Step by Step Buyer’s Guide

Do you know where you want to buy? Do you want a condo, townhouse, single-family home, or multi-family home with potential to rent? Do you know which features you like and dislike? Do you know what’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.

Don’t worry, I am here to help you through all of this! This is simply where I am going to start our journey.

It is important to understand your comfort with a particular monthly payment, but the mortgage company may not be in sync with that number. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause challenges when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as most sellers won’t entertain offers from those who aren’t already prequalified for a loan.

This should be the most enjoyable step of the entire process (other than moving in!). I will arrange showings of homes you’re interested in, that are within your price range. Then, while I am there I will take note of what is important to you and I will let you know what issues the home may have, before you make an offer, not after you move in. I want you to feel confident and educated when putting in an offer. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities, like schools and grocery stores.  If there is something that you can’t figure out, just ask and I will get you all the answers you need.

STEP 7: START ATTORNEY REVIEW

(NJ ONLY)

If you are buying in the state of New Jersey, you have another step in the home buying process, called attorney review. Attorney review is a 3 day period in which both the buyer and seller have their Real Estate attorneys look at the contract and have time to contest it. In which time, the contract is disaffirmed, (which it always is) your attorney will prepare a rider and go over it with you. The rider is an addendum to the contract, to make sure both parties are clear on the terms of the sale and they are protected. The attorneys approve these new provisions with their respective clients and if all parties agree, all sign and you are now under contract.

Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose the mortgage that best suits your needs. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.

No one looks forward to all the paperwork involved in buying a home, but it is a necessary part of the process. Fortunately, everything will be arranged by your lender, your attorney and title company. When you’re finished, you’ll know you are the legal owner of your new house.