How to Buy a House in New Jersey - Step-by-Step Guide

There is plenty to love about New Jersey, from easy access to the Big Apple to the stunning surf at the Jersey Shore. Many people move here from New York City and beyond to buy a home. 

While living in the Garden State is enticing, purchasing a home can be daunting if you do not know the process. Buying a home has a lot of nuances, from house hunting and getting mortgage loans to dealing with real estate attorneys and figuring out closing costs in New Jersey.

Whether you are a first-time homebuyer entering the housing market or looking to upgrade to your dream property, it always helps to have some guidance on the home buying process. That is why we've pulled together the below guide on the steps to buy a home in New Jersey.

Steps to buying a house in New Jersey

• Get pre-approved 
• Start your home search with a buyer's broker
• Secure a commission rebate 
• Place an offer 
• Be prepared to negotiate 
• Attorney review and inspections
• Get your mortgage and appraisal completed 
• Final steps before closing

Get pre-approved for a mortgage

Before searching for a home, you must ensure your financing is in place. Getting pre-approved for a mortgage can help narrow down the price range you can consider when buying a New Jersey home.

Mortgage lenders will assess your income, credit score, and other financial factors to evaluate your qualifications for a loan and the maximum amount you can qualify for, and what you can handle in monthly mortgage payments. You want to start the pre-approval process early so that when you’re ready to make an offer, you’ll have a higher chance to stand out from buyers who still need their financing locked in. 

Be sure to meet with multiple providers and diligently compare terms and interest rates to find a loan that works best for you. 

Start your home search with a buyer's agent

One of the most exciting parts about buying a home is browsing potential listings. 

Yet, this can be a lengthy process if you go it alone. Working with a dedicated real estate agent can be a great way to speed up the house search, as they can prioritize your needs and help pinpoint homes that best match your preferences, including location, size, and amenities. 

Some brokers even offer online tools to speed up the discovery process. Prevu Real Estate lets buyers enter their ideal home type, location, and preferences into a personalized profile. When a home that fits your search criteria hits the market, you get email alerts that a listing matching your needs is available.

Secure a commission rebate 

It is no secret that buying a home in New Jersey is an expensive endeavor. 

Purchasing a property is one of the most expensive transactions most people will undertake, and even if you save up for years, the combination of a down payment and closing costs can drain your bank account. Yet if you work with a buyer’s agent offering a commission rebate, you can expect to receive thousands of dollars when you close a deal on your dream home. 

Sometimes called a buyer rebate, the process of a commission rebate allows your buyer’s broker to return a portion of their broker fee to you at closing. Prevu Real Estate offers the largest commission rebate in New Jersey, totaling up to 1% of the home's purchase price. 

For instance, if you purchase a home in Hoboken for $1.6 million, you can receive up to $16,000 cash back via a buyer’s rebate. These funds can go a long way towards rebuilding your savings or helping to furnish your home. 

Place an offer 

Once you find a home that fits your needs, it is time to make an offer on a home. 

Having a buyer’s agent helps here. They can use their knowledge of market conditions and comparable sales in the areas you are searching to help you craft an attractive bid for a home. The offer will include the purchase price, an earnest money deposit, any relevant contingencies, and a timeline for a seller to respond to your offer.

The offer will also include details about the target closing date and any additional requests you wish to make, such as repairs or included appliances.

Once your offer is ready, your agent can present it to the listing agent on your behalf.

Be prepared to negotiate 

After the seller reads your offer, they can accept it as is, reject it outright, or respond with a counteroffer proposing different terms. If your offer aligns with the seller's expectations and priorities, you are clear, and it is time to move to the next step. 

Yet you should be ready for the seller to propose a counterpoint around repair requests, closing costs, or even your offered purchase price. That is why if you really like the property, offering a competitive sale price can woo the seller. But if your offer gets rejected, don't lose heart. 

Chances are you can get some feedback from the seller and hope they provide a counteroffer. These usually entail adjustments to your purchase price or other terms you outlined. After a back-and-forth between you and the seller will reach a consensus, and both parties enter into a legally binding contract. 

The contract outlines all the agreed-upon terms, including the purchase price, contingencies, closing date, and other negotiated provisions. At this point, you can order home inspections. 

Attorney review and inspections

In New Jersey, the buyer and seller are entitled to an attorney review during the real estate transaction. 

The review period must occur within three business days after the seller accepts the offer. This process allows legal professionals hired by the buyer and seller to examine the contract and ensure it protects their clients' interests. 

The attorney will thoroughly review the contract, paying close attention to the terms, contingencies, and potential legal implications. Any issues found will be communicated to the other attorney to negotiate and amend the contract. 

As this happens, the buyer will want to schedule a professional home inspection during the attorney review period. The assessment will give you a bill of health on vital features like electrical systems, plumbing, HVAC, roof, and more. 

Timing the inspection is critical, as you want to be able to work with your buyer's broker and attorney to amend the contract and request repairs or credits from the seller. 

Get your mortgage and appraisal completed 

Once the contract passes the attorney review stage, you can work with your lender to get the home appraised and finish the mortgage application process. 

The lender will want an appraisal of the property you wish to buy. A licensed appraiser will determine the home's fair market value and inspect the house and location. 

So long as everything checks out, you will receive the loan commitment letter detailing the loan amount, interest rate, and any conditions or requirements you must satisfy before the closing date. 

Final steps before closing

As you approach the closing date, you must secure homeowners insurance and engage with a title company. The title company will do a title search on the property to make sure the home can be legally transferred to you. 

Afterward, you can do the final walkthrough, during which you’ll have time to ensure that the property is in the agreed-upon condition and that any repairs or changes were addressed. 

On closing day, you, the seller, attorneys, and a representative from the title company will come together to finish the deal. Be ready to sign mortgage agreements, the deed, and other closing statements. 

Have a wire transfer ready, as this is when you pay closing costs and the down payment. These costs typically include fees for services such as title search, title insurance, attorney fees, appraisal fees, and other associated costs. 

Homes for sale in New Jersey

Interested in buying a home in New Jersey? Browse listings and see how much you can save with Prevu's Smart Buyer Rebate.