Robert Gaccione

Director of Commercial Lending

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Cell: 973-557-6151
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The past decade has proven to be incredibly dynamic when it comes to the housing market. Ten years ago, the United States was still battling the effects of the Great Recession where real estate arguably suffered the most. It took until the middle of the decade for the greatest buyer’s market in history to turn into the greatest seller’s market. We’ve gone from having too many homes to sell to not having enough. Buying a home has remained a vital part of the American Dream and it’s important to come prepared to the start of a new decade.  Come Prepared with Pre Approval Loans and a Credit Score to Match  With inventory of homes for sale facing a major shortage across the nation, getting a preapproval for a home loan is more important than ever. Shopping for homes before gaining a preapproval letter is a common mistake. Pitfalls with student loans, significant recent cash deposits, and the manner in which self-employed income is reported can cause serious delays when it comes to getting a mortgage. A credit score of 620 or above is typically the minimum score required to buy a house.  Don’t Be Tempted to Overbuy  Consider three times your income as a starting point when considering debt-to-income ratios . Don’t be enticed by beautiful photos and luxurious amenities. Get preapproval for your mortgage so you can move quickly when you do find the right house.  Preparing to Make a Down Payment  Many people think that they need 20% down. However, 6% was the median down payment for first-time home buyers in 2019. For repeat buyers, the average was closer to 16%. Understand the ...

Whether you’re a recent college graduate or have spent some years working and saving, making your first home purchase may have crossed your mind. Thoughts about the current real estate market, the affordability of a home, and the timing of being a first-time buyer may have quickly followed as well. However, buying a home is more attainable than you think and can be a valuable tool in building your net worth and overall wealth.  The Earlier The Better  The earlier you start, the earlier you save. EMIs (equated monthly installments) are lower when you opt for a longer tenure of loan. By opting for a longer loan early on, you’ll be able to take advantage of low monthly payments when you need them and eventually repay the loan or increase the EMI amount as you become more financially stable in later years.  Studies have shown that those that purchased their first home in their twenties had an average of $10,000 left on their mortgage at age 60. Those that waited until their thirties averaged around $50,000 but typically purchased more expensive homes.  Tax Breaks When you take out a loan to purchase a property, you will be eligible for a tax deduction against the interest paid on the loan. If you itemize on your income taxes, you can  deduct all or a portion of your mortgage interest and property taxes.   You’re also eligible for a big exclusion in place to help reduce your capital gains tax when you’re ready to sell.   Investment Potential  If you buy property in a developing area, chances are that the property will yield a high return within a few years. ...

The housing market in New Jersey saw a dynamic year in 2019. As temperatures dropped, inventory and offers increased. Thanks to the high demand for starter homes, those looking to buy in the luxury market will find themselves at an advantage. Less competition coupled with notable increase in luxury homes spending can make upgrading your current home more attainable than ever.  The Cost of Homes Will Remain Steady Existing homes have seen both a decline and rebound in sales in recent years. While the third quarter of 2019 saw declining mortgage rates, the pace for 2020 is projected to remain steady. The flattening of overall price growth projects a forecasted increase of 0.8% for 2020 .  Mortgage Rates are Projected to Stay Below 4% Until there is a sustained increase in inflation, Central Bank will not be hiking up their rates. Currently, it’s projected that mortgage rates should stay below 4% but won't decrease much beyond that. Lower mortgage rates are proving to be a big factor in increased construction with builder confidence being reported at an all-time high since 1999. Increased Demand for Entry-Level Homes Can Lead to an Increase in Existing Luxury Inventory  Those belonging to the Baby Boomer generation have played a major role in shaping the current housing market, as many of them are retiring and looking to downsize their current homes. While entry-level homes are in greater demand with a low level of inventory, many builders have shifted their focus to affordability rather than luxury. This trend will lead to a decrease in new construction in the luxury market. However, those currently inhabiting ...

There’s a common misconception that the real estate market in New Jersey slows to a complete stop in the wintertime. While it may feel counterintuitive, the colder months are actually a great time to sell your home!  Less Competition Makes Your Home Seem More Desirable  The vast majority of the country does not have enough homes for sale to satisfy the number of buyers in the market during the winter. Waiting until the spring can have you seeing more time spent on the market and potentially less money for your home.  The Opportunity to Sell High and Buy Low If you want to buy a home in the spring, selling now gives you the chance to be a non-contingent buyer when you’re ready to make a purchase. While you may have to find some short-term accomodations, this sets you up as a competitive buyer because you won’t be saddled with a house sale contingency.  Reduced inventory in the winter months often sees homes selling at higher prices. The market is often flooded with competition in the spring which gives buyers the leverage to negotiate on the price.  Buyers Are More Serious in the Winter Months It is statistically shown that buyer demand remains strong throughout the winter in the vast majority of the country. Buyers that are ready, willing, and able to purchase are in the winter market. Many areas of the country will see buyers competing for the same home. Beyond that, mortgage rates tend to rise in the spring which gives buyers the incentive to act now.  You’ll Capture the Relocating Buyer The first quarter of the new year is when employers are most likely to either ...

Buying a home is a major investment and for some might be a scary one. The cost of maintenance, utilities and property taxes might be increasing in New Jersey, however, recent real estate reports show that buying a home can set one up for a successful financial future.  Whether you are newlyweds looking for your first place to settle down or starting a new career in a new location, some turn to renting a residence for cheaper monthly costs and less hassle. While it may seem like you are saving money by renting, you are actually spending MORE than you would buying a home. Check out these reasons for the benefits of investing in your own property.  It’s exclusively yours  No strings attached. Being a homeowner means you have your own place that is not anyone else’s and can do what you want with the space freely. Whether you want to paint the living room a new color or change the countertops in the kitchen, it’s your call and you don’t have to seek permission from a landlord. When you are renting a home or apartment, you can’t ever have the space be truly yours since personalization has its limitations. Think of owning a home as your own little HGTV project: you can remodel and redecorate for any style or vibe you are looking for your home to convey.  You can see benefits come tax season  We all dread the month of April...the 15th to be exact.. But when you own a home, that time of year might not be so unpleasant. When renting a place, you feel as if the burden of taxes is lifted off your shoulder. While that may be true, you will end up paying more for the residence than you would if you owned ...

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