I found a house I love, now what?
The moment you find a home you love is so exciting!
The moment you find a home you love is so exciting, especially if you have been searching for a home for a while. This potential home checks off most of your boxes, and is in the ideal neighborhood. You can really see yourself stepping into a whole new lifestyle with this house. So what is next? It is time to make an offer!
In New Jersey, and most states in the US, submitting an offer to a seller requires several different documents to be signed by the potential buyers. We will briefly look at each of these here.
Consumer Information Statement outlines the jobs duties and descriptions of all of the agents involved in a real estate transaction. This helps buyers and sellers know what to expect in working with real estate professionals.
Mortgage Pre-Qualification Letter or Proof of Funds These are two different forms of financial proof that you, as a buyer, have the ability to pay for the house at the price you are offering. If you are financing the home, a mortgage pre-qualification letter shows that you have been preliminarily vetted by a lender, and it shows that you have the credit, income, and down payment funds available to secure a home loan at a particular purchase price. If you are paying cash for the house, you will show proof of funds in the form of an official bank statement or asset statement if you will be pulling funds from a brokerage account. The bank statement needs to clearly state the banking institution’s name and address; your legal name and address; and it must show the amount of liquid funds you have available within the last 30 calendar days.
Purchase Contract In New Jersey, offers to purchase a house are documented on a standard, state-wide, 13-page contract form. This contract form allows realtors to state your interest in purchasing a property in a standard legal format. The document includes important information such as: your legal name and address; the seller’s legal name and address; the official lot and block number of the property you wish to purchase; the offer price; the deposit amount; the full down payment about if you are using a mortgage; the terms of your mortgage; the desired closing date, and several other important details regarding property inclusions, inspections, and property condition. As the buyer you initial each page of the document and sign the final page. If the seller accepts your offer, they will initial and sign the same document on the designated “seller” lines in the contract. Once both the buyer and the seller sign the standard contract, the document becomes a legally binding agreement. Normally, in New Jersey, both parties obtain their own lawyers and the attorney review process starts.
Lead Paint Disclosure If the home was built in 1978 or earlier, then both buyers and sellers must sign a disclosure. This document acknowledges that because of the age of the home, there may be lead paint present. Buyers then have options for inspections.
Other Documents: If your buyer’s agent is also representing the seller, or if your buyer’s agent and the seller’s agent both work for the same brokerage, you will be asked to sign a “Buyer Dual Disclosed Agency” agreement.
Now that you know all of the necessary documents that are required for submitting a winning offer, tune in later for tips and strategies for how to write an offer that a seller will want to accept.
If you are interested in buying or selling a house, contact Dr. Carly York at Cyork@ResourcesRealEstate.com .
