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Buyer’s Guide

  1. Home
  2. Buyer’s Guide

To Buy Your Home

In the most desirable location with the most valuable purchase price You need a professional on your side
1.
1. MEETING WITH A REALTOR

NJ Licensed Agents

2.
2. MORTGAGE PRE-APPROVAL

Income, Credit, Debt

3.
3. SHOWING

A Day notice needed

4.
4. OFFER & NEGOTIATION

Contract & Pre-Approval

5.
5. PURCHASE CONTRACT

14 Page Contract

6.
6. ATTORNEY REVIEW

3-5 Business days

7.
7. DOWN PAYMENT

Either 10% or half of the down payment

8.
8. HOME INSPECTION

Home, Termite, Radon

9.
9. MORTGAGE PROCESS

Submit all documents

10.
10. APPRAISAL

Third party company

11.
11. COMMITMENT LETTER

Conditional approval

12.
12. TITLE SEARCH

Lien, Restrictions, Tax DEED, Bankruptcy, etc.

13.
13. CO/CCO FROM THE TOWN

Fire Prevention, Building Dept. Seller’s responsibility

14.
14. CD / ALTA

Breakdown of all costs and fees

15.
15. FINAL WALK THROUGH

Before the closing

16.
16. CLOSING

Wire transfer to the title company and receive keys

Looking to buy a property?

Having a professional on your side guarantees
that you find a property at the most desirable location
for the most advantageous price.

Domestic Buyer

Buying a home is one of the anticipated milestones and exciting experiences in one’s life. With the aid of trustworthy real estate professionals and an organized team of support, the buyer will be equipped to make the most well-advised decisions. The buyer can begin their search confidently because the agent will guide them through an easy to understand, step-by-step process. The agent will provide helpful information and advice for every step of the process, starting from the initial budget calculation to signing your name on the dotted line during closing and the buyer moving into their new home.

International Buyer

Even potential buyers who are not residents of the U.S., including those currently residing in Korea or China, can purchase property in the U.S. Typically, all that is required for a wire transfer are a U.S. real estate purchase agreement and proof of deposit to an escrow account. However, regulations and policies may differ depending on the region and/or bank. International residents are advised to contact their banks regarding these details.

Buying Process

1. Offer and Contract

  1. The offer consists of the buyer stating the intention to buy a property from the seller.
  2. The offer must include the 13-page standard real estate sales contract and proof of funds or mortgage pre-approval, and must be presented to the seller to be considered as an official offer.
  3. The offer outlines conditions such as purchase price offer, method of payment (cash or mortgage), closing date, purchase conditions, etc.
  4. Within 1-3 days of receiving the offer, the seller will decide on one of the following:
    • Accept – Accepts the buyer’s offer and conditions.
    • Deny – Denies the offer, usually when the offered amount is too low.
    • Counter Offer – Presents new purchase price and/or conditions. In this scenario, the buyer must decide to accept, deny, or counteroffer.
    • Highest and Best – When multiple offers are presented, the seller gives a date to all buyers to present their highest offers. The seller then chooses the highest offer. Typically, in this scenario, counteroffers are unavailable.

2. Attorney Review

  1. When the contract is formed, that is, when the seller signs off and sends the contract to the buyer, the process automatically enters the attorney review stage.
  2. The attorneys review all legal details of the contract and mediate between parties until closing.
  3. The attorney review stage takes 3-5 days.
  4. The buyer communicates with the attorney directly regarding the contract.

3. Down Payment

  1. For mortgage purchases, the down payment is usually 20% of the total purchase price. In special circumstances, this amount may be 5%~15%.
  2. FHA Mortgage down payment starts at 3.5%, however, condos must be FHA approved.
  3. The down payment is paid in two parts. The first payment is made within 10 days after the attorney review, and the second payment is made at closing.
  4. If the down payment amount is less than 20% of the total purchase price, the first payment is 50% of the down payment amount, and the rest is paid at closing.
  5. The down payment is made to the escrow account of the seller’s attorney through the buyer’s attorney.
  6. Note: Be wary of escrow account fraud. The buyer should always consult with the buyer’s attorney regarding the transfer.

4. Home Inspection

  1. Within 10 days of the attorney review, a home inspection is carried out.
  2. If the inspection reveals problems with the property, the buyer negotiates repair or credit with the seller.
  3. Normal wear and tear over time do not qualify for negotiations.
  4. Basic inspection consists of Home, Radon and Termite.
  5. Addition inspection (only when necessary) consists of an Oil Tank, Lead Paint, Sewer and Septic System.
  6. If necessary, inspection will also confirm if the Oil Tank is registered with the town hall.

5. Mortgage Process

  1. Once the attorney review is completed, the buyer submits all mortgage-related documents to the mortgage company.
  2. The mortgage company orders an appraisal through a third party.
  3. If the contract price is in line with the appraisal value and the mortgage application is approved, the Mortgage Commitment Letter is issued.
  4. The mortgage company may require a survey (a measurement of boundaries), in which additional costs will occur.
  5. Within 30 days of closing, the mortgage rate can be locked.

6. Title Search

  1. The title search is an investigative process that ensures all conditions are met for a successful property purchase. Conditions include Title, Lien, Tax Lien, Restrictions, Foreclosure History, Liability, Open Permit, Encumbrances, etc.
  2. Once the mortgage commitment letter is received, the buyer’s attorney requests a title search from a title company.
  3. If there is a problem with the title, the seller must resolve the issue, and the buyer must receive a clean title before closing.
  4. Title Insurance is protection against any problems related to the ownership of property. While optional, most mortgage companies require insurance. The cost of insurance is set by the state.
  5. Once the title search is successfully completed, the title company confirms “Clear to Close.” This is the final stage confirming that the process may now enter closing.

7. Certificate of Occupancy (CO or CCO)

  1. CO = Newly built property, CCO = Property changing ownership
  2. In the state of New Jersey, purchase of the property must be filed with the town. The town will then run a safety inspection.
  3. While the safety inspection varies from town to town, most require inspection of the following: 10 Year sealed battery smoke and carbon monoxide detector, fire extinguisher, and miscellaneous safety conditions. For Condos, every unit’s door must close on its own.
  4. The Certificate of Occupancy must be received from the town before closing.
  5. Typically, it is the seller’s responsibility to obtain the Certificate of Occupancy. However, there are special circumstances, such as bank-owned properties or short sales, that require the buyer to receive a certificate of occupancy.

8. Closing Disclosure (CD, ALTA)

  1. Before closing, the buyer receives and reviews the Closing Disclosure from the mortgage company or the title company.
  2. Once the closing disclosure is reviewed, all remaining balances (including the remaining down payment) must be transferred to the title company’s escrow account.
  3. Note: Be wary of escrow account fraud. The buyer should always consult with the buyer’s attorney regarding the transfer.

9. Final Walk Through

  1. Immediately before closing, the buyer inspects the property one final time.
  2. The main purpose is to check for any changes that may have happened between inspection and closing.

10. Closing

  1. Closing is the final stage where not only the buyer and seller meet, but the attorneys, real estate agents, and title company come together to finalize the purchase.
  2. The closing is usually mediated by the title company at the buyer’s attorney’s office.
  3. The buyer arrives 30 minutes early to sign all mortgage documents, typically 100 pages.
  4. The seller hands over all necessary items such as the house key, garage key, locks, passwords, etc. to the buyer.
  5. From forming the contract to closing, the process typically takes 2 months

Buyer’s Closing Cost

Additional fees when buying a property in New Jersey
Category Single Family / 2-4 Family Condo/Townhouse
Attorney Fee $1,000~$1,500 $1,000~$1,500
Inspection $500~$900 (Home, Termite, Radon)
$250~$300 (Oil Tank Sweep)
$250~$300 (Sewer Inspection)		 $300~$600 (Home)
Appraisal $450~$800 $450~$800
Recording About $150 for New Owner
About $250 for Mortgage		 About $150 for New Owner
About $250 for Mortgage
Survey $700~$1,000
(When requested by lender)		 N/A
Condo Fees N/A Capital Contribution: 2 to 4 Months of HOA
Move in Fee: $300~$600
Refundable Deposit: $500~$1,000
Condo Package Fee: $150~$450
Title Search $1,000~$1,600 $1,200~$1,600
Title Insurance
$200,000 About $950
$300,000 About $1,375
$400,000 About $1,800
$500,000 About $2,225
$600,000 About $2,500
$700,000 About $2,775
$800,000 About $3,050
$900,000 About $3,325
$1000,000 About $3,600
$2,000,000 About $6,350
$3,000,000 About $8,350
$5,000,000 About $12,350
Mortgage Fees Application Fee, Underwriter Fee,
PMI, Points, Prepaid Interest
 Application Fee, Underwriter Fee,
PMI, Points, Prepaid Interest
Property Tax About 6~7 Months
– Pro-rate Current Quarter
– 3 Months: Prepay Next Quarter
– 2~3 Month in Escrow		 About 6~7 Months
– Pro-rate Current Quarter
– 3 Months: Prepay Next Quarter
– 2~3 Month in Escrow
Home Insurance Home Insurance Condo Insurance, (Master Insurance)
Other Fees FedEx, POA, Wire Transfer Fee, etc. FedEx, POA, Wire Transfer Fee, etc.

Top 10 Skills for being an effective Buyer’s Agent
  1. Extensive experience
  2. Firm understanding of towns and school districts
  3. Prioritizing the client’s profit
  4. Ability to find listings
  5. Ability to build strong offers and negotiate prices
  6. Clear and transparent communication skills
  7. Effective management of the purchase process
  8. Having the stance of an advisor, not that of the decision maker
  9. Reputation and name in the industry
  10. Diverse connections and networking with other agents

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