in the anticipated property tax. This is a terribly critical component as every $1,000 in annual property taxes can equate to $11,000 in home purchase price, depending on the interest rates (my calculator allows you to play with the numbers to confirm this equation). If you are working with a good buyer agent, usually someone with an ABR designation, then you should already know what the average anticipated effective tax rate would be town by town.
7. Lucky #7 and last needed entry is the anticipated Property Insurance (known as the "I" in PITI--Principle, Interest, Taxes and Insurance)

Now you are ready to HIT the CALCULATE button and there you go!

If you have any questions about how this works or any real estate questions whatsoever, please feel free to contact me at 917-797-5059 ro email me at Marksladehomes@aol.com.


Mark Slade
Keller Williams
917.797.5059
Good Homes



Selling a Maplewood/South Orange/Millburn/Short Hills area home involves many steps and having an experienced Maplewood New Jersey Real Estate Agent and Realtor®, specializing in the Bedroom Communities of New York City in Essex/Union County— Millburn, Short Hills, Montclair, West Orange, South Orange, Livingston, Maplewood, Springfield, Summit, Madison, Chatham, Scotch Plains, Fanwood, Cranford and Westfield--by your side will make the transaction run a lot smoother. I would love to be your Maplewood/South Orange New Jersey Area Real Estate Professional! I assist both buyers and sellers in the Bedroom Communities of New York City, mostly served by NJ Transit’s Mid-Town Direct Train Lines, offering commutes of 45minute or less to NY Penn Station, with either the purchase and or sale of residential real estate.



As an Accredited Buyer’s Agent (ABR), I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home. My GO-TO team can provide you the best in Real Estate advice with regard to attorney choices, Home Inspectors and Mortgage Loan Officers



As your Maplewood/South Orange/Millburn/Short Hills/Essex/Union County New Jersey listing agent I am well versed on as your local expert in all things in the Maplewood and South Orange area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your Mid-Town Direct home to be competitive in today’s market with training to provide my clients with an in-depth Advanced Comparative Market analysis, and advice on staging. As my office’s technology officer as well as both a Zillow Platinum Premier and Trulia Premier agent, I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your New Jersey Real Estate Agent and Realtor ® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your New Jersey Essex/Union County area Realtor® (with a little bit of Morris County thrown in for good measure) is one of my truest passions, and “Helping You Find Your Dream Home” is my number one priority.

Mark Slade