Buyer's Guide

Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.

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Why Do You Want To Buy?

Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of your reasons for buying will help you choose the right property.

Has Your Income Grown?

Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment.

Before you start shopping for your property, it is a good idea to make some preparations.

Build Your Green File:

A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:

  • Financial statements
  • Bank accounts
  • Investments
  • Credit cards
  • Auto loans
  • Recent pay stubs
  • Tax returns for two years
  • Copies of leases for investment properties
  • 401K statements, life insurance, stocks, bonds, and mutual account information.

Check Your Credit Rating:

Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution so that we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, commercial and investment real estate fields.

Be Careful With Your Finances:

Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.

Buying a property is one the biggest financial decisions anyone can make, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner when undertaking such a large purchase. Do you need to sell your current home in order to purchase a new one? Michelle Mumoli and her team can guide you through this process, and also provide you with access to property listings before they hit the market.

Here are some factors to consider when choosing your real estate professional:

  • Look for a full-time agent – one who has experience completing transactions similar to yours and listens to your list of needs/wants. As a designated Realtor©, Michelle Mumoli, like all professionals in their respective fields, undergoes continuing education to stay up to date on New Jersey real estate licensing requirements. Michelle Mumoli is also a member of three real estate boards: New Jersey Multiple Listing Service, Garden State Multiple Listing Service and Hudson County Multiple Listing Service. She also is a New Jersey native, and her geographic knowledge expands from Hudson County thru Essex County, to the western edge of Morris County and Northern regions of Bergen County.
  • Interview a few agents: Are they familiar with the area in which you are interested? An agent should have exceptional knowledge of the area you are looking to buy in and may introduce you to areas that you had not considered as well.
  • Buyer agents are knowledgeable in how the home purchase works and will be able to provide you details of the process from start to finish. They will also recommend their preferred lenders, attorneys, home inspectors and anything and everything in between. Michelle Mumoli knows the rhythm of a real estate transaction more than anyone, as an investor herself, but also as respected member of the National Association of Realtors©
  • Ask about their credentials and education: A good agent will continually strive to improve and gain knowledge of the latest real estate trends and hold the highest designations in their respective fields of expertise.
  • Does the agent return your calls promptly? Time is money when attempting to buy a property.
  • Choose an agent who listens attentively to your needs and concerns. Pick an agent, with whom you feel comfortable. Real estate agents have a fiduciary responsibility to you, as their client. Buyer agents do not get paid a commission from you, so they are basically working for months without payment until all your needs are met and the deal closes. Your buying agent should work tirelessly for you!Michelle Mumoli and her team of agents have a 99% referral based business. This means their reputation far exceeds clients’ expectations.

Once those preparations are out of the way, it is time to find the right property for you.

Take a Drive:

Get to know the neighborhoods, complexes, or subdivisions, which interest you. Drive around and get a feel for what it would be like to own a property in the area. After the initial conversation with your real estate agent, you should have an idea of all available areas where your purchasing power can work for you.

Narrow Your Search:

Your real estate agent will send you properties that fit your wants and needs, as you discussed during your initial conversation. Select a few properties that interest you the most and your real estate agent will make the appointments to access the properties.

Time to Buy:

Once you have picked out the property you want to purchase, your real estate agent can help you make an offer that the seller will accept.  A great real estate agent has a rapport with a strong network of seller agents and through that rapport, they can  help you draft your offer in a way that gives you the advantage over another offer.

Attorney Review, Initial Deposit & Inspections:

Attorney review begins once the contract is signed by both parties and the attorneys begin to review it. This process can take up to a week, as this is when your attorney will be speaking with you directly and rewriting the contract to fit your needs and specify the purchase of the particular property you are buying.

Inspection & Initial Deposit:

Once attorney review concludes buyer will send in their initial deposit to sit in escrow until closing, start their loan process and then schedule their inspection. The property should be inspected by a licensed home inspector within the time frame that was agreed upon in the contract. Your real estate agent will be providing trusted inspector recommendations, they will inspect all aspects of the property (roof, mechanicals, structural, insect etc). A buyer of a commercial property may also have a complete environmental audit performed and/or soil test.

Depending on the outcome of these inspections, buyer may:

  1. Request the seller provide more information on important items seen in inspection report provided by licensed inspector as well as ask for repairs
  2. Request a reasonable credit for the above mentioned repairs that they may take on themselves.

Repairs and credits are not a time to renegotiate the selling price. A credit is for the amount estimated it would cost to fix the inspection items and it is less money the buyer would bring to the closing table, not a reduction of the purchase price. Real estate agents can help to better understand some issues through their relationships with the seller agents and your attorney helps as well by obtaining all information on items. A professional real estate agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we guarantee our expertise and total commitment to every customer, no matter what their situation is.

Appraisal:

If a buyer is obtaining a mortgage. The property will  be appraised by a licensed appraiser to determine the value for the lending institution via third party. This is done so that the lending institution can confirm their investment in your property is accurate.

Title Agent:

A title company will be selected by your attorney. This company examines and ensures clear title to real estate. After researching the complete recorded history of your property, they will certify that

  1. Your title/deed is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing; and
  2. All new encumbrances are duly included in the title.
  3. Provide insurance for any future issues that may arise.

A few days before closing, the title company, your lender and your attorney will ensure you receive a closing disclosure. This CD itemizes exact costs with the entire purchasing process for both you and the seller. Your attorney will advise the amount of the cashiers check your should bring with you as well as ask you to bring 2 forms of ID per party signing the title documents.

The day of or day prior to closing, your real estate agent will schedule a final walk through of the property to ensure that the property was left in the adequate purchasing condition.

At the closing you will be accompanied by your real estate agent, your attorney and the title agent (in most cases) who will guide you through each page of the documents you will be signing. Closings typically take about an hour.

After you sign everything and your attorney gives you keys you are proud homeowners. This is the start of something that will bring you joy and create wealth for you in the future.

WELCOME HOME.