The Purchase Process | NJ Lenders Corp.

The Purchase Process

NJ Lenders Corp.

The Purchase Process 6 Steps to Buying a Home Buying a home is an important and exciting milestone,

6 Steps To Buying A Home

Buying a home is an important and exciting milestone, but it can be intimidating when you’re not sure what to expect.

Here at NJ Lenders, we offer you easy-to-follow strategies that cover your path to homeownership. We take pride in offering individualized support to all of our clients that are looking for a new home. Listed below are six easy steps for buying a new house: 

Step 1: Preparing to Become a Homeowner

Before you begin the process of buying a house, you want to make sure that you’re actually in a position to become a responsible homeowner. That’s why the first step is to check your credit score and review your financial situation. 

Your credit and financial history influence your ability to obtain a mortgage, as well as your interest rate. Buyers with higher credit scores tend to secure better interest rates, so it’s important to understand where you stand when beginning the purchase process.

You will also need to have funds saved for a down payment. The minimum down payment on a conventional loan is 3%. However, keep in mind that a larger down payment will bring greater equity and lower your monthly payments. By paying more upfront, you’ll save on interest and be less likely to have to pay for private mortgage insurance. 

Step 2: Getting Pre-Approved for a Mortgage

Pre-approval allows you to determine the best loan and repayment options for your income level and financial history. Getting pre-approved for a mortgage also accomplishes the following in today’s competitive market:

  • Jumpstart the approval and documents’ handover process

  • Makes your offer more appealing to both the seller and the real estate agent

  • Solidifies loan amounts and purchase prices within your budget

NJ Lenders offers a variety of resources to help you determine your current position and which price range is best suited for you. 

Step 3: Exploring Your Loan Options With NJ Lenders Corp.

The market offers plenty of loan options to homebuyers: conventional, jumbo, VA, FHA, 15- and 30-year fixed, hybrid, and more. Low-interest loans come with longer repayment terms, whereas short-term loans carry higher interest rates. With each loan having a specific list of requirements and conditions, it’s best to consult with a trusted and experienced loan officer at NJ Lenders Corp. to explore your options so you can feel confident when making your final decision.

Step 4: Finding the Right Real Estate Agent 

Now that you’ve verified your credit history and decided on a particular loan option, the next step is to contact a realtor. Real estate agents offer guidance and specific knowledge of the house-hunting process. When it comes to creating the initial purchase agreement, your real estate agent will be prepared to handle counter-offers from the sellers as well. 

Step 5: Preparing to Purchase

It’s important to recognize that there will be a time-lapse between your pre-approval and closing day. During this time, you should review any relevant financial documents carefully to determine if any updates are required with respect to any changes in your purchasing power and income level. 

NJ Lenders Corp. offers assistance in reviewing every stage of your home purchasing process. Our team of experienced specialists ensures a thorough review and any updates on your loan application in a timely manner. 

Step 6: Finalizing Your Decision 

Before closing the deal, we recommend inspecting the property beforehand to search for any structural damages. Your realtor or an independent home evaluator can help you to stop any damages that may need repair and to determine a fair market value of the home. This extra step in the appraisal will help provide assurance on whether or not the property is worth your investment. 

Once you’ve found your new home, our loan officers will provide you with an agreement that contains all the terms and conditions of your loan and repayment. Once signed, you’ll be eligible to apply for homeownership. 

After your Processor completes and files your purchase agreement to an underwriter for approval, your loan documents will be ready for your signature. Congratulations on your new home!