Are you ready to take the exciting leap into home ownership in the Garden State? Buying a home in New Jersey may seem like a daunting task, but fear not. We’re here to guide you through the process step by step. Let’s take a closer look at the home buying process here in New Jersey. Hello, this is Jim Remler and I’m the team lead with the 1906 Property Group with Coldwell Banker. I wanted to take a couple of minutes to explain the New Jersey home buying process, and I got it down to about 10 easy steps. But before I start, I want to say that we expect you to have a whole bunch of questions. Please, by all means, ask them all. You don’t want there to be any time in which you’re not sure of the process, have a question about a house, what a term means or unsure what the next step is.
We want to address all your questions. So let’s get started. Step number one, get a pre-approval for a mortgage. The first step in buying a home in New Jersey is to get a pre-approval for a mortgage. This involves meeting with a mortgage lender and providing them with your financial information, such as your income, credit score, and debt. The lender will determine how much you can afford to borrow and provide you with a pre-approval letter, which you’ll need when you’re making an offer for a home. Our team has a network of mortgage professionals that we’ve worked with in the past and are very happy to recommend them. So please reach out if you’re looking for one. Be prepared to eventually provide documents such as pay stubs, tax returns, bank statements, and employment history. Having these documents ready can speed up the pre-approval process.
Step two, find your dream home. Once you’re pre-approved, it’s time to start the home search. Work with one of us here at the 1906 Property Group who specializes in the area that you’re interested in. We’ll help you find the homes that meet your criteria such as location, size, and budget. Next to 10, open houses, schedule private showings with us. Ask questions and get as much information as possible so you can make an informed decision. Consider factors such as neighborhoods, schools, commute, potential for appreciation. Take notes, compare homes to help you make the best choice for your needs and your budget. Step number three, make an offer. Once you found your dream home, it’s time to make an offer. Your agent will write a standard New Jersey real estate contract, which includes details such as purchase price, contingencies, and closing date. Common contingencies include a home inspection and appraisal and financing.
These contingencies protect you as the buyer and gives you some protection issues are found during the home inspection or financing, falls through. The seller can accept, reject or counter your offer, and negotiations may take place until both parties agree on the terms. Step number four, attorney review. New Jersey it’s common for homeowners to work with an attorney during the home buying process. Once your offer is accepted, you’ll enter into the attorney review period, which is usually about three days. Could be longer, could be shorter, but usually three days is about right. Your attorney will review the contract, negotiating the legal terms, ensure your rights are protected. At the conclusion of attorney review, you’ll be officially under contract making the agreement legally binding, understanding that until the attorney review is concluded and you are under contract, anything can happen and either side can walk away without reason.
Step number five, officially apply for a mortgage. Once you write an attorney review and therefore are under contract, it’s time to formally apply for your mortgage. Your lender will review your application, verify your financial information, and submit it to underwriting for approval. Step six, home inspection. Your agent will discuss getting a home inspection. A qualifying home inspection will assess the properties condition, including structure, systems, and potential issues such as mold or pests. Based on the inspection report, you may want to request repairs or credits from the seller. The seller, again, can accept, decline or counter your request. Step seven, appraisal. Once you are in contract and have submitted the paperwork for your mortgage, the bank will order and appraisal, this is generally required by the bank to ensure the property’s value aligns with the purchase price. Step number eight, title work and title insurance.
Your attorney will order title search, and obtain a title insurance on your behalf. Title work is a critical step to the home buying process. A title company will conduct the title search to ensure that there are no outstanding liens or judgements or ownership disputes on the property. Once the title is clear, the title company will issue a title insurance policy, which protects you and the lender from any unforeseen issues that may arise with the title in the future. Step number nine, closing. Congratulations. You’re almost there. The first step in closing day is the final walkthrough. This is the last time you’ll walk through the house before you take ownership. You’ll want to make sure the house is as you expected and the final check to confirm that any home inspection items agreed to were addressed. Then we’re off to the closing. The closing is the final step in the home buying process in New Jersey.
The closing tables where you and your attorney will come together with a representative from the title company, the closer to sign the necessary documents, including the mortgage, deed, and other closing disclosures. You’ll also provide the remaining funds for the down payment and closing costs. Once everything is signed and funds are exchanged, you’ll receive the keys to your new home. Step number 10, move in and enjoy your new home, and that’s it. The home buying process in New Jersey may seem complex, but with the right knowledge and professional assistance, you can navigate it smoothly. Please understand that this is a typical timeline in generalization of the process. Your experience could be a little different. If you’re ready to take the next step towards home ownership, don’t hesitate to reach out to us at 1906propertygroup.com. Let’s make your dreams come true.
