BUYER’S GUIDE

STEP 1: THINGS TO CONSIDER FIRST

Before you begin your house hunting, ask yourself these essential questions:

• Location: Do you know where you want to live?
• Type of Home: Do you prefer a condo, townhouse, or a single-family home?
• Features: What features do you must have in your new home?
• Budget: Do you know how much you can comfortably afford?
• Condition: Are you looking for “move-in ready” or a “sixer upper”?

If you’re uncertain about any of these questions, it’s crucial to seek out answers now. Don’t leave your decision to chance. I’m here to guide you through this important journey and help you make a well-informed choice when the time comes.

STEP 2: DECIDE YOUR BUDGET

Notice I said to decide on your budget. A mortgage company may pre-approve you for more than you are comfortable spending, which is why you need to determine the monthly payment you feel comfortable with, before talking to a lender. This may include preparing a full household budget and considering charges that will occur once you move into your new home, in addition to the mortgage payment such as landscaping, HOA fees, and commute. It’s important to account for them to ensure you stay within your financial comfort zone.

STEP 3: PRE-QUALIFY FOR A LOAN

Unless you are paying cash for your new home you would need a mortgage. Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree with you. They may approve you for more than you need, or for a lesser amount, or deny you a loan altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, get pre-qualified by 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 sellers now a days won’t entertain offers from those who aren’t already pre-qualified for a loan. 

I can connect you with local mortgage lenders in North Jersey who will give personal attention to you and get the job done.

STEP 4: CHOOSE A REAL ESTATE AGENT

Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when a buyer’s agent can take much of the stress off your shoulders? Not only will I help you identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but I also have a knowledge of the market that you may not possess. Looking for the perfect home is exciting, but it can be a daunting task. This is where my expertise and wealth of knowledge come into play, and together we will find the one that’s right for you. 

Please be advised that as of August 1st, 2024, real estate agents must sign a ‘Buyer Representation Agreements’ with their client, the buyer, prior to showing a home, whether in-person or via live virtual tours.

STEP 5: FIND THE RIGHT HOME

This should be the most exciting step of the entire process, almost as exciting as moving in! My goal is to find homes that perfectly align with your needs and fit your budget. As a member of the Bergen County and the Central Jersey Multiple Listing Services, as well as the huge RE/MAX network, I have access to a wide range of properties, including some that haven’t hit the market yet.

Once we narrow down the list to the homes you’re interested in, we’ll schedule private tours so you can see them in person. Take note of what you like and dislike about each property, and don’t forget to explore the neighborhood. Pay attention to details like traffic patterns, parking availability, and proximity to essential amenities such as schools, shopping, parks, public transportation, and places of worship.

Feel free to send me any properties you come across online or signs you spot on the street so we can review those as well.

STEP 6: MAKE AN OFFER

Once you’ve selected the home you like, we’ll work together to craft a competitive offer based on the current market value—considering what similar homes in the area have recently sold for. I’ll submit the offer to the seller’s agent, along with supporting documents like proof of funds for a cash purchase or a pre-approval letter for a financed one.

The seller can choose to accept, reject, or counter your offer. If a counter-offer is made, I’ll negotiate diligently to secure the best possible price and terms for you and help you reach a satisfactory agreement. At this point, it’s essential to hire a real estate attorney. If you don’t already have one, I can recommend several highly regarded lawyers in Bergen County.

Once the seller accepts your offer, we’ll move on to the next step: the Attorney Review Process.

STEP 7: ATTORNEY REVIEW PROCESS

The attorney review process typically spans three business days following the execution of the purchase agreement (the offer). During this critical phase, your attorney and the seller’s attorney will review, modify, or add to the contract. This careful examination ensures clarity and prevents any misunderstandings or discrepancies before the offer becomes a legally binding contract. 

During the attorney review period, the seller retains the right to continue showcasing the property to potential buyers and entertain additional offers. Additionally, during that time both you and the seller have the option to cancel the contract for any reason. 

Once all parties agree to attorney changes (addendums) your offer becomes a binding contract. The seller will update the property’s status on the Multiple Listing Service (MLS) from “Available” to “Under Contract” and will no longer show it to potential buyers.

STEP 8: THE HOME INSPECTION

Most of the time your offer will be contingent upon a home inspection to ensure there are no significant structural issues or major repairs needed. If you don’t already have a preferred inspector, I can provide you with a list of highly recommended, licensed professionals. Whenever possible, we’ll aim to schedule all inspections on the same day, and I’ll be there with you throughout the process.

A typical inspection covers a comprehensive assessment of the entire house, evaluation of the roof, measurement of Radon gas levels, search for underground oil tanks, and detection of wood-destroying insects. Your inspector should also search at city hall for open construction permits. 

Should the inspection reveal any major issues, we can renegotiate your offer based on the required repairs, or you have the option to withdraw your offer. If there are no significant problems, we’ll proceed to the next step in the buying process.

STEP 9: APPLY FOR A LOAN

Now is the time to go back to the mortgage lender who pre-qualified you and choose your mortgage. Complete an application and provide all necessary documents to your loan officer. 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 loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with. Your lender will have your new home appraised to ensure that you are paying a fair price for the house.

STEP 11: MORTGAGE COMMITMENT

Your mortgage lender will review and process your application, all the supporting documents, and the result of the appraisal in order to grant you the loan you need. After your loan application has passed the lender’s scrutiny the lender will issue a commitment stating that you are approved for the loan. The lender is expected to issue the mortgage commitment no later than 30 days from the day you submitted your application.

STEP 13: BEFORE THE CLOSING

Your lender and attorney will provide you with the final closing costs—known as the Closing Disclosure (CD)—three days before the closing date. We will review this crucial financial document together to ensure everything is in order. At the same time, your attorney will schedule the closing date and time.

A few days before the closing we will conduct a final walkthrough of the property. This inspection allows you to confirm that the requested repairs were completed and that the home has been left in the condition agreed upon in the contract.

Now is the perfect time to make a checklist for your upcoming move to a new home:

• Arrange for your personal belongings to be delivered by a moving company.
• Update your address with the Post Office.
• Inform friends and family of your new location.
• Transfer utilities into your name.
• Secure Homeowners Insurance.