Buying A Home In New Jersey – The Home Buying Process
Buying a home will likely be the biggest investment you will make in your lifetime and will require considerable time and effort before you settle for one that fits your lifestyle, much less your budget are requirements. You’ve heard about the seemingly endless paperwork, the frequent visits to properties, and the occasional unnerving experience of someone else telling you how much you can afford for a new home. But here’s the good news: when you hire the services of a professional realtor like BrayBurns Properties, who has solid track record for delivering sound, reliable, and objective advice to thousands of home buyers across the state, your journey to buying your dream home will be a lot more pleasant than what you’re made to believe.
1. Shop for mortgage rates and terms.
We recommend that you learn as much as you can about how the process works because there are so many moving parts when acquiring real estate financing that you need someone who can take you through the complex maze. A mortgage broker most likely be your greatest resource because they will not only be more cost effective than your local or mega bank but will have a breadth of products and resources the retail banks cannot touch. After locating and meeting with your mortgage broker it is time to find a real estate agent. Your mortgage broker may have a good team in place and it would be wise to see if he or she could help you locate an agent.
2. Prequalify for a loan.
At this stage, after having identified and compared mortgage rates and terms from various lenders, we encourage you to get pre-qualified for a home loan. When a financial institution pre-qualifies you, they are basically determining, based on income, debt, and other variables, your “mortgage threshold,” or how much capital (principal + interest) you ought to be allocating on monthly basis towards the purchase of a home. Once pre-qualified, you’ll be one step closer to settling in a home of your dreams. Note: home sellers give preference to prequalified buyers as opposed to those who are not. Think about it.
3. Hire a Buyer’s Agent.
For starters, once you will have committed yourself to buying a home, we recommend that you enlist the services of a buyer agent, who will ultimately be responsible for representing you – the buyer—as you scour the market for your ideal home. Some of the functions performed by a buyer agent include researching the market for homes that meet your criteria, assisting with paperwork prior to engaging in a real estate transaction, and assessing the need to hire third-party professionals, such as inspectors and lawyers. For a more comprehensive list of what buyer agents do, where to find them, and how they compare to sales or “dual agents,” contact one of our associate brokers today.
4. Define what you want.
The next step is to think long and hard about the property that you would like to own along with the features in and around it. Make sure to distinguish between what you would like to have (wish list) and what you absolutely require for your new home. As you build your list of must-haves (a basement) and “nice-to-haves” (a Victorian chandelier), we recommend that you do some preliminary research online to see what’s out there that meets your criteria. As you may have already found out, the VRM is packed with information on homes for sale.
5. Visit properties
After lining your ducks in order in terms of what you want and need in your new home and identifying one or more prospective homes online, it’s time you get a firsthand, 3-dimensional look at some of them. Once at the property, ask as many questions as you can to either the seller or agent and do a thorough review of the property’s features? inside and out.
6. Determine which features affect the home’s resale value
As a prospective homeowner, you should factor into your decision making the interior and exterior features that will influence a home’s resale value. For example, in some areas of the state, all-wood patios can make the home harder to sell as opposed to ones without, while in some areas, 2-door garages will make the home’s resale value more attractive, all things being equal of course. Consult with a one of our professionals to know which features will positively or negatively impact a home’s resale value.
7. Develop a grading system
Devise a grading scheme that will help you narrow down and ultimately choose a home that best meets your criteria. Highlight the pros and cons of each home you visit and see how they stack up to one another. Your grading scheme can cover areas like outdoor noise levels, interior space density, condition of fixtures, level of renovations required, access to major highways, etc.
8. Make an offer.
Once you’ve decided on home that you would like to purchase, it’s time to roll up your sleeves, dust off the calculator, and begin negotiating with the seller for a price that’s in your target range. One of our associates will be by your side to guide you through this critical stage.
9. Arrange for a home inspection.
If and after your offer has been accepted, we recommend that you hire a certified a home inspector to identify any problems associated with the property— faulty foundation, leaky pipes, infestations, etc. One of our professionals can help you in three ways during the home inspection phase: 1) Recommend an honest and reputable inspector, 2) Negotiate on your behalf for the best deal once the home inspector’s report is finalized, and 3) apprise you on Home Protection plans that could save you money in the long run.
10. Finalize the close
Prior to closing the deal, ensure that all required deposits have been made and all necessary paperwork completed. Leave no stone unturned at this stage, as you will likely be mired in financial and technical detail that will make all the preceding steps look like a walk in the park.
11. Be proactive and plan before moving in
We recommend several helpful things before settling in your new home. These include running the electricity, gas, and water; restoring hard floors and/or carpet, and notifying intuitions, such as your bank and postal office, of your new address. Remember, planning ahead of time will save you a lot of grief and pave the way for a smooth transition to your new home.