Steps To Buying House in New Jersey

Buying a house is a huge decision that will likely impact your finances and lifestyle. It’s important to know the best way to approach it.  A large number of investors sold their investment properties during the 2021-2022 real estate market. Tenants had a hard time finding a new homes that challenging rental market. This will give you a good starting point. If you have questions, email me anytime.

Now that you have made the decision to buy a home now you can build your team.  It is important to choose your team wisely.  Consult your real estate agent  about what service providers will best handle your situation.  This blog should provide some information to help you build your team.   

The first team member that you need should be your real estate agent.  Do they serve the area where you would like to live?   Once the real estate agent has been chosen,  they will assist you with building your team.  Your agent will provide you with at least three mortgage brokers to vet.  Your mortgage broker is essential to know your buying power and how much you can afford.

As the home-buying process progresses, your real estate agent will provide other necessary services.  Your real estate agents will provide you with a list of at least three of each service.  The attorneys, the title company, and the home inspectors will find every little issue with the house.  As your agent provides you with these service providers,  it is up to you to do your due diligence.  Call each one with your questions, and decide which service providers you will use.  

Mortgage Broker

When you decide that you would like to buy a house, you will meet with your mortgage broker.  The mortgage broker will request and review your financial documents.  Based on the information that you provide, you should get a pre-qualification.  Then once the mortgage broker confirms all of your data is correct, you will get a pre-approval.

They will provide loan products that could work for you, FHA, USDA, 203k, and more; click here.  Once you get your pre-approval, your agent can search for homes that fit your budget.

Your agent must be in close contact with your mortgage broker.  When you find a house that you would like to make a purchase offer on, your real estate agent will request your mortgage broker to write an offer letter for that property.  The offer letter should reflect the actual purchase amount instead of the pre-approval amount for maximum negotiating power. For instance, if you are pre-qualified for $400,000 but make an offer of $380,000, the offer letter should be altered to represent this lower sum. If your agent sends the $400,000 letter and you make a lower offer, the seller knows they can hold out for more money.

Real Estate Agent

Finding a real estate agent to help you search for a house that satisfies your wants and needs is best. Find an agent that knows the area where you would like to live. Avoid using your cousin who lives three hours away and doesn’t know the site; this could lead to problems.  Ask your agent if you want your cousin to get a referral fee.

Once you find a house you would like to buy, your agent will write the purchase offer; you will sign the offer; your agent will then send your request to the listing agent along with your pre-approval.  Your agent will advocate and negotiate on your behalf on price and other listing items and issues related to the sale.

Your agent will find out the details about the property that may be a concern, such as if there are open permits if the home is in a flood zone, if there are any zoning issues, or if there will be any changes to the infrastructure that would change the traffic pattern?  

Dual Agent

Suppose you are dealing with a dual agent representing the buyer and the seller. In that case, it is essential to remember that the seller typically pays the commission, and the agent’s loyalty lies with the seller.  Therefore, it is necessary to be mindful of the information shared with the other party. Duel agents usually work carefully and do their best to keep everyone happy.  It is understandable if you decide to use another real estate agent if you feel that there could be a conflict of interest with your transaction.  I often consult my broker or another agent to assist my buyer in this situation.

MLS report and photos

I tell my buyers to look over every listing you see in emails and online and not trust the photos.  Truthfully, the photos look great until you see the house; sometimes, the pictures are lousy, and you are amazed when you visit the place.  This happens a lot; many agents take photos with their cell phones, and every professional photo can deceive 

The Real Estate Attorney

When choosing an Attorney when buying a house, you must consider a few things, so again, ask many questions. Do you do real estate law? Some people want to use a friend or relative who is an attorney; you shouldn’t use them if they are not real estate attorney.  Don’t be afraid to ask if they handle the type of real estate we are buying, such as  If you are trying to buy a foreclosure or a short sale.  Some attorneys specialize in those areas of real estate law.

Home Inspector

The home inspector is arguably the most important member of your team once you are under contract.  After all, spending $500-$600 to find out the house you’re buying is a money pit is money well spent.  A good inspector will get into the dark, dirty crawlspace and the sweltering hot attics for you.  Home inspectors are specially trained to know building codes and will be able to see the things that you wouldn’t even realize are problems. 

Over the last few years, most home buyers have been waiving home inspections to get the house.   When you waive the inspection, you should inspect for significant concerns, including structure, environmental, plumbing, and electric.  When you waive the inspection, tell the seller you will not nickel and dime the seller to fix minor inspection issues.  

Mold and Oil tanks

In many home inspections, your inspector may find mold in the house or an underground oil tank.  My advice when this comes up is to consult a specialist to handle this.  Some home inspectors are certified in mold. I recommend a trustworthy home inspector to my clients. Yet, I advise that they let the inspector know that a separate company will handle the mold remediation in the event of mold being discovered.  

Mold and Oil tanks do not necessarily mean you will spend tens of thousands to remediate.  I’ve seen people bail out of lovely homes that cost a few thousand dollars, especially with mold.   I advise my buyers to hire an expert to provide a precise estimate before deciding to back out.  Besides, I like using these issues as leverage to help the deal.   

Wrap up

Home-buying doesn’t have to be stressful; You might lose one or two to another buyer.  But you must move on and keep searching; you have faith in the system.  When my buyers find their house after losing other houses, nine times out of ten, they are happy with the end result. To contact a realtor click here  

Ask a lot of questions, trust your gut feeling and have fun, this will be your house for many years. 



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