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ARE YOU READY TO BUY A HOUSE? By Bryan Kudera

Medicaid/J.A.C.C. Covered Service 5. You own insurance. Step 1 in my financial planning process looks to protection first. If you are about to take on a huge debt in the form of a mortgage, you should already own adequate life and disability insurance to address potential loss es in income. 6. You have an emergency fund that does not in clude your home downpayment. Step 2 in my pro cess is focused on liquidity. I like my clients to have at least 6 months of their ordinary expenses avail able in cash. Homebuyers should walk away from the closing table having made their downpayment with their emergency fund still fully intact. 7. You don’t have any “bad debt”. I qualify “bad debt” as lingering credit card balances or com parable personal loans with interest rates in the teens or 20’s. These should be eliminated before taking on a mortgage and all that goes along with home ownership. 8. Your price range is based on stable income. As home ownership and a mortgage are long-term commitments, they should be based on a reliable income, not planned around one banner year in business or an unexpected large bonus that may not come again. These points are some of the common finan cial concerns I address with my clients. However, there are several other nonfinancial factors that are affecting home ownership today. Accord ing to the U.S. Census Bureau, married-couples make up only 47% of households, versus 71% in 1970. Of the 80 million family households, 22 million do not have both parents present. The high costs of home ownership today re quire stability and collaboration more now than ever. As family dynamics change, the burden can be exasperated for single homeowners who have gone through a significant life change. Prospective homebuyers should carefully examine their finan cial and nonfinancial situations before making one of the biggest financial decisions of their life. You have always been there for your mom, and now GoldenYears Care is here for you for a home. It can help prospective buyers under stand how much house they can afford. 3. 30% Rule. As the aforementioned Zillow study stated, a popular rule of thumb is to not allow your annual mortgage payments to exceed 30% of your gross income. 4. Plan to own for at least 5 years. Many first time homebuyers are surprised to learn of all the hidden costs of home ownership. They may also be surprised at how long it can take to build equi ty. Mortgage amortization works so that most of early mortgage payments go towards interest and a small portion to principal. The “tipping point”, when more of your payment goes to principal than interest, does not occur until the 16th year on a 30-year fixed mortgage with a 5% interest rate. This tipping point moves out even further when interest rates are higher. If you are not sure where you’ll be in a couple of years, renting may offer the flexibility you still need. Call UsToday For ATour or Info! (732) 851-6640 www.GoldenYearsCareNJ.com • Medical AppointmentTransportation • Around-the-clock attention • Physical & OccupationalTherapy In House • Free Door-to-DoorTransportation • Delicious Food Options (Spanish, Russian, Italian & more) • Onsite & Offsite Activities: (Ping Pong, Zumba, Shopping Excursions, Museums, Crafts,Trips to the Shore and much more) • Onsite Hairdresser Serving Monmouth, Middlesex & Ocean Residents Conveniently off Rt 33 and NJTurnpike Exit 8 108 Woodward Rd. Manalapan, New Jersey If your loved one needs care during the day, trust GoldenYears Care to put them in good hands!

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Becoming a homeowner has long been consid ered an integral part of the American Dream. As a financial advisor to thousands of young pro fessionals across the country, if it’s not their first financial goal, it’s almost always in the top three. “I’m done with renting, I’m tired of paying someone else’s mortgage.” “I just can’t live with my parents (or my spouse’s parents) any longer.” These sentiments are the norm for college grad uates who have settled into their careers and feel behind schedule. Due to the myriad of economic issues still plaguing much of the Millennial gen eration, home ownership is proving elusive. As of 2020, less than half of millennials aged 25 to 39 (47.9%, according to the U.S. Census Bureau’s 2020 Current Population Survey) were homeowners. Between student loan balances, the highest rate of inflation they have ever lived through, elevated in terest rates, and a real estate market that never came down from the COVID boom (national home prices have surged 54% since 2019), prospective buyers are often unsure of when is the right time to buy. Many young professionals are proceeding with other life events, such as getting married and starting families, bypassing the common prereq uisite of home ownership. This trend, often called “delayed onset adulthood”, is only expected to ex pand among the upcoming Generation Z. The lag in home ownership is not limited to just youngsters. According to the 2022 Ameri can Community Survey by the U.S. Census Bu reau, 39% of the 134 million families residing in the U.S. did not own the home they lived in. However, there is an interesting paradox tak ing place. While I do caution clients that buying a home too early can produce some of the worst financial mistakes, many people are more ready than they think. According to Zillow, roughly 7.9 million non-homeowning families could take on a new mortgage payment. The study qualified these “income mortgage-ready” families as those whose share of their income spent on a mortgage payment would not be more than 30%. So, what steps should prospective homeowners take to know if they are ready to make the leap? 1. Check your credit. A conventional loan re quires a credit score of at least 620. A score of 740 or above is better as it can allow more attractive borrowing terms. According to The Federal Re serve Bank of New York, the median credit score for those taking out a mortgage in the U.S. is 768. 2. Get preapproved. This should be the first step in obtaining a mortgage and beginning to shop

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