Author Archives: Business Development Rep Samantha

Shred It or Set It and Forget It? A Guide on Documents to Keep vs. Shred

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From simple pieces of paper like sales receipts, to those that encapsulate your identity like a birth certificate – deciding how to classify personal documents can be a challenge. Properly identifying documents to keep or shred, not only declutters your life – but also plays an important role in protecting your identity. Let’s take a look at what documents you should consider shredding or keeping, and how you should store the ones you aren’t parting with.

Immediately Shred

The below documents can generally be discarded as soon as you receive them or are notified of their expiration, so long as they are shredded.

  • Sales receipts – Unless you anticipate that you will need to make a return.
  • ATM receipts
  • Expired warranties
  • Expired credit cards and driver’s licenses

Keep for a Year – Then Shred

  • Bank statements
  • Pay stubs
  • Paid, undisputed medical bills
  • Credit card and utility bills
  • Deposited checks

Pro tip: If you can access these documents electronically, you should consider shredding your paper copies.

Keep for Seven Years – Then Shred

You might notice that the below list of items are all tax-related. The Internal Revenue Service (IRS) can audit you at any time in certain circumstances, so it’s best to hang onto your tax return documents for at least seven years.

  • W-2s
  • Tax-related receipts and cancelled checks
  • Records for tax deductions taken

If you have questions related to tax documents you should hang onto, consult an accountant or your local Taxpayer Assistance Center office.

It Depends

The below items have varying dates on how long to keep the paperwork around.

  • Loan documents. In the case of certain loans, such as auto loans or student loans – it is generally recommended to keep paperwork related to the loan until it’s paid off. This can include the loan agreement and a record of your payments.
  • Property records. You will want to keep the title and deed to your home as long as you own the home. Additionally, you will want to keep records of expenses related to major home improvements until you sell your home, as this will become important should you decide to sell.
  • Sales receipts and warranty information for major appliances. Keep the receipt and warranty information while you own the particular appliance, should anything go wrong.
  • Title to your vehicle. Keep the title while you own the vehicle to prove ownership. When you decide to sell or trade-in the vehicle, you will be required to give the title to the dealership or the new owner.

Forever Documents

There are some documents that you should never part with – and lock up while you’re at it.

  • Birth certificate or adoption papers
  • Social Security cards
  • Valid passports and citizenship or residency papers
  • Marriage licenses and divorce decrees
  • Wills, living wills, power of attorney, retirement and pension plans
  • Death certificates of family members
  • Vital health records (especially records that aren’t stored electronically)

Looking to Shred Documents?

Properly disposing of documents with personal or financial information can help protect your identity. Here are some ways you can safely shred your documents.

  • Local shred events. There are various organizations that will host shred events, such as banks, credit unions, and local municipalities. Check your town’s website or local Facebook groups to see when one nearby may be taking place.
  • Several retailers such as Staples, FedEx, and UPS Stores – offer shredding services. Call the local retailer you select in advance, to ensure the service is available at that particular location.
  • Purchase your own shredder. Research shredders that might be right for you, depending on the volume, type, and security requirements of the documents you expect to shred.

It is important to note that the above guidelines for keeping and shredding certain documents are general suggestions, with experts sometimes offering varying advice. The guidelines depend on various factors, such as the type of document and the legal requirements or expectations associated. If you are ever unsure, it might be best to err on the side of caution and keep and safely store the document in question longer than might be necessary. You can also consult the issuer of the document for questions.

If you have questions related to documents associated with your First Financial accounts – don’t hesitate to call us at 732.312.1500 or visit your local branch.

Do’s and Don’ts for Personal Loans

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If you’ve ever had a financial emergency, considered consolidating debt, or needed to make a big purchase – you might have considered a personal loan as an option to quickly help you meet your financial needs. A personal loan is a type of installment loan that can be used for nearly any purpose and usually comes with a fixed rate and monthly payment. Personal loans are typically unsecured, meaning they are not backed by any collateral and approval is based on your creditworthiness. Personal loans are popular among borrowers for numerous reasons, such as having interest rates that are typically lower than credit cards, knowing the exact dollar amount owed and end date of payments, and the flexibility with which the funds can be used. Consider these do’s and don’ts if you are deciding if a personal loan is right for you.

Don’t Forget to Evaluate Your Finances

Although it’s recommended to regularly check your credit report, it is especially important when applying for loans. A key consideration for lenders when qualifying you for a personal loan is your credit score. If your credit report has any inaccuracies that could be lowering your credit score, it is best to resolve these before applying for a loan. Additionally, a higher credit score will help you receive a more favorable interest rate. By reviewing your credit report before applying for a personal loan, you can look for areas of improvement – such as paying down debt or making on-time payments.

Do Compare Lenders

Getting a second opinion applies when you’re shopping for lenders, too. Taking the extra time to compare lenders and their offerings will help you pick the personal loan that is right for you. Factors that you might want to consider when comparing lenders are loan type, requirements for approval, available terms, annual percentage rate or interest rate, and fees. A common fee is a pre-payment penalty, which is an additional fee charged if you pay your loan off early.

Don’t Borrow More Than You Can Afford

Just because a lender approves you for a certain loan amount, doesn’t necessarily mean it’s right for your budget. In the case of an unsecured personal loan, a lender will qualify you for the loan based on your credit score and income – among other factors. Your lender doesn’t know your financial obligations that don’t appear on your credit report, or how your budget currently feels without this additional monthly payment – only you do. Before you sign and make your personal loan official, consider how this new monthly payment will impact your budget.

Do Consider a Secured Loan Option

Unlike an unsecured loan, a secured loan requires you to pledge an asset as collateral. This allows the lender to seize the collateral if you default on your loan, helping to recoup a potential loss. An auto loan is a type of secured loan, since the lender can repossess the vehicle if you default. Since you are pledging a valuable asset, you will likely get a lower interest rate with a secured loan option. You may also choose to consider a Home Equity Loan as another option, instead of an unsecured personal loan. However, it is important to be aware of the risks of secured loans – if you were to default on a secured loan, you risk losing your collateral (i.e. your home or your vehicle).

Do Be Cautious of Payday Loans

Payday loans are short-term loans of small amounts (typically $500 or less), and are meant to hold borrowers over until the next payday. Although this may not seem harmful to borrowers on the surface, these loans typically have large fees and extremely high interest rates. According to the Consumer Financial Protection Bureau, fees can be upwards of $15 per $100 borrowed, or $45 on a $300 payday loan – which is equivalent to an interest rate of 400%. Payday loans are meant to have terms of two to four weeks, just enough time for the borrower to repay the loan by their next payday. This gives the borrower very little time to repay – potentially causing the loan to rollover into another payday or be assessed with additional hefty fees. Although the instant funding and lax borrowing requirements may be appealing – payday loans can get you into a cycle that is very difficult to break, so it’s best to be leery of these.

For anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties – First Financial does have a payday alternative loan option with a lower interest rate, a personalized savings plan, and no-cost financial counseling options.** You can apply online 24/7 or give us a call at 732-312-1500, Option 4 – if you have additional questions.

If you need to borrow money for a large or unexpected purchase, or are looking to consolidate high-interest rate debt – a personal loan could be exactly what you are looking for. Our personal loans are an easy an affordable option, with interest rates starting at 10.24% APR.* For more information on any First Financial loan, you may visit a local branch or our website at firstffcu.com.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

**Loans of $200 to $1,000 available for terms of one to six months. An application fee of up to $20 will be charged; other fees and charges may apply. At least one month of First Financial Federal Credit Union membership is required to obtain a Payday Alternative Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. Not all applicants qualify, subject to credit approval. Rates vary based on creditworthiness, but will not exceed 28%. Terms and conditions of this offer may be subject to change at any time.

Last Minute Ways to Celebrate Independence Day on a Budget

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If you’re in search of life, liberty, and the pursuit of budget-friendly Independence Day fun – there are plenty of ways to celebrate and get in the star-spangled spirit without breaking the bank. From DIY-ing patriotic decorations to taking advantage of the great outdoors, here are some last-minute ways to celebrate like it’s 1776 while sticking to your 2025 budget.

1. Make Patriotic Decorations

You don’t need to spend a lot to let freedom ring this Fourth of July. There are plenty of patriotic decorations that can be made from materials you might already have at home. For example – if you have three mason jars, red/white/blue paint, a paint brush, and tealight candles, you can create July 4th mason jar lanterns. You would simply paint the jars, place a tealight candle at the bottom of each one, and voilà – you have a lit centerpiece. You can also check out local dollar stores if you’re low on supplies at home. Pilar Newman of Loud Money Moves made a list of some Fourth of July crafts that can be made with supplies you can commonly find at the dollar store.

2. Bake Red, White, and Blue Treats

Making homemade Fourth of July themed treats is an affordable way to get in the spirit and get the family involved at the same time. Red, white, and blue food coloring can easily be applied to any treat for a patriotic look. Some inexpensive and simple ideas are an American flag cake, Rice Krispie-inspired star pops, and star spangled parfaits. The internet is your oyster if you’re still in search of more holiday baking inspiration (psst … Pinterest)!

3. Catch a Free Fireworks Show

Nothing says Fourth of July like fireworks – and there are plenty of free or inexpensive ways to watch fireworks in a town near you. Check out the websites or social media accounts of local to you towns, schools, and parks to see if they are hosting a Fourth of July celebration that includes fireworks. If you’re local to our native Monmouth and Ocean Counties in NJ, Jessica Norton of The Jersey Shore Girl graciously made a list that’s growing by the day – of where you can catch fireworks displays in Monmouth and Ocean this year. If your holiday weekend travels will be taking you out of Monmouth and Ocean Counties, check out New Jersey Family’s list of various fireworks displays happening across the Garden State in 2025.

4. Host a Pot Luck

If you’re looking to entertain guests while keeping costs down, consider hosting a pot luck. Invite friends and family to bring their favorite summer dish, while also making sure you have all of your bases covered – drinks, appetizers, entrees, and dessert. A pot luck allows your guests to get involved and show off their favorite recipes, without leaving your wallet to take the hit.

5. Hold a Patriotic Scavenger Hunt

If you have little ones, or are looking for an activity that will get the whole family involved – consider organizing a patriotic scavenger hunt. The hunt can happen out-and-about or wherever your Fourth of July travels may take you, or even right from the comfort of your home. Creativity goes a long way with this one – have your participants search for whatever you put on your list of patriotic items they should uncover. Some ideas are an American flag, red/white/blue buttons, and a hot dog (just to name a few). The Teach Beside Me Blog made a free printable patriotic scavenger hunt list if you are looking for inspiration – all you need to do is print it out, grab pens for those doing the searching to cross off items as they go, and get looking.

6. Learn Some Local History

Have you ever explored the town or region you call home? Although Independence Day celebrates our nation, it offers the perfect opportunity to explore your piece of it. Your town’s history is not only a part of our national history – it offers a glimpse into what events, people, and culture have shaped it into the municipality you know today. You can explore local history by visiting area museums and historic sites, finding nearby events, taking an organized or self-guided walking tour, going to a state park, or borrowing books from your community library. You can also contact your local historical society, if your town has one – they are a wealth of knowledge in preserving history and making it accessible.

We hope that you and your loved ones have a fun, safe, and budget-friendly Independence Day!

Things to Do on a Budget in Monmouth & Ocean Counties this July 2025

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Summer is in full swing, so in addition to celebrating Independence Day – we hope you can celebrate the sunshine and long days of July with these free and inexpensive activities in Monmouth and Ocean Counties.

July 1

Festival of the Sea (Long Beach Island) – Celebrate at the Festival of the Sea, taking place at the St. Francis of Assisi Parish & Center parking lot from Tuesday, July 1st through Saturday, July 5th from 6pm-10pm. The festival has something for everyone, from games and rides the whole family will love to classic carnival fare. Unlimited ride bracelets are $45, and the fairground games and food service have varying prices. You can find more information here.

Pre-Teen Tuesdays (Long Beach Island) – Boredom doesn’t stand a chance with those ages 10-14, taking place at Bayview Park Pavillion on select Tuesdays from 7pm-8pm through August 19th. Each week offers a new chance for your pre-teen to participate in a different activity – such as a murder mystery, bingo, and trivia – and will give your wallet a break. There is no entry fee to attend. For additional information, click here.

July 2

Ice Cream Social & Magic Show (Toms River) – You may be able to easily convince the whole family to attend something if ice cream is involved, and magic shows are no exception! Bring everyone down to Mathis House for an ice cream sundae building buffet and a magic show by Mr. Ron Owens, beginning at 6:30pm. Tickets are $20 for adults and $10 for children. Click here to learn more and purchase tickets online.

Independence Day Celebration (Howell) – Let freedom ring at Soldier Memorial Park from 5pm-9:30pm. From free family-friendly games, rides and activities, to a live band and a DJ providing round-the-clock entertainment and fireworks at dusk – there’s no better way to celebrate Independence Day in Howell. There is no entry fee to attend, but there will be food and alcoholic beverages (for those ages 21+) for purchase. Click here for more information.

Free Movies on the Beach (Belmar) – Beginning on July 2nd through August 27th, there will be a free family movie on 7th Avenue Beach which begins at dusk. Be sure to bring your blankets or chairs and snacks, and sit back and relax. Shrek will be shown on July 2nd. View more details and the rest of the summer movie line-up here.

4th of July Celebration (Ocean Township) – This annual celebration will take place from 6pm-10pm at Joe Palaia Park. There will be food trucks, activities for kids, live music by the Eddie Testa Band, and fireworks will begin at 9:30pm. You won’t want to miss it! Find out more.

July 3

Independence Day Celebration (Colts Neck) – Make your way to Bucks Mill Park at 6pm to celebrate the anniversary of the Declaration of Independence. There will be tunes from the Colts Neck Community Band, an apple pie contest, a flag ceremony with the Colts Neck ROTC Color Guard, and classic Fourth of July food favorites (think hot dogs, hamburgers, and cotton candy). There is a $10 donation/cost for parking. Click here for additional information.

Independence Day Fireworks (Hazlet) – Celebrate freedom and free fun at the Independence Day fireworks at Veterans Park from 6pm-10pm. You are invited to bring lawn chairs or blankets, and enjoy the free fireworks and live entertainment. There is no entry fee to attend, but there will be food for purchase. You can find more information here.

Independence Day Fireworks (Lacey) – There is another chance to enjoy stars, stripes, and fireworks at Lacey High School – beginning at 7:30pm. There will be a free fireworks display and live entertainment, along with food available for purchase. Click here to learn how you can join in on the patriotic fun in Ocean County.

July 4

Fourth of July Parade (Pine Beach) – If you don’t have plans for the Fourth of July, look no further – head down to Pine Beach Chapel for a Fourth of July parade, beginning at 9am. Aside from an array of floats and a ceremony at Vista Park, there will be races and games for the whole family to join in on.  For additional information, as well as instructions on pre-registering for the events you wish to partake in – click here.

Oceanfest (Long Branch) – Head down to the Promenade Boardwalk from 1pm-10pm to join in on what is widely regarded as the biggest Independence Day celebration at the Jersey Shore. This family-friendly festival is a melting pot of Fourth of July activities – from performances by dancers and musicians, to a smorgasbord of food vendors. There will also be a spectacular fireworks display beginning at 9pm. There is no entry fee to attend, but there will be food available for purchase. You can find more information here.

Independence Day Fireworks (Pt. Pleasant Beach) – Celebrate Independence Day at Jenkinson’s spectacular fireworks show on the beach at Jenkinson’s Boardwalk at 9:30pm. Be dazzled with the stunning views of the fireworks from the boardwalk or the beach. This Independence Day fireworks display is an experience that the whole family can enjoy! Learn more.

July 6

Movies on the Beach (Seaside Heights) – Seaside Heights will turn the beach into a movie theater every Sunday through August 24th at 8:30pm. Audience members will be seated on the beach in the vicinity of Beach Patrol North Headquarters for a free showing of various movies the whole family will love. The first movie showing will be Jaws. Viewers are welcome to bring snacks. Click here to view the summer schedule of selected movies.

July 9

Ocean County Fair (Berkeley Township) – Come see what Ocean County is all about at the Ocean County Fair, held at Robert J. Miller Air Park from Wednesday, July 9th through Sunday, July 13th at various times. This five-day celebration features something for everyone – from livestock displays and 4-H showcases, to thrilling rides and live music. There is an entry fee of $10 per person, with ride wristbands available for purchase. Pre-sale wristbands are $35 through July 8th and regular price wristbands are $45 on-site. Click here to see how you can experience the fun, spirit, and community of Ocean County.

July 10

Movies Under the Stars (Howell) – Bring your family and friends to the Howell Library hill for free showings of family-friendly movies select Thursdays this summer. There will be activities beginning at 6:30pm and the movie will begin at dusk. All you need to enjoy the movie are lawn chairs and blankets – and some snacks. The first movie showing will be Ghostbusters. Click here to view the summer schedule of selected movies.

July 12

Concerts in the Park (Bradley Beach) – Bring a seat to rock out to some tunes at this free concert series at Riley Park, every Saturday through August 30th from 6pm-8pm. You will hear the sounds of local talent, playing a mix of musical favorites that the whole family is sure to enjoy. Click here for more information and the list of the bands that will be playing each week.

Freehold Township Day – Don’t miss this annual fun-filled festival from 4pm-11pm at Michael J. Tighe Park. There will be free rides for kids, a free teen center with a DJ, live performances throughout the day, food trucks & local vendors with items for purchase, and a free fireworks display starting at 9pm. Learn more here.

July 15

Pirate School Family Show (Seaside Heights) – Your little buccaneers will learn how to talk, laugh, and act like a pirate, and most importantly – sail a ship without sinking your budget at Pirate School. This free show takes place on Pier Stage on Tuesday, July 15th and Wednesday, July 16th – with two shows each night beginning at 6pm and 7pm. A swashbuckling adventure is promised, along with audience participation, exciting props, and magic. Click here for additional information.

July 19

Summer Stroll (Ocean Grove) – Take a stroll through stunning fine art pieces in Ocean Grove’s Business District, along Main Avenue between Central and New York Avenues – from 4pm-8pm. The sidewalks will be lined with art that is on display and for sale. There will also be live jazz music and refreshments to enjoy. There is no entry fee to attend, but you may purchase any of the art that is for sale. Click here for additional information.

July 20

Family Nature Day (Middletown) – You can explore more and spend less at a Family Nature Day held at Huber Woods Park Environmental Center from 10am-11:30am. You will enjoy an animal presentation, a guided nature walk, and a craft suited for children of all ages. You can visit this webpage to learn about the Environmental Center or call (732) 872-2670 (ext. 0336) for information regarding the event.

July 23

Monmouth County Fair (Freehold) – If you didn’t quite get your fill of fairs for the summer, the Monmouth County Fair is taking place from Wednesday, July 23rd through Sunday, July 27th at various times at the East Freehold Showgrounds. There will be unique exhibits, thrilling rides, classic games, live music, food vendors, and more. There is an entry fee of $10 per person – and children ages 12 and under, veterans, and active military with ID – are free to attend. Ride wristbands are available for purchase at $30 Wednesday-Friday, and $35 Saturday & Sunday. You can find more information here.

July 26

Italian Festival & Wine Tasting (Oceanport) – Say ciao to a taste of Italy without leaving the Jersey Shore – at Monmouth Park on Saturday, July 26 and Sunday, July 27 from 11am-5pm. Along with the chance to purchase mouth-watering Italian favorites of the area, you can also partake in an Italian wine tasting if you are 21 or older. There will be family-friendly activities in the picnic area, as well as races on the racetrack. Wine sampling tickets are $15, and general admission to the racetrack is $6 the day of the event – and children ages 12 and under are free to attend. Click here for additional information and to purchase tickets online.

Protect Yourself from Social Security Scams

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With millions of Americans receiving Social Security benefits – whether it’s retirement, disability, or others – fraudsters have found impersonating the Social Security Administration (SSA) to be a lucrative scam. With the countless methods of communication in today’s day and age, it can be challenging to distinguish between legitimate messages and those from scammers. Whether you or someone you know currently receives Social Security benefits, or will one day soon – understanding the different Social Security scams and how to spot them is a powerful tool in protecting yourself and those you love.

What are Social Security Scams?

Social Security scams involve a fraudster impersonating Social Security employees to obtain personal or financial information. They will say there is a problem with your benefits and pressure you to take immediate action to resolve it, whether that is handing over your Social Security Number or providing payment in a specific form – such as gift cards or cryptocurrency.

It’s important to note that anyone who contacts you first and asks for a form of payment to resolve a personal or financial issue, especially when they are requesting gift cards or crypto (methods of payment that are nearly impossible to trace) – is always a scam.

What Does a Social Security Scam Look Like?

Scammers frequently change their tactics and messages to make themselves harder to spot, and easier to obtain the information they need to defraud you. Scammers impersonating Social Security personnel may attempt to contact you via phone, email, text message, or social media direct messages. The SSA is known to contact the public only by telephone call or direct postal mail, and will never text you or send you a message on social media. Below are common Social Security scams, based on mode of delivery.

  1. Phone Calls: Scam phone calls will involve a robotic voice, pretending to be from the SSA and will demand personal or financial information. The nature of these phone calls is often threatening, with pressure to take immediate action to resolve the issue or provide personal information. The SSA would never take a threatening tone with recipients of phone calls and if you receive this type of call, it’s a telltale sign that the call is fraudulent. Additionally, the scammer will often demand secrecy and ask that you don’t share the details of the call with those you trust. Lastly, if your caller ID shows the Social Security hotline number – that does not necessarily mean you are on the phone with a SSA employee. Scammers can spoof their phone number to make it look like the Social Security Administration on your caller ID.
  2. Emails: Scammers have been known to send emails with attachments that resemble official letters from the SSA or contain links to fake websites that looks like the Social Security Administration website. Within such an email – you will be prompted to enter your sensitive information into an online form that does not belong to the SSA, or click on a link that will download malware or a virus onto your device – which the scammer will use to steal your sensitive information.
  3. Text Messages: Social Security scam texts will often say there is a problem with your Social Security Number and will provide a call back number to resolve the issue. When you return the call, you will be on the phone with a scammer who will try to take your personal or financial information. There are very few instances in which you would receive a text from the SSA, which can be found here. In those cases, the SSA will never ask that you return a call to an unknown number – especially one that is not associated with the Social Security Administration.
  4. Social Media Direct Messages: Fraudsters have been known to create fake social media accounts pretending to be the SSA. They will then use those accounts to send direct messages asking for your personal or financial information. Once again, the SSA will never contact you through social media. These fake accounts will often have few followers, incorrect punctuation or spelling, and link to pages, forms, or documents that are not associated with the SSA. Visit ssa.gov/socialmedia for a directory of the social media channels the SSA uses for public information.

Stay Vigilant to Social Security Scams

The SSA will never demand that you share your personal information, such as your Social Security Number or bank account details, by contacting you out of the blue or in ways that are not secure. Additionally, Social Security employees will never demand payment, threaten arrest or legal action, or freeze your bank account or other assets if you refuse to divulge your personal information.

If you have received a suspicious communication or are worried you have fallen victim to a Social Security scam, you can report it to the Office of the Inspector General at oig.ssa.gov/report. It can also be reported to the Federal Trade Commission (FTC) at reportfraud.ftc.gov.

First Financial wants to help you safeguard your personal and financial information from fraudsters. If you are ever concerned that your First Financial accounts have been compromised, don’t hesitate to call us at 732.312.1500 or visit your local branch.

How Much House Can I Actually Afford?

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If you’re finally ready to buy a house after years of saving for a down payment, congratulations – this is an accomplishment worth celebrating. Now that you’re officially on the hunt for your dream home, you might be wondering exactly how much you should spend. You don’t ever want to be “house poor,” a situation in which you spend such a large portion of your income on homeownership – that you are not be able to afford much else. So what’s the best guidance on what is potentially the biggest purchase of your lifetime? Here’s the truth: Just because a lender approves you for a loan, doesn’t mean that figure is right for your budget.

Your Lender Doesn’t Know it All

Lenders work with the financial information you provide on paper, as well as your credit history. They won’t know how tight your budget might already feel. In other words, you are the only one who can make sure you’re not overextending yourself.

Additionally, buying a home is different from most other purchases because it requires you to look far into the future. You’re not just thinking about what you can afford right now, you’re planning for the next 5-10 years and even beyond that. Will your income change? Will you start a family or your own business? Many loan decisions are often made with the assumption that everything in your financial life will go perfectly. Unfortunately, that’s not how real life works. It’s important to leave yourself some financial breathing room, and plan for the unexpected.

Don’t Count on Future Salary Increases to Make it Work

Even if you’re not earning a large income yet, lenders could still approve you for a bigger mortgage than you might be ready for. Counting on future raises can leave you stretched too thin today. The smarter move is to buy a home that fits your current budget. Your home should not only be a comfortable place to live, but it should also be a place you can comfortably afford.

Be Cautious with Loan Terms

When you first start shopping for a home loan, you may come across different types of mortgages – and it’s important to understand exactly what you’re signing up for. For most buyers, the safest bet is a 30-year fixed-rate mortgage. With this type of loan, your interest rate stays the same for the entire life of the loan. That means your monthly principal and interest payments will remain consistent for three decades, making it easier to plan and budget for the long haul.

Think Beyond Your Monthly Payment

When you think about how much you’ll owe every month as a homeowner, it’s easy to focus just on your monthly mortgage payment – but homeownership actually includes much more. You’ll need to pay property taxes, homeowner’s insurance, utility bills, maintenance, and potential repairs – and that’s not the end of it. We recently published a blog discussing some common expenses associated with homeownership, so that you can more accurately budget for the “true cost” of your home.

How Do You Figure Out What You Can Afford?

Know Your Why: Start with your personal goals. Are you looking to stop renting, start building equity and put down your roots? Do you want to settle down in a specific neighborhood or school district? Your “why” will shape your decision just as much as your finances.

Set a Real Budget: One of the best tools to help you get started, is a home affordability calculator which includes taxes and insurance. There are some great examples of mortgage comparison and budget calculators available on our website.

Beyond online tools, take a closer look at your real-life spending. How much of your income goes to necessities? What if anything, are you saving? Do you have other debt? Many of us don’t have a real picture of how much we’re spending every month on non-essentials, and being aware of that is one of the best ways to save for what really matters.

Additionally, mortgage interest rates impact how much house you can afford. Right now, rates are hovering around 6.8% nationally, which may feel steep compared to the lower rates we saw just a few years ago.  Historically, 6% is an average mortgage rate. The key is to determine what monthly payment feels most comfortable for you.

Research: Your personal finances are only one part of the equation. Local real estate markets vary widely, so it’s important to thoroughly look into the details of the area where you’re looking to make your home purchase. Research real estate trends, property taxes, and the availability of homes within your price range.

Also consider expanding your search area. Some “hidden gem” neighborhoods might offer better value than the ones the majority are targeting. Working with a trusted real estate agent and/or a financial planner can help you make smart choices and stay grounded.

First Financial is here to help you navigate the homebuying process and buy the right house for you, so you can turn your house into a home without financial strain. If the area you’d like to call home is within Monmouth or Ocean Counties in New Jersey, you can begin our mortgage application process online – or get a pre-approval if you’re just starting to shop.* You can also visit a local branch, call 732.312.1500 – Option 4, or complete our quick inquiry form and a mortgage expert will set-up a phone call to answer your homebuying questions (no commitment required). Happy house hunting!

Article Source:

https://www.crossstate.org/about/communications/blog/how-much-house-can-i-afford/

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.