What To Expect When Buying a Home

What to Expect When Buying a
Home?
www.anateisenberg.com
Provided As a Service By Anat Eisenberg

In this presentation you will find a step by step guide describing the stages in
the process of purchasing your home:
• Define What You Are Looking For In A Home
• Looking At Homes
• Mortgage Mortgage Pre – Approval
• Making An Offer
• Signing A Contract
• The Walk Through & Other Items
• The Closing
• Closing Costs – Legal, Inspections, Mortgage
• Finally
The process of buying a home is not only a major financial decision, It involves
emotional considerations as well. Here are the main considerations you have
to consider, and the steps required to reach your target of buying a new
home.
C: 201 - 341 – 4765 eisenberganat@gmail.com www.anateisenberg.com Off: 201.894.8004 ext 541
25 Washington Street Tenafly, NJ 07670

• Type of Home – Modern, Traditional, “Turn-Key”
condition, “Fixer-Upper”
• Features – Number of bedrooms, baths, type of
kitchen, garage etc.
• Lot size – Do you prefer a large yard? small?
• Commute – How much time are you willing to
spend commuting to work?
• Community – Are you looking for a town with
great schooling system? Urban, rural?
• Price Range – How much do you want to spend?
What Are You Looking for In A Home?

The Legwork – Looking at homes
• Now that you have a clearer idea as to what you are
looking for, I will take you to see properties that meet
your criteria.
• All the towns mentioned in our website are towns I
know very well.
• I will provide you with information such as taxes,
schools, property values, recreational facilities, etc.
• Finding the home you like may take time. However, I
will watch the market closely and advise you at once of
any new property/house that comes out.
• Also, if you see any property of interest let me know at
once, so that I can arrange for you to see it.

• It is wise to obtain a mortgage pre-approval from the
mortgage company.
• Pre-approval is a document from the mortgage
company, stating that based on the financial
information you furnished ,you are pre-approved for a
mortgage of a certain amount at specified
terms. Having a pre-approval on hand, gives you a
better bargaining position when you will make the
offer on the property/house of your choice.
• Later on, when the buyer applies for a mortgage
commitment, the lender will provide the buyer with
a Loan Estimate Document
Getting Pre-Approved

• You have found the home you like. At this point you
have to make an offer. Offers are made in writing and
are usually accompanied with a deposit to show
seriousness.
• Your deposit is kept in a trust account. If you and the
seller will sign a contract, this amount will be applied
towards your down payment. If you & the seller do not
materialize a contract, then, your check will be
returned to you.
• Keep in mind that in a “hot” market, making a low
offer on a property, may result in losing the house to
another bidder!
Making an Offer

• Once the seller and you agreed on the price, a contract will
then be signed specifying all terms and contingencies.
Residential real-estate contracts are prepared by the buyer’s
agent. Each party has three business days, during which their
attorneys may review the contract. There are certain standard
elements covered in the contract.
• Closing Date – Settlement – This is a set future date when all
parties (seller, buyer, agents, attorneys & mortgage company
representative) get together for signing all of the documents
and you the buyer take title to your new home.
• Mortgage Contingency – The buyer undertakes to obtain a
mortgage within a specified time. If unable to get the
mortgage the contract is then null & void.
Signing of a Contract

• Inspections – Certain inspections are required by the
mortgage company. These are carried out by certified
home inspection companies and cover all aspects of the
house. If repairs are required, who pays for them is
negotiable. Remember no property/house is perfect! The
home inspection is paid by you – the buyer.
• Further Deposit – Based on the size of the mortgage you
have negotiated, the contract will specify the amount of
down payment you will have to pay and when. This
additional deposit will also be placed in the trust account.
Signing of a Contract

• In between signing of the contract and the closing date,
several other “mini-procedures” have to be attended to.
• Obtaining Homeowners insurance.
• Obtaining Title insurance.
• Performing the final “Walk through” is the last thing that the
buyer does before closing. The buyers, plus the real estate
agents, walk through the empty house to check that it is in
the same condition as inspection day — except that the seller
has moved out. I advise clients to do it immediately before
closing. This gives the seller the most time to move out
properly.
• Closing costs – you will be advised by your attorney of the
costs and checks you will be required to bring to the closing.
Closing costs are usually 2% to 3% of the buying price.
“Walk Through” and Other Items

• This is the date when all parties get together, usually
at the buyer’s attorney’s office, for settling of all
accounts and signing of documents.
• Participants in this meeting are usually; Seller, Buyer,
Real Estate Agents, Attorneys and at times a
Mortgage company representative.
• During this meeting mortgage is being signed,
checks are exchanged, adjustments are made for
such items as property taxes, seller is paid and, you
the buyer get the title and the keys to your new
home!
The Closing – Settlement

• All the payments to the various parties are recorded by the attorney
on a standard form called Closing Disclosure , which itemizes the
debits and credits of the seller and buyer. Effective August 1st 2015,
this form will have to be provided to the buyer at least three
business days before closing.
• If the creditor makes certain significant changes between the time
the Closing Disclosure form is given and the closing – specifically, if
the creditor makes changes to the APR above 1/8 of a percent for
most loans (and 1/4 of a percent for loans with irregular payments
or periods), changes the loan product, or adds a prepayment
penalty to the loan – the consumer must be provided a new form
and an additional three-business-day waiting period after receipt
of the new form. Less significant changes can be disclosed on a
revised Closing Disclosure form provided to the consumer at or
before closing, without delaying the closing.
The Closing – Settlement

• Attorney Fee $750 – $1,600
• Survey (Condo $150 to $250) $450 – $800
• Recording Fees with Mortgage & Deed $200 – $300
• Title Searches/Title Policy Endorsements $250 – $500
• Title Insurance Premium – see schedule below (NJ Rates for Title
Insurance)
Legal & Title Costs
Typical Closing Costs

• Home inspection $300 – $650
• Radon Inspection $60 – $300
• Wood Destroying Insect Inspection/Certification $60- $150
• Septic Inspection (if applicable) $450 – $750
• Oil Tank Inspection (if applicable) $250 – $350
• Homeowner’s Insurance – 1 year premium $400 – $900
• Flood Insurance (if applicable) $750 – $2,000
• Prepaid Tax Adjustment (calculated by attorney at closing)
• Mansion Tax when Zoned for Residential Use – 1% of Consideration when
Sales Price is Over $1,000,000
Various Inspection Costs

• Application Fee – (Includes credit report & appraisal) $300-$600
• Appraisal $300 – $500
• PMI (Private Mortgage Insurance) usually required if mortgage is more
than 80% of purchase price
• Points – Fee paid to lender to “buy-down” (lower) interest rate on
mortgage. One point equals 1% of the mortgaged amount.
• Miscellaneous Mortgage Costs $100 – $600
Mortgage Costs

• From tracing the home of your choice to final closing, usually takes from
several weeks to months.
• The process involves many details, patience and dedication.
• As your agent, my job is to find you the right home at the best possible
price, get you the best available financing and, guide you along the way
with the least inconvenience to you.
Finally

To find out more
please contact me at
eisenberganat@gmail.com
Cell: 201.341.4765
www.anateisenberg.com

What To Expect When Buying a Home

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What To Expect When Buying a Home