THE NEW JERSEY HOME BUYING PROCESS
This is a guideline to be adjusted to each individual situation
1. Get pre-qualified by a mortgage lender. For a list of mortgage lenders familiar with our area please click here. This is a free, no obligation process which gives you “buying power”. Not only will your offer have credibility when presented with a pre-qualification certificate, some homeowners will not allow their homes to be shown to buyers without one. This is most definitely STEP ONE.
2. Choose a Realtor with whom you feel comfortable. This Realtor can show you any house listed with the Multiple Listing Service, so you won’t need to call every Realtor in town! Some of the benefits of consistently working with one Realtor are: your Realtor knows what you are looking for and what you have already seen, your Realtor will be more inclined to prioritize your needs if he/she knows you are working exclusively with him/her.
3. Investigate the homes in your price range. When you fall in love with the right home for you, you will be ready to make an offer by filling out a contract. Make your offer keeping in mind that most homes sell for around 98% of their asking price (if there is no competition for the home) according to Multiple Listing Service information. You should be prepared to write a $1,000.00 check to be held in escrow, indicating your commitment. You get this deposit back whether you buy the house or not.
4. The Realtor will try to negotiate a meeting of the minds between you and the homeowner. When this is accomplished, the contract may have to be changed and initialed for any new pricing or provisions. This contract is now sent to the sellers for their signature and then to both lawyers. After the contract has been signed by the sellers, the Attorney Review process begins which lasts at least 3 days.
5. After the Attorney Review is completed, you should schedule a home inspection. If you are going for an FHA mortgage, special forms need to be filled out by the home inspector for septic and pest inspections.
6. After the home inspection (you should be present to ask questions), you will decide if you want to go forward with the home purchase. If there are problems with the home, you may want these problems remedied, or you may want to re-negotiate. If the owner is not willing to remedy the problems, you can still go forward with the home purchase, or you can look for another home to buy. The only money you will be out if you do not go forward is the money for the home inspection and for the attorney's time.
7. You should also apply for your mortgage at this time, after shopping for the best rates and the best terms.
8. With your attorney’s consent, you will sign the revised contract if needed and put your deposit down to be held in an attorney’s escrow account.
9. The mortgage company will send out an appraiser. Your attorney will order a survey (or have existing survey re-certified) and title to make sure there are no liens on the property.
10. After approximately 2-3 months, a closing will be scheduled by your attorney with consideration to the attorneys’ schedules. Neither the buyer, seller, nor Realtor schedules the closing.
11. Before the scheduled closing, your Realtor will arrange a “walk-through” with the you to make sure that the systems and appliances are all working in the house, that there is a smoke and carbon monoxide detector, and that it is “vacant and broom clean” as per the contract.
12. Closing! Make sure you bring a picture I.D. and blank checks, and the certified funds that your attorney has instructed you to bring. Make sure you have turned on the utilities in your name and that you have purchased homeowner’s insurance on your new home. Bring the originals of your homeowner’s insurance paperwork to the closing, also.
Congratulations on your new home! Please recommend your Realtor to all your friends!!!
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