Purchasing a home is a major financial decision. It very well could be the most expensive purchase that you ever make. While the process can often times be frustrating, we at Sandelands Eyet LLP are here to help make that process as seamless as possible. After you determine what towns or neighborhoods in New Jersey you want to live in, you should to determine what you can afford. Your monthly housing budget should include such things as the cost of the principal and interest on your mortgage, property taxes, utilities, and home upkeep. Armed with your budget, next seek out a lender and obtain a mortgage pre-approval.
Once you have the pre-approval, choose a realtor, decide on a timetable for closing, and then go house hunting! After you make an offer and the contract is executed, the attorney review period will begin. Here, the attorneys for the buyer or seller can request that changes be made to the contract. Also during this period, either side may cancel the contract for any reason or no reason at all. Within three business days of the full execution of the contract, the attorney for either side can request that changes be made. When the initial attorney review letter goes out, the attorney review period is automatically extended until the buyer and seller come to an agreement as to the requested changes.
After the items in attorney review are resolved, the transaction proceeds into the inspection phase. A general home inspection report will be done, which includes a test for radon and a wood destroying insect report. Based on these results, additional reports from more specialized contractors may be necessary. If major issues are found, counsel will negotiate repairs or credits.
While the home inspection phase is proceeding, various other items will be addressed, such as the lender’s appraisal of the property and determination as to whether the property is in a flood zone. Additionally, the buyer will get the final mortgage commitment, and will order a survey and homeowner’s insurance.
After the above issues are resolved you are in the home stretch. Plans should be made with the movers and arrangements should be made to change over the utilities. On the day of closing, a final walkthrough will be done to make sure the property is vacant and in the condition expected. The last step before enjoying a new home is the closing, where the buyers sign the mortgage loan documents and become owners of the property.
We are a full-service New Jersey real estate law firm and are here to assist you! If you would like a free consultation regarding a potential real estate transaction, please call 908-470-1200.