Buy Somers Point, NJ

1330 Bay Avenue
Ocean City, NJ 08226





Please return to this site so that I may help you with your sales or rentals

Buying a Home

Buying a home takes some homework from you, the buyers. First of all you must know how much you can afford to pay for your new home. This is contingent upon your income, your credit rating and your current monthly expenses. Before you start to look, get a copy of your credit report. Make sure the facts are correct and fix any problems that show. Usually you can afford a mortgage that is 2 1/2 times your annual salary. If you go online, you can find a good mortgage loan calculator that will also help you.

You also should know how much downpayment you can put down and what the interest rate on loan will be. There are different types of mortgages with varying rates so you must try to shop for a favorable one. You also want to look into any homebuying programs in your state. Information for homeownership in New Jersey This is the Hud website - US Department of Housing and Urban Development

After you have done these few things, you should find the right real estate agent - someone who is qualified and experienced and very knowledgeable of the area in which you are interested. Remember to buy in a good school district even if you do not have children. Your resale value will be excellent as a good school district is one of the top priorities for buyers.

Now is the time to get yourself pre-approved from the lender of your choice as this approval is based on your annual income, debt and credit history and will give you the price range of the homes you can afford. Your lender can be a bank, a mortgage company or a mortgage broker.

When you find a house or houses that you like, have your agent do a CMA (comparative market analysis) for each one of them. This will give you prices of what houses like them have sold for in the last three to six months. Decide which home you like the best and make an offer that you think is fair. It is a good idea to have a real estate lawyer draw up the agreement of sale.

Contingencies clauses should be a part of all sales contracts as they can provide legal protection. Common contingencies are the mortgage contingency, inspections such as home inspection, termite inspection, well and septic inspections if applicable and possibly radon. Your final purchase obligation will be contingent on these findings.These clauses should also specify the terms and conditions to which  the buyer and seller are obligated. Most standard sales agreements are written with these as an integral and prominent part of the agreement.

Once the agreement is accepted by the seller apply for your mortgage, order title insurance, make appointment with a home inspector and plan to meet him at the house. The other inspections usually will be ordered by the seller or the seller's agent. When you get your mortgage and all contingencies have been will be going to settlement.

Congratulations!  Soon you will be a homeowner!