I will give you a tour of the area and show you houses in your price range. When we find the right house and you are comfortable with your decision, a contract of sale will be prepared. This contract states the price and terms you are willing to offer for the house. In New Jersey all offers must be in writing. A check for 1% is usual and accompanies the offer to purchase. I will, in most cases, present the offer personally to the seller. When you and the seller reach an agreement and the contracts are fully signed, (any changes during negotiations must be initialed), the check is deposited to the selling Realtor’s trust account or one of the attorney’s accounts. If an agreement is not reached, I will immediately return the check to you.

Contingencies in the contract of sale can vary, but the common ones cover an inspection for wood boring insects, structural integrity, presence of radon, attorney approval of the contract and mortgage commitment. These contingencies have a time frame in which they must be accomplished. The mortgage contingency in the contract will state the dollar amount of the mortgage, the term and the interest rate for which you are applying. The words "prevailing rate" are customarily used to describe the interest rate. Application of a mortgage is made immediately after going to contract and approximately 30 - 45 days is given to obtain the mortgage commitment. The mortgage application fees range from $250 to $500.

The total earnest money in the contract is usually 10% of the purchase price. You will have given 1% with the offer to purchase. The balance is customarily due seven to ten days after the contract is in force. This money will be placed in the escrow account and the total deposit is held until closing of title.

When you have obtained the mortgage commitment, your attorney will begin to prepare for closing of title. A title search and application for title insurance will be made. The deed to the property will be written in your name and all paperwork necessary for settlement completed. If an early closing is planned and you are assured of qualifying for the mortgage your attorney may start this process before the actual commitment is received. You are required to have homeowner’s insurance for at least the amount of the mortgage. (Example: a 50 year old Westfield house selling for $250,000 will have a premium of approximately $550.)

Just prior to closing, I will accompany you on a "walk-through" for your final inspection of the property to verify that it is in the same condition as when you went to contract and that the plumbing, heating, electrical, air conditioning and appliance systems are in working order. The seller of the property will arrange for final utility readings. You will be responsible to contact the utilities to establish accounts in your name.

Prior to closing your attorney will itemize the anticipated expenses such as property tax apportionment, (average is two months, maximum is four months), fuel oil remaining in the tank, title insurance, (approximately $4 per each $1,000 of purchase price). Processing and recording of deed, ($50 to $95), adjustment for interest and points to bank, survey ($350 to $500), etc. The average attorney charges between $700 and $900 for their services.

You will attend the closing of title at your attorney’s office with the sellers in attendance, unless they have pre-executed their paperwork. You will officially take title to your new home at this time and are entitled to immediate possession.

This paper has been prepared as a general guide. I will, of course, personally assist you through all the steps in an orderly manner.