The process begins before you start touring homes and concludes when you sign the final papers! Buying a home in the Morris, Essex, and Union counties of New Jersey does indeed have its own unique process, especially with the critical Attorney Review period.
Initial Preparation (Steps 1-4)
- Hire a Real Estate Agent: Your Real Estate Agent is your greatest resource and advocate. They provide expert guidance and accurate, up-to-date market information.
- Get Pre-Qualified: Speak with a bank or mortgage broker to determine what you can comfortably afford and estimate your closing costs. This service is free of charge and for your benefit when searching. You must present a pre-approval letter with any offer.
- Define Your Search: Tell your agent your home requirements and price range, allowing them to help you narrow down the towns that best fit your needs.
- Receive Updates & Tour Homes: Ask your agent for automated updates of accurate, new listings. Once you find a few homes you like, schedule tours with your agent.
The Offer and Negotiation (Steps 5-7)
- Find "That Feeling": Identify the home you love and get ready to make an offer.
- Make the Offer: Your broker will submit a signed contract, signed disclosures, and your mortgage pre-approval letter to the seller's agent.
- Negotiate Price and Terms: Your agent will work with the seller's agent to negotiate the sales price and other key terms. Once agreed, you sign or initial the changes, and the sellers sign their copy.
The Critical Attorney Review (Steps 8-10)
- Start Attorney Review: The fully signed contract is immediately sent to your respective attorneys, marking the beginning of the attorney review period.
- Attorneys Hash Out the Contract: During this time (typically three business days in NJ), your attorneys will review and modify the contract. Critically, either party can walk away from the contract for any reason with no repercussions. The goal is to get through this period quickly to secure the deal.
- Under Contract: Once attorney review is over and both sides have agreed to the final terms, you are officially Under Contract. At this point, terminating the contract becomes much more difficult.
Due Diligence and Financing (Steps 11-14)
- Complete Inspections: You should complete your home inspections within a few days of being under contract. This includes a possible tank sweep to check for abandoned oil tanks. Inspection issues are then negotiated with the seller.
- Appraisal and Paperwork: The bank sends out an appraiser to the home while you gather the required paperwork for your mortgage.
- Obtain Mortgage Commitment: You must secure your firm mortgage commitment by the date specified in the contract.
- Final Contingencies: Once all contingencies have been met and the Certificate of Occupancy (CO) is obtained, you are ready for closing.
Closing Day (Step 15)
- Walk-Through and Closing: You conduct a final walk-through (usually the morning of closing) to verify the home's condition, check that all systems are in working order (heat, plumbing, etc.), and confirm any agreed-upon repairs are complete. Then, you go to the closing table to sign the final documents and get the keys!
