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Buying a House in New Jersey — by Aliki Ellas
The following is the sequence of events you can expect to occur from the time you find your new home until the time you take possession.
Before you even begin your house hunting, it is important to talk to a lender to determine your buying power and your comfort level.
You should expect a pre-approval letter showing that you are indeed a qualified buyer. You will gain peace of mind knowing that a lender ( based on the information you have provided and upon verification) is committed to give you the loan you need to purchase your house and there won't be any surprises at the last minute.
When you have found the "right" house, the first step is to sign a contract stating the price and terms you are willing to offer. In New Jersey, all offers must be in writing; there are no verbal agreements for real estate. When this offer is presented to the sellers it is accompanied by a check, usually for $1000 made out to Coldwell Banker Realtors. This check, referred to as earnest money, is either deposited in the Broker or Attorney's Trust Account or returned to you if no agreement is reached.
Contingencies will vary according to the property and your needs as a buyer. The following are possible contingencies: attorneys' approval, house, radon and termite inspections and mortgage commitment. The purpose of the home inspection is to provide buyers with the knowledge and a better understanding of the physical condition of the home and to help them make smart decisions. When the contingencies have been met, you will be committed to purchase the house.
Most people will be borrowing mortgage money to buy their new home. In this case, a contingency outlining the terms of the mortgage should be included. The amount, term, and type of mortgage are required. Customarily interest rate is specified as "prevailing rate."
The contract must state a closing date, usually written as "on or before" a specific closing date. This date often influences the negotiations since taking possession at the seller's convenience makes an offer more attractive. The pre-approval letter from the bank or a financial lender that accompanies your offer makes a strong statement in your favor.
When all the terms of the sale have been agreed upon, the sellers will sign the contract and you will have to initial any changes that have been agreed to.
Generally within 10 days upon completion of Attorney Review, mortgage application will have been made, inspections completed and the remainder of the 10% of purchase price will be deposited in the Broker or Attorney's Trust Account, where it is held until closing. The amount and date of deposit monies will be a clause in your contract.
Within approximately 30 to 45 days, you can expect a decision by the bank on your mortgage application. Your attorney will then start to prepare for closing. A title search and application for title insurance will be made. The deed will be rewritten in your name and all paperwork necessary for settlement will be completed. If an early closing is desired and mortgage approval is certain, your attorney may start this procedure before approval is received. At the closing you will be required to have the homeowner's insurance for at least the amount of the mortgage.
I recommend just prior to closing (preferably one or two days before, and when the seller's have moved out) that you inspect your new home. I will set up the appointment with the sellers and their agent and I will be there with you. This is to verify that the home is in the same condition that it was when you went to contract and any necessary repairs have been completed.
I will also advise you so that the proper arrangements are made regarding the transfer of utilities to your name. I will give you a list with the names and telephone numbers of the local utilities for you to call and inform them about the change of ownership, effective the day of closing. Or, if you prefer, I will be happy to do this on your behalf.
Prior to closing your attorney will give you an itemized list of all expected expenses. For example, property tax apportionment, fees, fuel oil remaining, etc. It is at the closing you will officially take title to the house and are entitled to possession and the keys.
Be assured that I will be available to assist you with any questions or problems that may arise during your home search and on through the closing.
I will do my best to make it a happy experience for you.
Call Coldwell Banker Home Loans for Mortgage Pre-Approval:
866-566-6707
Aliki F. Ellas
NJAR Million Dollar Sales Club
International President's CircleColdwell Banker Residential Brokerage
21 E. Main Street, Mendham, NJ 07945Tel: 973-543-2552 (ext. 115 after hours)
Direct Line: 973-543-3918
Fax: 973-543-2067
Cell: 973-479-8059
©Aliki Ellas 2006.