The home buying process can be difficult to navigate without the proper help. The best thing to do would be to keep the following in your mind before you embark on your real estate journey. As a luxury real estate brokerage in New Jersey we want to share with you the 5 vital steps to the home buying process.
The 5 Step Process of Buying a Home in New Jersey
1. Get Pre-approvedBefore you look at any potential homes in the area you need to understand the level of tolerance a bank will have with you.
Know Where To GoGetting pre approved for a loan is huge in the home buying process. Knowing where to go to get this done is the start. In New Jersey there are multiple premier lenders. Click here for a list of qualified New Jersey lenders.
Income InformationThis will include any and all sources of income. Providing all types of income statements such as pay stubs, tax returns and W-2s from two years prior to conducting your search. The potential mortgage officer should give you a good debriefing about what is and is not acceptable.
Asset InformationAsset information is likely to come up during the home buying process. In New Jersey home prices are skyrocketing, it is important for the banks to know you are a safe “lend” for them. This can include bank statements, investments, things that you own at the current time.
Personal InformationYou will need to bring personal identifications as well. This will include your driver’s license, social security number, and any other background information a potential lender would like to collect. Main purpose of providing this personal information during the home buying process is to run a basic background and credit check.
ResearchThe research involved in choosing the correct lender needs to be thorough and well thought out. We recommend looking online before getting sucked into hour long meetings just to find out you already have a better offer. For a basic reference guide to see what type of rate you should be getting, take a look at the chart below. These numbers are from 2018.
2. Pick Your CommunityThis is an important step of the home buying process. From this community selection phase, you will know your price point, neighborhood, tax range, etc. Picking your community prior to the home buying process narrows your search down drastically and will help you find your forever home faster.
When you start looking for a home the culture of the town is really important. The home buying process in New Jersey can be very different depending on the town. When you are looking at homes in your price range there is a lot that goes into making the final decision other than price. New Jersey is a very diverse state and each county has its own feel to it. Here is what we feel are the defining cultures of the counties we serve.
Define a Culture
List of New Jersey Counties:Union County – A place of deep history, from George Washington marching through the fields Union County, to spending the night in the famous Stage house bar in Scotch Plains. The historic and luxury homes in Westfield are incredible as well. The area has a young, innovative and clean feel. A great place to live if you work in New York City.
Middlesex County – Middlesex County is home of one of New Jersey’s most iconic landmarks such as Rutgers University. New Jersey’s state school, Rutgers University, recently progressed into the Big 10 Conference which is the most prestigious division of college sports. These advancements in one of the oldest universities in America has caused the culture in Middlesex county to be very progressive. A lot of development is happening in the area due to the forward thinking residents.
Essex County – An area primarily known for its industrial businesses and historical landmarks such as Thomas Edison National Historical Park, Kip’s Castle, and Oakeside Bloomfield Cultural Center. Not to mention, the skyscrapers of Newark and being neighbors with New York City inspire so many.
Predict the Future
Value of the Home
3. Make Your List of Non-NegotiablesHaving a list of things you must have will help your REALTOR with your home buying process. The majority of home buyers face the same dilemma. A lot of people do not know what they want. When you are looking to buy a home you must have a sense of direction.
It might look something like this:
Electric water heater