Buying a house in New Jersey is likely to be the single largest transaction you will take part of in your life. Working with the right team is important to not only complete the transaction but to provide you peace of mind as well.
The real estate attorneys at Kim & Feliz, LLC can help guide you through the process effectively.
Working With an Agent
The home buying process typically begins by working with a real estate agent that will help you find the right home. Once you have signed a listing with a real estate agent, you will be able to rely on them for input on how best to proceed.
A good real estate agent will take into account your wants, needs, and budgets and show you a list of properties that fit your criteria. The agent also plays a key role in helping you understand what the right price of the property is and assists you by negotiating to obtain the best value for the property. Once you have found the right home, with the help of your real estate agent, you will negotiate the details. Some of the more important things to consider are the price, the amount of the deposit, the type of financing you will use to buy the property and the deadlines for such things as home inspection and the closing date. This information will put in writing in the Contract and the attorney review process will begin.
A real estate agent's knowledge of the neighborhood, fair market value, home buying process and your needs make them an important first part of the home buying process.
After each party receives a signed copy of the Contract, a three-day period known as attorney review begins. During this period, both Buyers and Sellers can have their Contracts reviewed by an attorney to assure that they are well-educated on the terms of the contract and are adequately protected.
During this time, attorneys for both Buyers and Sellers will make changes to the contract until an agreement is reached that works for both sides. This agreement is of course not possible without the consent of the Buyers and Sellers themselves. Therefore, good communication between the attorney and the client is crucial during attorney review.
It is important to note that signing the Contract does not mean you are obligated to abide by the terms of the Contract. In fact, during the attorney review period, either side may cancel the Contract for any reason. It is also best that any changes that need to be made to the contract, be made during this period.
The attorney review period gives you the chance to work with an attorney that can help you understand the terms of the Contract, make any necessary changes and guide you through the rest of the home buying process.
After the attorney review is completed and both parties have agreed to the changes in the Contract, the Contract becomes enforceable. As a Buyer, the next steps are typical as follows:
- Make your earnest money deposit
- Schedule inspection
- Work with your lender to obtain a mortgage commitment
The earnest money deposit is an amount of funds held in escrow, customarily by the Seller's Attorney, until closing. The deadline by which this deposit is due is outlined in the Contract and is typically anywhere between three and ten days.
Inspection plays a pivotal role in the home buying process. A good inspector can help Buyers spot defects in the property that may be of concern. Sellers may then choose to address those defects. Negotiating issues found in inspection can be a tricky matter, but with good communications, an adequate resolution can usually be found.
Working with a lender to obtain financing is arguably the most important and longest step of the home buying process. Working with the right lender assures that you can obtain the funds to purchase the house in a reasonable amount of time. Lenders need time to assure that you will be able to meet the financial responsibilities. The lender also wants to assure the house itself is a good investment and worth the value of the loan they are extending. Once these assurances have been met, the lender will issue a mortgage commitment.
Closing is the day we all have worked so hard to reach. Once the lender is ready and both Buyers and Sellers have met their obligations under the Contract, the parties can close.
At closing, the sides will sign off on documents to formally transfer the ownership of the property from Sellers to Buyers. Buyers will also need to sign documents prepared by the lender to complete their loan. The final transfer of funds will be made at this time as well. Most importantly, this is where you will be given the keys to your new home.
Real Estate Attorneys in New Jersey: Kim & Feliz, LLC
Kim & Feliz, LLC are attorneys in New Jersey who are experienced in helping individuals navigate through the home buying process.