"Knowledge itself is power"


1. Meet with your Lender

A pre-approval shows you’ve spoken to us provided initial documentation, set your budget, and considered the next steps. This can give you an advantage over other home shoppers in a competitive market.

Advantages of buying over renting:

  • Build equity and wealth
  • Pride of ownership
  • Security and stability
  • Tax benefits (consult your tax advisor)
  • It’s YOURS! Pets, neon yellow walls, smart devices, YOUR rules!

2. Find a Home

Meet with your agent to determine your wants and needs. Go in search of your perfect home 3 to 6 months before you intend to buy.

Your agent can help you be realistic about “perfect”:

  • Cosmetic fixes vs. structural issues
  • Quality of the schools
  • Proximity to major interstates and public transportation
  • Neighborhood crime rates
  • Property taxes

3. Make an Offer

Once you’ve found your dream home, work with your agent to negotiate a price and schedule a home inspection.

Emphasis on “work with your agent”:

  • Your agent will know how much other homes are selling for in the neighborhood and will negotiate on your behalf for the fairest price.
  • The inspection will confirm there aren’t any hidden problems with the foundation, plumbing, heating, cooling, and electrical systems.
  • If you want anything that’s not nailed down to be included in the sale, especially the appliances, it must be stated in the contract.

4. Apply for a Mortgage

Your application will provide us with any remaining financial information we’ll need and lock your interest rate until the closing date.

Required documentation:

  • Two most recent and complete tax returns
  • Two most recent W-2s
  • Two most recent pay stubs
  • Two most recent and complete bank statements
  • A copy of your photo ID
  • Self-employed borrowers may need to provide additional documentation

5. Underwriting & Appraisal

We’ll verify your application information, assess your credit and collateral, and order an appraisal to ensure you’re not overpaying.

The underwriting process:

  • An underwriter will complete an initial review within 48 hours.
  • If we require any additional information, also known as conditions, we will work with you to clear conditions within 2 days.
  • Your loan will return to an underwriter for final review and a clear to-close (CTC).
  • The loan processor will inform all parties of the CTC and verify the closing date and

6. Closing

Time to celebrate! After all of the paperwork is signed, you’ll receive the keys to your new home!

Arrive prepared:

  • Plan to review the final documents to confirm the rate and loan amount.
  • Bring a cashier’s check to cover the closing costs and down payment.
  • Bring your photo ID and possibly a Social Security card to confirm your identity.

To purchase a home in NJ, there are several requirements to keep in mind.

1) First, you’ll need to get in touch with an NJHMFA-approved lender and fill out a request form to be paired with up to three lenders in your area. These lenders can assist you in utilizing the Down Payment Assistance Program to help achieve your dream of home ownership.
2)Second, you may need to purchase mortgage insurance, as conventional loans require private mortgage insurance (PMI) until your loan balance reaches 80% of the purchase price.
3)Third, you will need to be prepared to pay closing costs, which in 2021 averaged $7,915, or approximately 1.7% of the purchase price of the home, although the seller may pay for these costs.
4) Fourth, it is advised that you save at least 1% of the value of your home each year to cover possible repairs. Finally, contracts to purchase real estate in NJ are subject to the buyer’s right to inspect the property for defects, and the seller must deliver a certificate of occupancy and/or a smoke detector and fire inspection certificate at closing

Ready to Purchase a New Home? Get Started Today

One benefit of buying a home is having a place to spend quality time with your family

There’s no time like right now to find out if you qualify. Getting pre-qualified for a mortgage is easy — there are only 5 questions that can be readily answered without documents or files. We’ll just need your contact information so that we can help you start the loan process. There’s no obligation, so get started now to learn how we can help you.

If you’re unsure which loan is best for your situation, inquire about our selection of loan programs and reach out to a lender to start the process!

Or use our mortgage calculators today!

Danny Biyanwela