For buyers
First-time home buyers
Nobody is born knowing how attorney review works. Here is the version we wish someone had given us.
Start with the number, not the house
The most common first-time mistake is falling for a house before knowing what is affordable. Talk to a lender first. Pre-approval tells you the ceiling, and in this market it is what makes your offer credible.
Budget past the mortgage payment
- Property taxes. New Jersey taxes vary sharply between municipalities and can move your monthly payment by hundreds of dollars.
- Homeowners insurance. Coastal proximity affects premium and sometimes availability.
- Flood insurance. Required in some zones, strongly advisable in others. Ask for the flood zone and any elevation certificate early.
- Association fees. Common in age-restricted and townhome communities.
- Maintenance. Older Shore housing stock needs it.
- Closing costs and reserves. Separate from the down payment.
What surprises first-time buyers here
Attorney review means the deal is not final when you sign. Inspection findings are negotiated, not automatically fixed. Appraisals can come in under contract price. Oil tank sweeps and well or septic testing add steps in some towns. None of this is a crisis if you know it is coming.
Questions we get constantly
How much do I need for a down payment in New Jersey?
It depends on the loan program, not on a single rule. Conventional, FHA, VA and USDA loans all have different minimums, and some New Jersey Housing and Mortgage Finance Agency programs assist first-time buyers. A licensed lender can tell you what you qualify for. We do not quote loan terms.
What closing costs should I plan for?
Typically lender fees, title insurance and search, attorney fees, recording fees, prepaid taxes and insurance, and escrow setup. Your lender must give you a Loan Estimate and, before closing, a Closing Disclosure with the actual figures.
Can I back out after signing?
During attorney review, either party's attorney can disapprove the contract. After review concludes, your ability to cancel depends on your contingencies — typically inspection, mortgage and, where applicable, appraisal. This is a question for your attorney about your specific contract.
Do I need my own agent if the listing agent is right there?
The listing agent works for the seller. A buyer's agent works for you. You are entitled to your own representation, and that relationship is put in writing.
Not legal or financial advice
This page describes general practice in New Jersey residential real estate. It is not legal, tax, financial, insurance or engineering advice, and practice varies by county, contract and circumstance. Consult a New Jersey attorney, a licensed lender, a licensed home inspector and a tax professional about your own transaction.
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