New Jersey process · buyer view

The New Jersey Home-Buying Process: Your Step-by-Step Checklist

This checklist walks a first-time New Jersey buyer through every step of buying a home, from getting pre-approved to picking up the keys.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-8 weeks

Pre-Offer

You get your money lined up, choose an agent, and start touring homes. This is the homework phase before you put anything in writing.

  1. Check your credit and pay down small balances

    You2-3 months before house hunting

    Pull your free credit reports at AnnualCreditReport.com and look for late payments, collections, or errors. Try to keep credit card balances under 30% of each card's limit, because a higher score gets you a lower mortgage rate.

    Cost: $0

  2. Save cash for your down payment and closing costs

    YouBefore you start touring

    Plan for a down payment (often 3-20% of the price) plus another 2-5% for closing costs like title insurance, lender fees, and recording charges. If you are buying a home priced at $1,000,000 or more, also budget for the New Jersey Mansion Tax, which is an extra 1% of the full purchase price paid by the buyer at closing.

    Cost: varies

  3. Get pre-approved for a mortgage

    LenderBefore you start touring

    Contact 2-3 lenders to compare rates, fees, and loan programs. A pre-approval letter shows sellers you are a serious buyer and tells you the price range you can actually afford.

    You'll need

    • W-2s (last 2 years)
    • Pay stubs (last 30 days)
    • Bank statements (last 2 months)
    • Photo ID
    • Tax returns (last 2 years)

    Cost: $0

  4. Sign a written buyer agency agreement with your agent

    Your agentBefore touring your first home

    In New Jersey, an agent who is part of an MLS must have a written buyer representation agreement signed before showing you any home in person or virtually. The agreement spells out who you are working with, how long it lasts, what services you get, and exactly how your agent gets paid.

    You'll need

    • Photo ID

    Cost: varies

  5. Review and sign the Consumer Information Statement

    Your agentAt first substantive contact with an agent

    The Consumer Information Statement is a state-required form that explains the different ways a New Jersey agent can work with you: seller's agent, buyer's agent, disclosed dual agent, or transaction broker. Your agent must give it to you at your first real conversation about specific homes or prices, before any deeper discussions begin.

    Cost: $0

  6. Tour homes and compare neighborhoods

    Your agentAfter pre-approval

    Go to open houses and private showings to learn what your money buys in different towns. Pay attention to commute times, schools, property taxes, and noise, because once you fall in love with a home it is hard to judge those things fairly.

    Cost: $0

  7. Check the flood zone and coastal rules before falling in love

    YouBefore making an offer

    Look up any home you are serious about on the FEMA Flood Map Service Center to see if it is in a flood zone, which can mean higher insurance costs. If the home is near the Jersey Shore, ask whether it sits in the Coastal Area Facility Review Act (CAFRA) zone, because that can limit additions, rebuilds, or demolition.

    Cost: $0

Phase 2 of 7 · typically 1-10 days

Offer

You write an offer, the seller responds, and you go back and forth until both sides agree. In New Jersey this usually happens on a Realtors standard form contract.

  1. Decide on price, deposit, and closing date with your agent

    Your agentRight before writing the offer

    Your agent will help you compare recent nearby sales to pick a competitive offer price. You will also choose the deposit amount, the closing date you want, and any contingencies, like financing or inspection, that let you walk away if something goes wrong.

    You'll need

    • Pre-approval letter

    Cost: $0

  2. Sign and submit your written offer

    Your agentOnce you find the right home

    In New Jersey, residential offers are almost always written on a Realtors standard form contract prepared by the agent. You sign it, your agent sends it to the listing side, and the seller can accept, reject, or counter.

    You'll need

    • Pre-approval letter
    • Photo ID

    Cost: $0

  3. Negotiate counteroffers and get a fully executed contract

    Your agentWithin a few days of your first offer

    The seller may counter on price, closing date, or what stays with the home. Keep going back and forth until both sides sign the same version, which is called a 'fully executed' contract. The clock for the next steps starts when you get that signed copy.

    Cost: $0

  4. Read the Megan's Law notice in your contract

    YouWhile reviewing the contract

    Every New Jersey residential contract of sale must include a notice telling you that information about the state's sex offender registry is available from the NJ State Police and your local police. If you want to check, you can look up registered offenders near the home on the State Police's online registry before you move forward.

    Cost: $0

Phase 3 of 7 · typically 3-5 business days

Under Contract & Attorney Review

You and the seller are now in contract, but in New Jersey the deal is not fully locked in until the special attorney review period ends. This is when most people hire a real estate attorney.

  1. Hire a New Jersey real estate attorney

    AttorneySame day you get the signed contract

    Pick a local attorney who handles home purchases and send them your signed contract right away. They will represent you through closing, review documents, and protect you during the short attorney review window.

    You'll need

    • Fully executed contract

    Cost: $1,000-2,500 typical

  2. Use the 3-business-day attorney review period

    AttorneyWithin 3 business days of receiving the signed contract

    In New Jersey, either side can cancel or change a Realtor-prepared contract within 3 business days after both parties get the signed copy. This rule comes from the state Supreme Court's New Jersey State Bar v. New Jersey Association of Realtor Boards decision, and the attorney review clause must appear in every standard residential contract. If your attorney does not send a cancellation or change letter in time, the contract becomes final as written.

    You'll need

    • Fully executed contract

    Cost: $0

  3. Deliver your earnest money deposit

    YouWithin a few days after attorney review ends

    After attorney review ends, you wire or send a check for your deposit, usually 1-5% of the price. In New Jersey, that money has to be held in a separate broker trust account or an attorney trust account and cannot be mixed with anyone's personal funds.

    You'll need

    • Wire instructions

    Cost: varies

  4. Review the seller's disclosures

    Seller's sideDuring or shortly after attorney review

    The seller should give you any disclosures the law or contract requires, such as the property condition disclosure and the New Jersey flood disclosure form created by the 2024 Flood Disclosure Law. Read them carefully and ask your attorney or agent about anything that surprises you.

    Cost: $0

  5. Review the lead-based paint disclosure for older homes

    Seller's sideBefore signing or during attorney review

    If the home was built before 1978, federal law requires the seller to give you a written lead-based paint disclosure and the EPA pamphlet 'Protect Your Family From Lead in Your Home.' You also get a 10-day window (unless you waive it) to test for lead paint at your own cost.

    You'll need

    • Lead-based paint disclosure form
    • EPA lead pamphlet

    Cost: $0

  6. Review new construction or condo disclosures (if they apply)

    Seller's sideBefore signing or during attorney review

    If you are buying a brand-new home, the seller must give you a written disclosure of known off-site conditions within one mile, like landfills or contaminated sites, under the New Residential Construction Off-Site Conditions Disclosure Act. If you are buying a condo, townhome, or other unit in a planned development, you should receive a Public Offering Statement under PREDFDA, which gives you a 7-day right to cancel after you receive it.

    Cost: $0

Phase 4 of 7 · typically 10-17 days

Inspection & Due Diligence

You hire pros to check the home for problems and use what they find to ask for repairs, credits, or a lower price. This is also when you finish researching the property.

  1. Hire a home inspector and attend the inspection

    InspectorWithin 10-14 days of going under contract

    Pick a licensed home inspector and try to be there in person. They will check the roof, foundation, plumbing, electrical, heating, and major systems and give you a written report you can use to negotiate.

    Cost: $400-800 typical

  2. Order radon and other environmental tests

    InspectorDuring the inspection period

    New Jersey has many areas with elevated radon, so most buyers add a radon test. Depending on the home, you may also want tests for well water quality, septic systems, oil tanks, mold, or termites.

    Cost: $150-600 typical

  3. Negotiate repairs, credits, or a price reduction

    AttorneyWithin a few days after the inspection

    After you get the inspection reports, your attorney sends the seller's attorney a letter asking for repairs, a credit at closing, or a price reduction. Pick your battles, because asking for everything can sour the deal.

    You'll need

    • Inspection report

    Cost: $0

  4. Confirm flood risk and get a homeowners insurance quote

    YouDuring the inspection period

    Compare what the seller's flood disclosure says with the FEMA flood map and ask your insurance agent for a quote. If the home is in a high-risk zone, your lender will require flood insurance, and the premium can change whether the home still fits your budget.

    You'll need

    • Property address

    Cost: $0

  5. Look up nearby hazards and off-site conditions

    YouDuring the inspection period

    New Jersey's Strawn v. Canuso case says sellers and listing agents must disclose known off-site problems, like nearby contamination, that a regular buyer could not easily find. You can also do your own homework by checking state environmental maps and town records for landfills, brownfields, or industrial sites near the home.

    Cost: $0

Phase 5 of 7 · typically 3-5 weeks

Loan & Appraisal

Your lender finishes underwriting your loan and orders an appraisal to confirm the home is worth what you agreed to pay. Stay responsive, because slow paperwork can delay closing.

  1. Lock your mortgage rate

    LenderAfter inspection issues are resolved

    Once you are under contract and the inspection looks good, ask your lender to lock your interest rate so it does not change before closing. Rate locks usually last 30-60 days, which should match your closing timeline.

    Cost: $0

  2. Send your lender every document they ask for, fast

    YouThroughout underwriting

    Underwriters will keep asking for updated pay stubs, bank statements, gift letters, and explanations. The faster you respond, the less likely you are to miss your closing date.

    You'll need

    • Updated pay stubs
    • Updated bank statements
    • Tax returns

    Cost: $0

  3. Let the appraiser into the home

    LenderWithin 1-2 weeks of going under contract

    Your lender will hire an appraiser to inspect the home and decide what it is worth based on recent sales nearby. If the appraisal comes in below the contract price, you may need to renegotiate, put more cash down, or use the appraisal contingency to back out.

    Cost: $400-700 typical

  4. Avoid big financial changes until after closing

    YouFrom application through closing

    Do not open new credit cards, buy a car, change jobs, or move large amounts of money between accounts while your loan is being underwritten. Any of these can blow up your approval at the last minute.

    Cost: $0

  5. Get your 'clear to close' from the lender

    Lender1-2 weeks before closing

    When underwriting is done, the lender issues a 'clear to close' meaning all conditions are met. Your attorney and the title company can then schedule the closing date with the seller.

    Cost: $0

Phase 6 of 7 · typically 1-2 weeks

Pre-Closing

Title, taxes, and cash-to-close all get finalized in the days right before closing. Take this phase seriously, because wiring mistakes here are the most common way buyers lose money.

  1. Let the title company run a title search and issue title insurance

    Escrow / title2-4 weeks before closing

    The title company checks public records for any liens, unpaid taxes, or claims on the home. They then issue an owner's and lender's title insurance policy that protects you and the lender if a hidden problem shows up later.

    Cost: varies

  2. Review your Closing Disclosure carefully

    LenderAt least 3 business days before closing

    Your lender must send you a Closing Disclosure at least 3 business days before closing, showing every loan term, fee, and dollar you need to bring. Compare it line-by-line to your Loan Estimate and ask your lender or attorney about any number that surprises you.

    You'll need

    • Loan Estimate

    Cost: $0

  3. Budget for the 1% Mansion Tax if the price is $1 million or more

    YouBefore final cash-to-close is set

    New Jersey charges a Mansion Tax of 1% of the full purchase price on residential transfers where the price is $1,000,000 or more, and the buyer pays it at closing. The tax applies to the whole price, not just the amount over $1 million, so a $1,200,000 home owes $12,000, not $2,000. Make sure your Closing Disclosure shows this if it applies.

    Cost: varies

  4. Handle FIRPTA or GIT/REP if the seller is a non-resident

    Escrow / titleBefore closing

    If the seller does not live in New Jersey, the title company will likely withhold New Jersey income tax under the GIT/REP rules, generally the greater of 2% of the price or 8.97% of the estimated gain. If the seller is a foreign person under federal FIRPTA rules, the buyer's side normally must withhold 15% of the purchase price and send it to the IRS. Your attorney and the title company handle the paperwork, but as the buyer you can be on the hook if it is skipped.

    You'll need

    • Seller's residency or FIRPTA certification

    Cost: $0

  5. Do a final walkthrough of the home

    Your agent24-48 hours before closing

    In the 24-48 hours before closing, walk through the home with your agent to make sure it is in the agreed condition and that any negotiated repairs are done. Test the major appliances, faucets, and outlets, and confirm the seller has not left junk or damage behind.

    You'll need

    • Inspection follow-up list

    Cost: $0

  6. Wire your cash-to-close very carefully

    You1-2 days before closing

    Get wire instructions only from your attorney or title company, and confirm them by calling a known phone number, not one in the email. Wire fraud in real estate is common, and once the money is gone it is almost impossible to get back.

    You'll need

    • Verified wire instructions

    Cost: $0

Phase 7 of 7 · typically 1 day

Closing

You sign the closing documents, pay the rest of what you owe, and the deed is recorded in your name. After this, the home is officially yours.

  1. Bring photo ID and any final funds to closing

    YouOn the closing date

    Show up with a valid government-issued photo ID and any cashier's check or wire confirmation your attorney or title company asks for. Plan to set aside 1-2 hours for the actual signing.

    You'll need

    • Photo ID
    • Wire confirmation or cashier's check

    Cost: $0

  2. Sign the mortgage and closing documents

    AttorneyAt the closing table

    You will sign a stack of documents, including your mortgage note, deed of trust or mortgage, and a final settlement statement. Your attorney sits with you to explain each form and flag anything that does not match what you agreed to.

    You'll need

    • Photo ID
    • Closing Disclosure

    Cost: $0

  3. Pay the buyer-side closing costs at the table

    Escrow / titleAt closing

    Your final cash-to-close covers your down payment, prepaid taxes and insurance, lender fees, title insurance, recording fees, and the Mansion Tax if the price is $1,000,000 or more. The title company will collect those funds and send each payment to the right place after closing.

    You'll need

    • Closing Disclosure

    Cost: varies

  4. Get the keys and take possession

    Seller's sideAt or right after closing

    Once the deed is signed and funds are released, the seller's side hands over keys, garage door openers, and any alarm codes. Change the locks soon after move-in so old keys floating around do not become your problem.

    Cost: $0

  5. Save your full closing package for taxes and future sale

    YouAfter closing

    Keep a digital and paper copy of everything: the deed, mortgage note, Closing Disclosure, title insurance policy, and any disclosures. You will need these for tax filings, future refinancing, and when you eventually sell the home.

    You'll need

    • Closing package

    Cost: $0

Sources

  1. [1] NAR Settlement — Practice Changes FAQ
  2. [2] NJ Real Estate Commission — N.J.A.C. 11:5-6.2
  3. [3] NAR Settlement — Compensation Practice Changes
  4. [4] NJ Division of Taxation — GIT/REP Withholding on Real Property Sales
  5. [5] IRS — FIRPTA Withholding on Dispositions of US Real Property
  6. [6] NJ Division of Taxation — Realty Transfer Fee and Mansion Tax
  7. [7] N.J.S.A. 46:15-7.2 — Mansion Tax Statutory Text
  8. [8] NJ DEP — Coastal Area Facility Review Act (CAFRA)
  9. [9] N.J.S.A. 13:19-1 — CAFRA Statutory Text
  10. [10] IRS — FIRPTA Withholding on Dispositions of US Real Property
  11. [11] NJ Division of Taxation — GIT/REP and FIRPTA Coordination
  12. [12] N.J.S.A. 46:3C-1 — New Residential Construction Off-Site Conditions Disclosure Act
  13. [13] P.L. 2003, c. 54 — Off-Site Conditions Disclosure Act
  14. [14] N.J.S.A. 45:22A-21 — PREDFDA
  15. [15] NJ DCA — Planned Real Estate Development Registration
  16. [16] NJ State Bar Ass'n v. NJ Ass'n of Realtor Boards, 93 N.J. 470 (1983)
  17. [17] NJ Realtors Standard Contract Form NJ-1027
  18. [18] NJ Consumer Information Statement — DOBI Official Form
  19. [19] P.L. 2023, c. 93 — NJ Flood Disclosure Law
  20. [20] FEMA Flood Map Service Center
  21. [21] EPA — Lead-Based Paint Disclosure for Real Estate Transactions
  22. [22] N.J.S.A. 2C:7-8 — Megan's Law — Community Notification
  23. [23] NJ State Police Sex Offender Internet Registry
  24. [24] Strawn v. Canuso, 140 N.J. 43 (1995)
  25. [25] NJ Real Estate Commission — Trust Account Rules

Last updated May 15, 2026