If you are looking to purchase a home in New Jersey, then this guide will explain in detail the different stages of doing so. Before you dive headfirst into purchasing a property, it is imperative to understand the process to minimize inconvenience and also to make better-informed decisions. These steps may vary by state, so this article will focus on our area of expertise, the state of New Jersey.
Attorney Review
Once your offer to purchase a property has been accepted by the seller, the first thing you need to do is to get an attorney review. One common misconception that people have is that an attorney review should be completed in 3 days. That is completely untrue and instead of that, the requirement in New Jersey is that you have a maximum of 3 days to acquire an attorney to begin the attorney review process.
One piece of advice we have is to move through the attorney review quickly as your seller might choose to accept another better offer in the meantime.
Earnest Money Deposit
In New Jersey, there are no strict guidelines in place when it comes to the escrow process. As such, it is your responsibility to communicate with the seller about the process. In such cases, reliable listing agents like Joshua Baris from NJLux will be able to recommend the steps to take.
Doing Due Diligence
In New Jersey, you typically have 5-14 days to do your due diligence after finishing the previous steps in the homebuying process. During this period, there are a variety of tasks that buyers should do, including:
- Home inspection
- Property sweep
- Requesting land survey
- Looking into open permits
- Having a tax assessor check if the tax details provided by the seller is accurate
- Flood zones
Appraisal Process
A critical part of the home buying process is the home appraisal, where a 3rd party appraiser will come in to give their opinion on what they believe the house to be worth. During the home appraisal process, be sure to look out for and point out anything that may concern you.
Mortgage
Before the funds can be released, the escrow provider will need proof of mortgage from the bank. You will need to begin your commitment to the mortgage as soon as you are out from the attorney review. Should this phase be breached, lenders have the right to terminate your mortgage.
Final Walk-Through
A day before or on the day of closing in, the realtor will usually schedule a final walkthrough. This process is basically your last chance to ensure that the seller is holding up to his or her end of the deal. During this process, ensure that your seller has moved everything out, whatever you requested has been done and that you have proof of insurance.
Closing in
Being the final step of the home buying process, be sure to read the contract in detail. Double-check that everything is in place before finalizing the deal. Now that you have a better idea of the home buying process in New Jersey, we wish you all the best in your home buying endeavor. If you have yet to find a property in New Jersey, then this property finder might be able to help.
