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: Stop for Broken Light Ends with DWI for Newton Man

February 17, 2018

SPARTA, NJ – A Newton man caught the attention of Sparta Cpl Rubino when he drove passed him on West Shore Trail with a broken license plate light.  Alexis Obolensky was stopped in his gold Subaru on February 15 around 7:45 p.m., police report.

When the officer was stopping the 28-year-old driver he saw him flick a cigarette out the window.  As Rubino spoke with him he smelled ...

Sparta Police Nab Two on Outstanding Warrants

SPARTA,NJ – Several people with active warrants were picked up by Sparta Police this week. On February 12 around noon, Sparta Police Officer Christopher Favaro stopped Newark resident Alex Nunes-Ramalho, 23, for broken break lights on his gold Chevy Impala. 

 Nunes-Ramalho told Favaro that he did not have his wallet with him.  Instead, the driver showed the officer a ...

Sparta Police: Marijuana Card is Not a Free Pass for NY Man

SPARTA, NJ – A man speeding on Route 15 faces drug charges despite having a medical marijuana card.  Muhammad Khan, 26, of Valley Stream, New York was stopped by Police Officer Erick Finley driving his red Lexus SUV 75 mph in a 55 mph zone, police report.

When the officer spoke with the driver and passenger Abubaker Masood, 29 of West Islip, New York, the officer smelled raw ...

Upcoming Events

Carousel_image_2f5911ae032b7193cdd2_girlscout_logo

Tue, February 20, 6:30 PM

Sparta United Methodist Church, Sparta

Girl Scout STEAM Program

Arts & Entertainment Education

Sat, February 24, 7:00 PM

The Prudential Center, Newark

Sparta Education Foundation Night Out with the NJ ...

Giving Back Sports

Carousel_image_2f5911ae032b7193cdd2_girlscout_logo

Tue, February 27, 6:30 PM

Sparta United Methodist Church, Sparta

Girl Scout STEAM Program

Arts & Entertainment Education

Carousel_image_54f5549c693ec0512950_thedrowsychaperone_flyer

Fri, March 2, 7:00 PM

Wallkill Valley Regional High School, Hamburg

The Drowsy Chaperone

Arts & Entertainment

Carousel_image_563fe88c2c7424a0dce9_newton_rotary

Sat, March 3, 7:00 AM

First United Methodist Church, Newton

Newton Rotary Pancake Breakfast

Food & Drink

One Injured in Two-Family House Fire in Newton

February 6, 2018

NEWTON, NJ—One man was injured, while three others escaped unharmed when a two-family two story apartment house caught fire on Saturday.  On January 27 at around 6:26 a.m. Newton Police received a 9-1-1 call from a passerby reporting a house on fire. Patrols immediately responded to the area and found a structure fire at 75 Trinity Street police report..

According to Police, ...

Paterson's Poet Laureate

February 13, 2018

PATERSON, NJ- The City of Paterson has given birth to famous athletes, business leaders, actors, and now, a poet laureate.

Born and raised in Paterson, Talena Lachelle Queen told TAPinto Paterson that she has been writing since she was five-years old, and, as she grew older, realized that when it came to pursuing studies and a career in writing, she “didn’t have a choice.” ...

How to Talk with Kids About the Florida Shooting

February 15, 2018

The tragedy of the Florida school shooting is devastating, leaving 17 killed and 15 injured. Our children can easily identify with what occurred yesterday. It will be the topic of conversation today in schools everywhere. School administrators are doing all they can to provide support and guidance. The shootings affect children, teachers, and school personnel. The school shooting ...

Does Marriage or Mortgage Come First?

According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2017 at 57% of all buyers. Team Nest Builder knows it's no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more ...

Very Hot Tea Increases Cancer Risk

Researchers in China studying the consumption of “burning” hot tea, alcohol, and smoking habits of greater than 450,000 people ages 30 –79 for more than nine years found a five time greater risk of esophageal cancer in those who engaged in all three of the behaviors and a two time greater risk in those who either smoked or drank alcohol and consumed burning hot tea as compared ...

AtlantiCast

AtlantiCast Medical Minute: Atlantic Orthopedic Institute’s Scoliosis and Spinal Deformity Center

On this episode of the AtlantiCast Medical Minute, we’ll take you inside the Atlantic Orthopedic Institute’s Scoliosis and Spinal Deformity Center, with the center’s director, Jason Lowenstein, MD.

Video Link: https://www.youtube.com/watch?v=1M7euCp86-c

AtlantiCast Episode 011

Breaking Atlantic Health System news on this week’s AtlantiCast! Plus, find out why Morristown Medical Center is one of the best hospitals in the nation when it comes to recovering from joint surgery, see the newest center for fighting brain cancer and an Atlantic Health System red-carpet premiere!

 

Sussex County Board of Chosen Freeholders February 14 2018 Meeting Video

NEWTON, NJ - Sussex County Board of Chosen Freeholders February 14 2018 Meeting Video 

 

Coalition for Health and Safe Communities to Host Workshop for Community Pharmacists

February 16, 2018

NEWTON, NJ—A Pharmacist Workshop will be hosted by the Coalition for Healthy and Safe Communities, a program of Center for Prevention on Sunday, February 25.

The event will take place from 6 to 8 p.m. with registration starting at 5:30 p.m. It will be held at the Center for Prevention on Newton Sparta Road. 

This workshop will provide pharmacists with a Narcan training along with ...