Home buyers tend to have a lot of questions about the real estate closing process in New Jersey, including what it entails and, and how long does it take? Will the seller be present? What kind of paperwork will I be signing? This article addresses those questions, as well as others about the home closing process in New Jersey.
What is “closing” exactly?
From the buyer’s and seller’s perspective, closing represents the final step in the real estate transaction. There are some other things that can take place after this step, but as far as the home buyer is concerned, the real estate closing finalizes the transaction.
During this process, property ownership is officially transferred from the seller to the buyer. This happens through the transfer of the deed. There are other documents to be signed during this process as well, and we’ll talk about those in a moment.
When does it take place?
The real estate closing process in New Jersey is typically scheduled by the home buyer and seller. It’s part of the negotiating process. When a buyer submits an offer to buy a home, it usually includes a proposed closing date. If the sellers agree to the proposed date (and other terms of the deal), they’ll sign the purchase agreement and the transaction can move forward.
In New Jersey, the closing is often scheduled for 30 to 45 days after the agreement has been signed. But the timeline can ...
The new changes will benefit the overall condominium market and enhance options for customers
NJ Lenders is happy to announce that on June 5th, 2018, Fannie Mae has made several positive updates to their condo, co-op, and PUD project policies. The Project Standards Update will now help simplify the policies and guidelines for our customers, and as a leading condo lender, NJ Lenders believes these changes will certainly help benefit the overall market and our clients.
“Fannie Mae’s recent changes will provide more liquidity in the condo market,” said Steve Grossman, Executive Vice President of NJ Lenders. “The changes will have a positive impact on consumers, and a number of projects that were difficult to obtain financing for are now going to be eligible for conventional financing.”
Please note that lenders can start applying these changes when reviewing projects effective immediately. The Selling Guide has also been updated to include references to these new forms.
For more information on the changes and updates, please refer to the following bullet notes that help describe the summary of the Project Standards Updates:
- Waive the single-entity ...
Underwriting is an important part of the mortgage process in New Jersey. It’s also one of the most “mysterious” stages for first-time home buyers and borrowers. How does the mortgage underwriting process work in New Jersey? What should you, as a borrower, be doing during this stage? These are some of the common questions we’ll answer today.
Basic Steps in the Mortgage Process
To start with, let’s place underwriting into the broader context of the mortgage lending process. While this process can vary slightly from one borrower to the next, it usually follows a series of steps. Underwriting typically falls somewhere in the middle.
Here are the basic steps home buyers go through when getting a mortgage loan:
- The home buyer / borrower completes a loan application.
- The home buyer gets pre-approved for a certain loan amount.
- The buyer locates a suitable property and makes an offer to buy.
- The mortgage company orders an appraisal to determine the market value.
- A title search is performed to ensure there aren’t any liens or claims on the home.
- The mortgage loan file moves into the underwriting state, for a thorough review.
- The underwriter approves the loan, and the buyer moves on to the closing.
- The loan is funded at or near the closing day (sometimes a few days later).
So, getting back to the question at hand. What happens during ...
Are you thinking about buying a home in New Jersey this summer? If so, you’ll have plenty of company.
Real estate markets across the state are still highly competitive, as we enter the last month of spring 2018. In many markets, this competition is being driven by tight supply along with steady demand from buyers.
Here are three things you should know about buying a home in New Jersey, in summer 2018:
1. Rising mortgage rates could create urgency among buyers.
Average mortgage rates have risen steadily (more or less) since the start of 2018. There have been a few week-to-week declines during that time. But overall, it has been a mostly upward trend. This is based on the weekly mortgage industry survey compiled by Freddie Mac.
On May 24, the government-sponsored corporation reported that the average rate for a 30-year fixed mortgage loan rose to 4.66%. What’s notable about this is that rates haven’t been that high in a long time. In fact, you’d have to go back to May of 2011 to find average rates at that level.
For those planning to buy a home in New Jersey during summer 2018, this is an important trend to watch. It could add a sense of urgency to the house-hunting process, at least for those buyers who need to use mortgage loans to finance their purchases.
The bottom line is that home buyers might want to consider buying sooner rather than later, due to the potential for rising housing costs and ...
From day one, parents help their children with almost everything. But sometimes even adult “children” need a helping hand. This is often the case when it comes to buying a home. Fortunately, there are several things parents can do to help their children buy a first home in New Jersey.
Common Obstacles to Homeownership
For some would-be home buyers, the financial path to buying a house can seem overwhelming at first. Qualifying for a mortgage loan. Coming up with a down payment. These things can seem like insurmountable obstacles to a first-time purchaser.
It’s common for home buyers in New Jersey to get a helping hand from their parents. Consider the evidence. A 2016 survey from the National Association of REALTORS® (NAR) found that nearly a quarter of millennial home buyers got down-payment help from a family member when buying a home. Parents were listed as the most common source of financial help.
According to the NAR report: “Overall, the median down payment ranged from 7 percent for millennial buyers to 21 percent for older boomers and the Silent Generation. Nearly a quarter (23 percent) of millennials cited a gift from a relative or friend – typically their parents – as a source of their down payment.”
How Parents Can Help Their Children Buy a Home
All of this begs the question: What can you, as a parent, do to help your child buy his or her first home in New Jersey? There are several ways ...