HOME BUYERS – Discover Homes for Sale in Hoboken, NJ
Congratulations on your decision to purchase! Whether it’s your first Hoboken area home or moving onto your next investment, we know the process can feel overwhelming. Hudson Place Realty is here to help make sense of all of the information out there and guide you, the buyer, through the buying process from start to finish.
Key Steps in the Home Buying Process
Find an agent who focuses on the Hoboken and extended Hudson County areas
It is important to choose a real estate agent carefully. Your agent will be your advisor through the home buying process so it is important to choose someone that, in addition to knowledge and expertise, you can trust.
Once you have determined your budget, you should speak to a mortgage lender to obtain a pre-qualification letter. Your Hudson Place agent can recommend lenders that will suit your needs. Pre-qualification is an important step because it will give you a clearer understanding of your budget and establish your credibility as a buyer when you are making an offer to purchase a home. It will also familiarize you with the necessary documentation required to apply for a loan.
Find your home (in Hoboken, NJ or extended Hudson County area)
Finding your home may take a few days and sometimes even a few months. The timeframe to find your next home can vary greatly on availability so be sure to give yourself some time when searching. Open communication with your agent will help through this period. Many times it is best to come up with a list of the top items that your next home must have. This list of special requirements will go a long way in narrowing down potential home prospects.
Offer & Negotiation
Now that you have found your next home, your agent will guide you through the offer and negotiation process. While we understand that price is a large factor during this time, it is also important to consider closing dates, contingencies and other factors that can affect the outcome of the sale.
Contract & Attorney Review
Once you and the seller have agreed upon the general terms, your agent will prepare a standard form real estate contract for you and the seller to sign. Once the contract is signed it will be sent to your attorney to begin more formal negotiations. The attorney review period helps to avoid misunderstandings of the contract and once concluded, the contract becomes binding. Typically, this period lasts 3 to 5 business days but can last longer.
Apply for a mortgage
You will need to finalize your loan application and provide your lender with detailed financial documents. There will be quite a few documents requested to verify your income and assets.
Home inspection & appraisal
A licensed home inspector will need to be hired to examine the structural integrity, electrical, plumbing, heating and cooling systems of your new home. During the inspection, you will be advised of any items that may need attention or repair. The inspector will prepare a full report to send to your attorney. In addition to the home inspection, an appraisal will take place. This is required so your lender can evaluate your new home to determine how much to lend.
Once you have provided your lender with the financial documents required and the appraisal has been completed, you will receive a mortgage commitment. A commitment is typically issued within 30 days of completing attorney review.
The process from an accepted offer to closing averages 60 days, but may take anywhere between 30 to 90 days. Toward the end of the process you should secure homeowner’s insurance for your new home. A closing will be coordinated and a final HUD statement will be issued shortly before closing. Carefully review the HUD statement with your attorney and agent and be prepared to bring final deposit monies to your closing.
Congratulations on your new home!
Closing costs will vary depending on whether you are purchasing or selling a home. It is important to have additional money set aside in addition to your down payment for closing costs.
Buyer’s closing costs
These are only estimates. Please confirm closing costs for specific transactions with your attorney and/or mortgage representative.
Attorney $1,000 – $1,500 and up
Recording Fees $200 – $300
Title Search & Insurance (speak to your lender or attorney for more detailed information, but estimate 0.5% of your purchase price)
Origination Costs 0 – 3% of your loan
Appraisal $400 – $600
Credit Report $15 – $35
Homeowner’s Insurance 1st year premium paid in full
Homeowner’s Insurance Escrow 2 – 6 months
Property Tax Escrow 2 – 6 months
Private Mortgage Insurance (PMI) up to 1% of loan if down payment is less than 20%
PMI Escrow 2 – 6 months
Home Inspection $300 – $650
Working Capital (Condominiums) 2 – 4 months of maintenance
Move-In Fees (Condominiums) $100 – $500 (some are refundable
Mansion Tax 1% when purchase price is over $1,000,000