Steps After You’ve Found the Home You Want
Once you find the right home in New Jersey, the process moves quickly and includes several legal and financial steps. This guide outlines what buyers should expect from offer to closing.
Step 1: Make an Offer
Kira, your real estate agent, will prepare a written offer that includes:
- Purchase price
- Earnest money deposit (typically 1–3% of the purchase price)
- Mortgage type and down payment
- Requested closing date
- Contingencies (inspection, financing, appraisal)
- Any special terms (seller credits, included items, etc.)
In competitive markets, buyers may also submit proof of funds, along with their preapproval letter.
Step 2: Negotiation & Offer Acceptance
The seller may:
- Accept your offer
- Reject it
- Counter with changes to price, dates, or terms
In New Jersey the contract is not yet final, until out of attorney review.
Step 3: Attorney Review (NJ‑Specific)
New Jersey requires a 3‑business‑day attorney review period after both parties sign the contract.
- Both buyer and seller attorneys review the contract
- Either party can cancel or request changes
- No inspections or appraisals are scheduled during this time
Once attorney review ends, the contract becomes legally binding/under contract.
Step 4: Schedule Home Inspections
After attorney review, buyers schedule inspections (typically within 7–10 days):
- General home inspection
- Radon test
- Termite inspection
- Oil tank sweep (if applicable)
The report will detail any structural, electrical, plumbing, or safety issues.
Step 5: Inspection Report & Negotiations
Following inspections, buyers may:
- Accept the home as‑is
- Request repairs
- Request credits
- Negotiate a price adjustment
All negotiations are handled through agents or attorneys until an agreement is reached—or the contract is terminated. Based on the inspection report, you can request the seller fix specific issues, reduce the price, or offer a credit at closing. The seller can agree, counter, or decline.
Step 6: Mortgage Application & Appraisal
Once inspections are resolved:
- Buyer submits full mortgage application with all required documents — pay stubs, tax returns, bank statements, and employment verification (most should have been submitted during preapproval process).
- Lender orders an appraisal to confirm value
- Buyer submits documentation to underwriting
Your lender orders an independent appraisal to confirm the home’s market value. If it comes in below the purchase price, you’ll need to renegotiate, pay the difference out of pocket, or walk away.
Step 7: Final Loan Approval (“Clear to Close”)
The lender completes underwriting and issues a Clear to Close, confirming:
- Loan terms are approved
- Buyer’s finances and documentation are verified
- Closing date is confirmed
At this point, the transaction is on track to finish.
At least 3 business days before closing, your lender sends this the closing disclosure document outlining your final loan terms, monthly payment, and exact closing costs. Review it line by line and compare it to your Loan Estimate.
Step 8: Title Search & Insurance
The title company:
- Confirms the seller has clear ownership
- Checks for liens or legal issues
- Issues title insurance to protect the buyer and lender
Any title issues must be resolved before closing.
Step 9: Final Walk‑Through
Within 24 hours before closing, buyers complete a walk‑through to ensure:
- Property is in agreed‑upon condition
- Repairs were completed
- Home is vacant (unless otherwise agreed)
This is not another inspection—just a final check.
Step 10: Closing Day
On closing day:
- Buyer signs final loan and title documents
- Funds are transferred
- Deed is recorded
- Keys are released
Bring a valid ID and cashier’s check (or confirm wire transfer) for closing costs and down payment. Sign all loan and transfer documents. Once funds are disbursed and the deed is recorded — the home is yours!
Common Buyer Costs in New Jersey
Buyers should budget for:
- Down payment
- Home inspection fees
- Appraisal fee
- Attorney fees
- Title insurance
- Mortgage lender fees
- Prepaid taxes and insurance
Your lender can provide a Loan Estimate and final Closing Disclosure outlining all costs.
Final Thoughts
Buying a home in New Jersey includes important legal protections, especially attorney review and inspections. With the right guidance and preparation, buyers can move through the process confidently and smoothly.
