13 New Jersey Home Buying Terms You Need To Learn

19132ff394ef94e6056b_lingo_13_terms_you_need_to_learn_teacher_chalkboard-1468406_1920.jpg
Master these 13 NJ home buying terms--pop quiz possible!
19132ff394ef94e6056b_lingo_13_terms_you_need_to_learn_teacher_chalkboard-1468406_1920.jpg

The world of real estate involves a language unto itself.  Consequently, it’s important to understand the common terminology as it affects the outcome of your New Jersey home buying process.  To start you on your New Jersey home buying path with confidence, we’ve compiled a list of some of the most commonly used real estate terms:

Annual Percentage Rate (APR) – A broader measure of your cost for borrowing money. The APR includes the interest rate, points, broker fees and certain other credit charges a borrower must pay. Because these costs are rolled in, the APR is usually higher than your interest rate.

Appraisal – A professional analysis used to estimate the value of the property. This includes examples of sales of similar New Jersey properties. This necessary step validates the home’s worth to you and your lender, thereby assisting in securing your financing.

Sign Up for E-News

Closing Costs – Costs needed to complete the real estate transaction. These costs exist in addition to the price of the home and are paid at closing. They include points, taxes, title insurance, financing costs, items that must be prepaid or escrowed, and other costs. Ask your lender for a complete list of closing cost items.

Credit Score – A number ranging from 350-800, based on an analysis of your credit history. Your credit score plays a significant role when securing a mortgage as it helps lenders determine the likelihood you’ll repay future debts. The higher your score, the better.  Many New Jersey home buyers believe they need at least a 780 score to qualify when, in actuality, over 55% of approved loans had a score below 750.

Discount Points – A point equals 1% of your loan (1 point on a $200,000 loan = $2,000). If you pay points, you buy down your mortgage interest rate. It’s essentially an upfront interest payment to lock in a lower rate for your mortgage.

Down Payment – A portion of the cost of your New Jersey home that you pay upfront to secure the purchase of the property, typically 3 to 20% of the purchase price of the home. VA loans for Veterans provides zero-down programs and USDA loans exist for rural areas. Eighty percent of first-time buyers put less than 20% down last month.

Escrow – The holding of money or documents by a neutral third party before closing. Additionally, it may be an account held by the lender (or servicer) into which a New Jersey homeowner pays money for taxes and insurance.

Fixed-Rate Mortgages – A mortgage with an interest rate that stays constant for the entire term of the loan, typically 15 or 30 years.

Home Inspection – A professional inspection of a home to determine the condition of the property. Evaluations typically cover plumbing, heating and cooling systems, roof, wiring, foundation and pest infestation. Your inspector, agent or attorney might also recommend an Open Pit Septic Inspection (for homes without public sewers), a Level 2 Chimney Inspection, a mold test, and/or an Underground Tank Sweep (if evidence shows the heating fuel source could have once been from an underground fuel storage tank). For home buyer ease, Team Nest Builder provides a list of licensed inspectors.  (New Jersey requires licensing of all inspectors.)

Mortgage Rate – The interest rate paid to borrow money to purchase your New Jersey home. The lower the rate, the better. Interest rates for a 30-year fixed rate mortgage hovered between 4 and 4.25% for most of 2017 thus far.

Pre-Approval Letter – A letter from a mortgage lender indicating that you qualify for a mortgage of a specific amount. It also shows a New Jersey home seller that you're a serious buyer. Having a pre-approval letter in hand while shopping for homes helps you move faster, with greater confidence, in competitive markets.

Primary Mortgage Insurance (PMI) – If you make a down payment lower than 20% on your conventional loan, your lender will require PMI, typically at a rate of .51%. PMI serves as an added insurance policy that protects the lender if you’re unable to pay your mortgage and can be canceled from your payment once you reach 20% equity in your New Jersey home.

Real Estate Professional – An individual who provides services in buying and selling homes. Expert New Jersey real estate professionals assist with confusing paperwork, help you find your New Jersey dream home, negotiate any of the details that arise, and ensure you’re educated regarding the housing market. Many real estate professionals refer you to local lenders or mortgage brokers along with other specialists you’ll need throughout the home-buying process.

Feel smarter? You should! Just remember, if ever you’re confused during your New Jersey home buying process, just pick up the phone and call Team Nest Builder.  We’re here to help you every step of the way!

Team Nest Builder is a full-service home finding and home selling team servicing the northern New Jersey Skylands Region. Our state licensed sales associates have well over 50 years combined experience and millions of dollars in closed business to draw on when servicing your personal needs.

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Sparta

Sparta Police: No Seatbelt Stop Leads to Drug Arrest

July 21, 2018

SPARTA, NJ –A Newark man is facing drug charges after a traffic stop on Route 15 north.  On July 18 around 11:15 a.m. Cpl. Marc Rubino stopped a white Acura because the driver Ishmel Graham was not wearing his seatbelt according to police.

When the officer spoke with the 21-year-old Rubino smelled marijuana.  Graham told Rubino he had pot in the car police report.

When ...

Sparta Police: Wanted Man Gets Additional Charges

SPARTA, NJ -  A man from Hackettstown with an active warrant faces additional charges when officers stopped him because the registered owner of the car had a suspended license.  On July 2 around 2 a.m. Police Officer Ericks Finley stopped a car registered to Shanicqui Nelson on Route 15 police said.

The driver Shaun Reid, 36 was also found to have a suspended license and an ...

Sparta Police: Road Rage and Racing on Route 15 End in Arrest

SPARTA, NJ – A man from Plainfield was stopped for racing on Route 15, going 93 MPH in a 55 MPH zone.  Sparta Police Officer Erick Finley was able to stop one of  two cars racing on July 6 around 11:45 p.m. police said.

Driving a four door Chevy, Santos Vides-Guardado, 21, told Finley that he and the other driver had gotten into an argument that led to the two men racing each ...

Why Did Freeholders Reject Dr. Howard Burrell's Nomination to SCCC Trustee?

July 21, 2018

Editor:

Outgoing Freeholder Director Jonathan Rose announced on Facebook that Howard Burrell was deemed “not acceptable” by the Sussex County freeholder board to serve as trustee of Sussex County Community College. 

Why did the freeholders decide that Dr. Burrell is “not acceptable?" After all, the freeholders’ own search committee nominated Dr. Burrell to ...

No Dog Beach on Lake Hopatcong?

Hello Editor, 
 I have spent considerable time trying to find somewhere on Lake Hopatcong to bring my dog for a swim.
What I have found is ridiculous - this lake has approximately 28 miles of shoreline and I found NO PLACE am allowed to bring him.  Am hoping you can make the public aware and maybe someone will know more than me and inform where dogs are allowed?
Many thanks for ...

Upcoming Events

Carousel_image_50e2ca549a0aca1616bd_nj_blood_services

Sat, July 21, 7:45 AM

Saint Kateri Parish, Sparta

Sussex County Blood Drive

Health & Wellness

Carousel_image_499d1dd211c2bd6b0cb1_img_6497

Sat, July 21, 8:00 AM

Newton Moose Lodge, Fredon

Newton Moose Lodge Sunday Breakfasts

Food & Drink

Carousel_image_6f4ecc7e007a7b295623_farmers_market

Sat, July 21, 9:00 AM

Sparta Health and Wellness parking lot, Sparta

Sparta Farmers Market

Carousel_image_bdb5745746764dec42d1_sparta_historical_society

Sun, July 22, 1:00 PM

Van Kirk Homestead Museum, Sparta

Sussex County Views: The Art of Toni Chaplin

Arts & Entertainment

Carousel_image_42776b9cbb4ed47ca5de_paintbrush-pallet-

Mon, July 23, 10:00 AM

Sparta Public Library, Sparta

Watercolor Workshop

Arts & Entertainment

Tue, July 24, 7:00 PM

Kinnelon Public Library, Kinnelon

Northern NJ Libertarian Party Monthly Meeting

Government

Carousel_image_5a2a62fbc9dcb34622ce_img_9102

Tue, July 24, 7:30 PM

Town Hall, Sparta

Sparta Township Council Meeting

Government

Carousel_image_43e01e4e18a7a89ca0c9_paintbrush-pallet-

Fri, July 27, 10:00 AM

Sparta Public Library, Sparta

Watercolor Workshop

Arts & Entertainment

Carousel_image_499d1dd211c2bd6b0cb1_img_6497

Sat, July 28, 8:00 AM

Newton Moose Lodge, Fredon

Newton Moose Lodge Sunday Breakfasts

Food & Drink

Carousel_image_6f4ecc7e007a7b295623_farmers_market

Sat, July 28, 9:00 AM

Sparta Health and Wellness parking lot, Sparta

Sparta Farmers Market

Newton High School FFA Students Dominate at State Convention

July 11, 2018

LONG BRANCH, NJ - The Newton FFA Chapter won several of their events at the 89th New Jersey State FFA Convention in May at Monmouth University. The students brought home several awards competing against the best in the state.

Freshman Kirk Avondoglio took first place in the state FFA Creed Public Speaking competition.  The event requires participants to recite the creed in front of a ...

US Junior Amateur: Chinn Earns Medalist and Top-seed honors, Misses Rain Delay, after Second Day of Stroke Play

July 18, 2018

Tuesday’s Second Round Scores, playoff participants (8 for 3 spots)

Wednesday’s Round of 64 matchups

SPRINGFIELD, NJ - Kelly Chinn of Great Falls, Va., continued his stellar play Tuesday morning and missed an afternoon four plus hour rain delay on arguably Baltusrol Golf Club’s toughest layout, the Lower Course.

After shooting a five under 66 on the Upper Course Monday, ...

What You Need to Know About the Mortgage Process

Highlights:


Many buyers are purchasing a home with a down payment as little as 3%.


You may already qualify for a loan, even if you don’t have perfect credit.


Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.  This means call Team Nest Builder’s Lynn Garafola at 973-222-3777 ...

You DO NOT Need 20% Down to Buy Your Home NOW!

The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what’s required to qualify for a home mortgage loan in today’s housing market. The results of the survey show the main reason non-homeowners do not own their own homes is because they believe that they cannot afford them.

This brings us to ...

Get Rid of Your E-Waste This Saturday in Sussex County

Team Nest Builder knows it’s easy for e-waste---tv sets, printers, laptops, etc.--to pile up. Here’s your opportunity to rid yourself of it in Sussex County! It’s the Sussex County Municipal Utilities Authority E-Waste Collection Event! The scoop:

DATE:

Saturday, July 21st

TIME:

7 am - 2 pm

LIMIT:

Up to 5 Units per vehicle at no charge.  Scale charges for ...

4 Top Tips for Kitchen Remodels

Getting ready to remodel your New Jersey home's kitchen? Team Nest Builder shares these top 4 tips for maintaining your sanity (and budget)!

Expect the Unexpected

Even the best-laid plans go awry during a kitchen remodel--be prepared!  Add a 10% cushion to your finanical plan for problems that may arise. In case something happens, this could save your time and budget.

Make A ...

Get Out and Garden During FREE Open Gates Weekend

Team Nest Builder wants you to discover the beauty and diversity of Morris County’s Community Gardens through the people, plants, and planting techniques that make gardens thrive. It's Morris County Community Garden FREE Open Gates Weekend!

Tour the many gardens, discover how to start one in your town, and learn more about growing your own food. Enjoy food tastings and demonstrations ...

Homes More Affordable Today than 1985-2000

Concerned that your family will no longer be able to afford the most precious piece of the American Dream – your own home? Let Team Nest Builder assuage your fears...

It’s not just a home’s price that determines its affordability--it’s also the monthly cost determined by the price and the interest rate on the mortgage used to purchase it.

Today, mortgage interest ...

Be a Triathlon Volunteer!

Summertime is here and upon us Sparta residents, bringing a variety of exciting events to our area. Well, Pass It Along is BACK with the 9th Annual Triathlon at Lake Mohawk Country Club, located in Sparta, on Saturday, July 28, 2018!

This athletic event draws in several hundred people, both participants and spectators, to Lake Mohawk. Volunteers are needed to assist with the event in ...

AtlantiCast

AtlantiCast: Episode 18

On this week’s AtlantiCast, you’ll find out how accessing care at Atlantic Health System is now easier, more affordable and closer to home than ever, learn which item from the produce aisle could be the newest weapon against cancer, see what Atlantic Health System, the New York Times and Instagram all have in common and much more.

 

 

The Sussex County Freeholders July 11 meeting video

NEWTON, NJ - The Sussex County Freeholders July 11 meeting video

 

Fight Summer Slide with United Way’s Free Literacy Calendar

July 21, 2018

MORRISTOWN, N.J. – Studies indicate that students lose the knowledge equivalent of one month of instruction per year due to summer learning loss. United Way of Northern New Jersey Success By 6 is helping parents combat this summer slide with a free calendar that promotes literacy. Featuring bright children’s artwork, the calendar offers daily ideas tied to reading, ...