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Agent Spotlight . . . Chanda Webb
No car? No problem. Chanda Webb, who joined CENTURY 21 Cedarcrest Realty in December 2015, was not going to let the lack of her own car stand in her way of finding success as a real estate agent.
Chanda was working at Essex Community College as an advisor to students transferring into four-year programs, in part creating events that connected students to four-year colleges. Her knack for making matches and connecting people has served her well in real estate.
With her daughter graduated from high school and taking a year of study abroad, Chanda felt it was a good time to explore other careers and income streams, and took the real estate course. She interviewed at Cedarcrest Realty and explained she was without a car at the time. “John Sass, Susan Mazzetta and Dennis DiSabato believed in my potential and gave me a chance; they’re all so down to earth and really care. They made a place for me and I worked on building my leads and doing my training in the Caldwell office, which I got to by bus.” Since Chanda was still working at the college full-time (she recently left her position in September), she used her vacation and personal days for time off to attend agency meetings and training sessions. Thanks to the real estate technology employed by the CENTURY 21 system, she was able to work remotely as well.
She also got busy by walking her neighborhood and knocking on doors. “Within four months, I had my first listing, just by walking through my community,” she said. “Soon after, I got two more listings—even though it took another year before I got a car.” She said that friends, homeowners from her listings, and her customers often drove with her to showings; other times, she took public transportation from her Bloomfield home.
She also discovered the power of working a database of contacts.
“I knew many people at the college where I was working, people who cared about and believed in me. I reached out to these connections to ask if they knew anyone looking to buy or sell a home; I got referrals that way and made referrals to other agents as well. Being a connector by profession was helpful, as I was able to get people to help me out and vice versa.”
As for why she chose real estate, Chanda said, “If you’re a go-getter, real estate is for you. If you want to connect people and help them understand about buying or selling a home, this is the perfect career. I find it so empowering and I’m so glad I was able to do this as a single parent and still be there for my child.”
Her daughter, now age 27, got married last year in England. Chanda is grateful that her real estate income enabled her to cover some wedding expenses and join her daughter overseas with family and friends from the U.S. “It felt so good to help my daughter, and know that it was directly from my real estate transactions,” said Chanda.
She cites the trainings at CENTURY 21 Cedarcrest as factors in her success as well as the many online tools for helping her market listings and build a book of leads. She’s taken full advantage of the technology to create polished, professional brochures and customer guides, find and develop quality leads, and stay in touch with connections about homes on the market with email newsletters. “C21 Online is excellent and all agents should know about and use this great marketing tool,” she said.
Chanda is now designated as a seller representative specialist and hopes to one day teach real estate courses. She is working on the required designations to qualify for that. And, she has a car. Good thing, since she said that even through the pandemic, she was still getting referrals, talking to prospects, and began showing houses again in the early summer. Now a full-time real estate agent, she is working hard with our sales manager to execute and meet her sales goals. We are very proud of how far she’s come!
First-time Home Buyer? Don’t Get Hung Up by That 20% Down Payment
The New York metro real estate market has seen big shifts since the COVID-19 pandemic hit the area, with many city dwellers seeking out the suburbs to get away from crowded urban areas. They now want open space and great quality of life at a better cost of living when compared to NYC.
Another shift is the population making the move: in New Jersey, there are 1.8 million millennials (between ages 24 and 39) who make up 72% of today’s housing demand. The average age of these home buyers is 32.
This is also a group that’s paying off student loans, have been paying high rental rates, perhaps have started a family or paid for a wedding . . . and therefore, they don’t have the 20% down payment saved up. With prevailing home prices in northern New Jersey, that figure could be as high as $65,000 (or more) depending on type and location of the home. According to mortgage industry executive and videocaster Barry Habib, 74% of millennials are ready to purchase a home within 12 months but 88% say they have significantly less than 20% of the sale price saved up for down payment. In fact, 14% state they have nothing saved up.
What’s a young first-time home buyer to do?
FHA-backed mortgages for first-time buyers
If you’re a millennial buying your first home, don’t despair—this is not your father’s real estate market anymore and that includes the types of home loans available. Has your real estate agent mentioned FHA loans? These federally guaranteed mortgages enable you to put down far less on a home. In fact, you can have as low as 3.5% of the purchase price to put down, and less-than-perfect credit to qualify for an FHA loan (the minimum credit score is 580 to qualify, unless you are putting down at least 10%). As with all mortgages, the lending institution will make the determination regarding loan qualification.
You’ll pay higher costs on the transaction, but these loans are the leg up many young buyers need to realize the dream of home ownership.
What is the FHA
FHA stands for the Federal Housing Administration, an entity of the Department of Housing and Urban Development. It provides mortgage insurance on loans made by FHA-approved lenders on single family and multi-family homes in the U.S. FHA-backed mortgages are also available to certain borrowers who have filed bankruptcy or foreclosed on a previous property.
Work with a real estate brokerage that shows you the ropes
At CENTURY 21 Cedarcrest Realty, we work with many first-time home buyers at all income levels and with a variety of down payment savings. We understand what it takes—beyond showing homes in certain towns or within certain budgets—to get a real estate transaction from start to finish with as few hiccups as possible. One of the biggest roadblocks is qualifying for a mortgage, so we provide advice about mortgage options—including FHA loans; we also stress the importance of getting pre-approved for a mortgage in the tight market we operate in, which you can read about in this prior blog post. Contact us to get your home buying process started in Caldwell at (973) 228-1050 or Little Falls at (973) 364-1111.
Spotlight on . . . Omar Ibrahim
At CENTURY 21 Cedarcrest Realty, we’re thrilled to have the next generation of real estate pros join our agency. The newest addition to our team is a true Gen Zer—19-year-old college student, Omar Ibrahim.
Omar, who lives in Clifton, is a sophomore at Rutgers University, studying industrial engineering. He attended real estate school last December, got his license in January, and joined Cedarcrest Realty in early summer. Why real estate?
“I’d always been interested in learning more about real estate with an eye towards future investing, and had been reading books and watching videos about it; I’d been thinking that becoming a real estate agent would be a great steppingstone to becoming a real estate investor,” explained Omar. “I became friendly with a former Cedarcrest Realty agent in town, who told me a lot about the real estate field, which propelled me to get my license. He spoke highly of the Cedarcrest office so when it was time to join a brokerage, that was the first place I went.”
Omar is grateful for the coaching he’s getting from Dennis DiSabato, sales manager in our Caldwell office. “I’m learning a lot here on the job that wasn’t covered in real estate school. Dennis is very up-to-date with what’s going on in our markets and has shared great techniques to getting transactions done smoothly; he’s been so great to work with.”
With college classes being held virtually right now, Omar says that although he’s a full-time student, he has plenty of time to work the CENTURY 21 leads system and MLS listings to help people searching for a new home. He has several deals in the pipeline already, representing both buyers and sellers in Essex and Passaic counties. He says strong time management skills are key to juggling school and work and so far, so good.
Broker owner John Sass notes that while Omar has duly impressed all of us at CENTURY 21 Cedarcrest, he is equally impressive in his academic life. He was a project manager for NASA HUNCH, leading a team of students in creating prototypes for the International Space Station; they were recognized for their success, ranking in the top seven teams nationwide, by the U.S. House of Representatives.
“Omar represents what passionate, focused people can achieve in any field. The fact that as a new agent, at such a young age, he’s been able to get five real estate deals moving ahead this summer is a glimpse of where he’s going in life,” said John. “We are looking forward to helping him rock his real estate career as part of the new generation of agents we are bringing into CENTURY 21 Cedarcrest Realty.”
Eleven Years Already? Here’s to the Next 11 Years of Superior Service at CENTURY 21 Cedarcrest
We’re looking for dedicated real estate professionals and motivated newcomers to join the business
Broker owner John Sass and our real estate team at CENTURY 21 Cedarcrest Realty celebrated 11 years as a leading North Jersey real estate brokerage in June 2020. Where did the years go? It seems like yesterday that John took over the Caldwell office after many years in recruiting and training for other CENTURY 21 agencies.
Marking his 11th anniversary as broker owner, John notes these agency milestones:
- Taking ownership of Cedarcrest Realty in 2009
- Earning the CENTURY 21 Quality Service Pinnacle Award—the system’s top customer service award—10 years in a row
- The Caldwell office received the CENTURY 21 CENTURION® Award in 2018 (the top award for sales production) AND the CENTURY 21 President’s Award that year, which is a rare honor
- The President’s Award is most prestigious honor given to producers, teams and offices that achieve both CENTURION® level production and the Quality Service Pinnacle Award in the same year
- Opening a second office in Little Falls in 2019 to better serve home buyers and sellers and commercial clients throughout North Jersey
Positioning CENTURY 21 Cedarcrest for continued excellence
Our agency is always recruiting great people who want to become real estate agents or are experienced pros who want to make a move. We have two offices in North Jersey to staff with motivated, dedicated people who love sales, working with all sorts of people, and enjoy stepping up to meet the challenges we all face in today’s marketplace. The CENTURY 21 motto is “Be Relentless” and we are just that when it comes to delivering quality service to home buyers, sellers, and our team.
- New to real estate: Our office offers opportunities for people entering the real estate field, who are going for their real estate license, and who are seeking mentorship from top sales professionals, guidance, and professional development.
- Experienced agents: If you feel stale in the job, stalled in their career, or not supported at their current agency, please come talk to us. CENTURY 21 Cedarcrest offers the training and support you need to take your career and your transactions to the next level. We’ll share techniques to boost your production while providing the high level of service we’ve been known for over the past 11 years.
- Excellent training/support: We have our own on-site training room in our Caldwell office, where we’ve begun holding in-person classes again (with all the necessary health guidelines in place); we also have ongoing virtual training classes which include CENTURY 21 system-wide training as well as our own programs we’ve developed.
- Personal coaching: Our sales manager, Dennis DiSabato provides one-on-one coaching to agents at all levels of experience, applying his experience to help our team members put transactions together and get them to closing—including deals that encounter roadblocks that could derail them completely.
Drive, passion, communication
At CENTURY 21 Cedarcrest, we know the value of good old-fashioned communication; after all, real estate is a people-oriented business. It’s about building trust and relationships. If you’re someone who understands that sometimes, there’s no greater tool than getting on the phone to talk to buyers and sellers, let’s talk. We are adding to our team with people who rise to a challenge, address problems as they occur, and enjoy real conversations with people . . . professionals who understand how the real estate sales process works and how to make it work for them.
Interested? Contact John Sass at 973.228.1050, ext. 102 or johnsassc21re@gmail.com.
You Found Your Dream House Online – Now What?
Online shopping and e-commerce work great for clothing and housewares—but what about a house?
Many people start their home buying journey with online searches, made easy today by multiple listing services that real estate brokerages like CENTURY 21 Cedarcrest Realty subscribe to. Once only accessible to real estate professionals, these MLS listings are now readily available to consumers. But once you find a house online you want, then what do you do?
The importance of representation for buyers and sellers
If you think working without a real estate agent is easy—on either the home buying or selling side of the transaction—you might want to think again. According to CENTURY 21 Real Estate, there are around 180 steps involved in every successful real estate transaction.
Direct-to-consumer sales of homes or commercial properties lack a critical element in the sale or purchase of real estate—representation by a real estate professional, someone who works in your best interest to get you to the closing as smoothly as possible. There’s a lot at stake, and no real estate agent means you won’t having someone guiding you through all the steps in a DIY transaction.
When you work with a real estate agent, especially one who’s backed by an experienced, respected brokerage, you get service from start to finish, adding tremendous value and peace of mind, step by step.
- Writing the contract of sale
- Buyer pre-qualifications
- Arranging and conducting showings
- Staging the home
- Pricing and marketing the property
- Preparing buyers to make a strong offer that will be accepted
- Presenting the buyer to the seller
- Negotiations between buyer and seller
- Mortgage pre-approval and follow-through on the loan
- Setting up home inspection and appraisal
For many consumers, this is the largest dollar transaction they’ll conduct in their lives. There are numerous details to track during this important person-to-person arrangement. Having an experienced third party to handle the details is a key to success.
Award-winning service
At CENTURY 21 Cedarcrest Realty, we know what it takes to get buyers and sellers to the closing table, with annual service awards that recognize our commitment to our customers.
As a full-service real estate brokerage, we don’t skimp on service; rather, we invest in each transaction.
- We work closely with our buyers to show them how to structure a strong offer, which is especially important in a tight real estate market like North Jersey.
- We personally present buyers to sellers the old-fashioned way—with meaningful conversation.
- Our team will help stage your home or recommend professional home stagers to attract more prospective buyers.
- We set pricing at the right level for sale.
- We market your property to get the most people looking—from photos and videos to listings where they matter most.
- Follow up with all parties to keep the transaction moving forward – inspectors, lender, attorneys, etc.
- Coordinate the closing down and migration of utilities
When you work with CENTURY 21 Cedarcrest, you work with real estate agents who make sure every aspect of the process is set up, timed right, and followed through. As REALTORs we are also bound by a strict code of ethic and abide by the stated rules and regulations that protect buyers and sellers from illegal or unethical practices. If you’re on the market for a home or are preparing to sell yours, we’re here to help—every step of the way.
How to Handle a Real Estate Bidding War
In northern New Jersey, the inventory of homes for sale has been relatively tight for several years, with more prospective buyers vying for homes on the market. That often means a bidding war, as home buyers attempt to be the one who gets the house they want.
Also driving this demand right now is the trend forecasted a couple of months ago (in the early weeks of the pandemic) and is now a reality—people are leaving the cities for more space in the suburbs. We’re seeing not only an increased number of people in our sales lead pipeline, but also where they are from—the majority being from congested urban areas outside of the suburban Essex County and Passaic County towns. These are well-qualified buyers, usually in their mid-30s and starting families. They are looking for homes across price ranges and they’re bringing large down payments to secure the home of their dreams.
That said, we’re seeing every property—whether single family or two-family (another popular property type right now) being bid upon by multiple buyers. Some properties are selling for $50,000 over asking price and, with tight inventory, many go to contract within a week, especially those that are priced right at market level and are professionally staged.
Here are some recommendations for buyers in a tight housing market, to engage smartly in a bidding war:
1 – Before you even go out to look at houses, get pre-approved for a mortgage. We cannot stress this enough. This is more rigorous than pre-qualification because the mortgage lender will run your credit, check your job information, and verify income. Based on that, the lender will tell you how much money the bank is prepared to lend you with a commitment to an actual amount (subject to appraisal).
2 – Make a larger-than-normal down payment. This shows you have serious intention of buying.
3 – Accelerate the time frame for making the second deposit after signing the contract (within 5 to 7 days instead of 10). As soon as the contract is signed, make that next payment!
4 – Accelerate the home inspection as well; get it done within one business week instead of two.
Advice to sellers
Before you put your house on the market, invest in cosmetic upgrades and basic repairs, like painting, refinishing floors or replacing old carpet, or replacing a tired-looking bathroom vanity. Fix what’s broken, clean out the attic, and organize the garage and the basement. Consider getting a pre-inspection so you’ll have a home inspector’s report on the major issues to take care of in advance.
Also invest in real estate staging to visually merchandise your home. A professionally staged home sells more quickly, and that more inviting interior may invite higher bids.
With a house that shows well and hungry buyers at your door, it’s tempting to accept the highest price; but at CENTURY 21 Cedarcrest Realty, we feel it’s more important to accept the strongest buyers (see list above). Terms are so important now, especially as people are dealing with the effects of the pandemic, with layoffs, furloughs, or reduced hours. You want to make sure the buyer can complete the contract process without issue. Your Cedarcrest Realty real estate agent, as your partner, can help you assess your buyer pool.
Contact us if you’re thinking of listing your home for sale in northern New Jersey, or if you’re looking for a great house that checks off all the boxes for you. We have two offices to serve you, in Caldwell (973) 228-1050 and Little Falls (973) 364-1111.
Buying and Selling Real Estate During the Pandemic
John Sass, broker owner of CENTURY 21 Cedarcrest Realty
While we all work through the COVID-19 pandemic, the business of real estate continues in different ways. For homeowners wishing to sell and prospective buyers looking for their new home, conducting real estate transactions continues, with modifications.
CENTURY 21® Real Estate LLC has been a national leader in real estate technology, with strong marketing and listing tools. Technology now plays a central and highly visible role in how real estate is done now—from the virtual sales meetings that brokerages hold for their agents to virtual tours posted online for buyers.
Technology brings efficiency and safety
At CENTURY 21 Cedarcrest Realty, we had already been doing extensive virtual tours, created by our system automatically with images shot by professional photographers. These provide buyers with a full view of a home’s interior and exterior; they’re a great way for buyers to save time as they get a feel for home styles, narrow down their search to which properties to see in person, and make informed decisions about what they can afford. These video tours are augmented by floor plans of each home on the MLS listing, which further help buyers in their decision-making process.
Buyers appreciate the ability to view homes online at their convenience and from any distance; and in today’s environment, sellers appreciate that this limits the number of people coming into their home.
We also stay in touch with our customers via video chat and Facebook Live (as well as phone and email, of course) and are using various online meeting platforms to connect with our sales associates and strategic partners as more people work remotely.
Coronavirus safety protocols
Early in the pandemic, CENTURY 21 Cedarcrest Realty implemented our nationwide system’s buyer and seller showing protocols, which are designed to protect all parties involved and ensure that everyone who works with our team is comfortable. In fact, we will only work with other professionals and customers who follow our prescribed safety measures.
- Anyone entering a home must wear gloves, a mask, and shoe booties: real estate agents, buyers, photographers, appraisers, and home inspectors.
- The homeowners are asked to turn on all the lights in the house and leave while the photographer is there to take pictures. This avoids unnecessary contact with light switches and people.
- We conduct in-person, one-on-one showings only (no open houses). Again, all the lights are on in advance and buyers and agents (and sellers) adhere to the six-foot distancing rule.
- Our agents must state in writing that they have not had the virus, as do all buyers and sellers with whom we do business. If any party to the transaction did have the virus, this must be disclosed, and all parties must acknowledge this and consent to moving forward.
- Buyers must get preapprovals from their mortgage company before seeing a property. This limits the number of people viewing a home in a certain price range; and in today’s market, with historically low interest rates, this prequalification also benefits the buyer to lock into a low rate now.
- Attorneys and title companies are working virtually, with electronic documents and e-signature capabilities for contactless paperwork and closings with limited contact.
- Our two office locations are disinfected regularly, conference room use is limited, and measures are in place to reduce the potential for infection from secondary contact from surfaces.
At CENTURY 21 Cedarcrest, we have the experience, market knowledge, and real estate technology to adapt to the rapidly changing world we are now in. We have a range of listings—single-family homes, condos, and townhouses—in great suburban locations. After you’ve taken a few virtual video tours, contact us to arrange a showing.
Winter Home Improvement Projects for North Jersey Homeowners
In northeast New Jersey where our offices are located, snow, ice and cold temperatures make outdoor renovation and home improvement projects unlikely in the winter. However, there are some projects you can do now to get your home ready for an early spring showing, or to beautify and update your home for your pleasure.
If your project requires a contractor or home improvement specialist, you may be able to take advantage of these professionals’ off season in terms of scheduling and rates., before they get into the spring hustle.
TIP: Remember to check your municipality regarding which kinds of projects require permits from the building department and build that into your timeline.
Paint and accessories
Painting your home’s interior is a great indoor project and instantly refreshes rooms (we recommend you choose light neutral tones if your home is going on the market). After you’re done painting, you might be inspired to change out carpeting or area rugs, add toss pillows in new colors, or hang new drapes in coordinating colors.
Bathroom or kitchen remodel
Whether you’re considering cosmetic changes such as new kitchen counters and cabinets, or a new bathroom vanity, or a more large-scale renovation, remodeling will bring new life to your home. A full kitchen renovation may not pay off in terms of sale price, since tastes and lifestyles differ, but appliance upgrades, freshening up cabinetry, and new lighting are great ways to update a kitchen.
A popular bathroom upgrade is to replace the traditional showerhead with a spa-style showerhead that offer a more luxurious shower experience. Handheld shower heads are also a great (and less expensive) shower upgrade. If you’re going for a full bathroom remodel, heated floors, overhead heat lamp, and heated towel bars are other luxuries to consider including.
Even low-cost updates, such as painting walls a new color or adding a colorful backsplash can perk up these spaces and add value to your home. If you’re prepping your home for sale, these changes will also give you new ideas for real estate staging.
Weatherproofing
There are many ways to make your home more energy efficient and comfortable, from adding insulation to walls or the attic to sealing up cracks and caulking around windows. Even your high-hat lighting cans can be an entry point for cold or hot air. Replacing old exterior doors with insulated models will also “tighten the envelope.” Installing smart thermostats also help control energy costs. A more expensive project with long-term benefits is to replace old windows with top-quality energy-efficient windows.
Organize the garage
Grab a jacket and get out there to organize your gardening, snow and hand tools. Hang wall units made specially for holding and hanging these items, and shelves above or in front of vehicles to stack boxes, cans and large objects. If you have a workbench, hang a peg board for hand tools and store large items underneath the table. Clean out what you no longer need (including old boxes of stuff that came with you from the last move).
Prune and nourish your trees
OK, this one’s outdoors . . . but late winter is a great time to trim trees and shrubs before the spring bloom starts. The bare limbs give you clear visibility and because the trees and shrubs are dormant, they are less likely to attract insects or disease. This is also a time to add fertilizer in preparation for spring. Take time now to plan out any landscaping updates as well.
Install a security system
From smart doorbells to connected alarms, these products will keep your family and belongings safer and are a great selling point to prospective buyers.
Finish the basement
This is a highly worthwhile project, providing extra (and insulated) workspace, storage, a playroom or entertainment area for your family-even a guest bedroom depending on the home’s structure. A finished basement also increases your home’s value. It’s like adding on a room without breaking ground.
At CENTURY 21 Cedarcrest Realty, our sales associates will review your home improvement plans or discuss timely projects that make good sense to handle right now. Contact us for questions about listing your North Jersey real estate.
Spotlight on . . . Eugenia France
Veteran real estate professional Eugenia France joined Cedarcrest Realty in November 2019 and is already making her mark in terms of transactions at our agency. Eugenia, who came to the U.S. in 1987, has been working in real estate since 1992 and according to broker owner John Sass, “Eugenia’s experience really shows. She has already done half a dozen transactions to date, with two currently under contract. She knows the system and comes to work every day ready to get things done. We’re delighted to have her on the Cedarcrest team.”
And this is with Eugenia, a native of Brazil, spending several weeks visiting family in her home country!
Early in her career, she was at another CENTURY 21 office, working with home buyers and sellers primarily in Belleville, Bloomfield, Glen Ridge, Newark, and Nutley. It was there that she first met John, who at the time was doing training and recruiting for the system. She was most recently with a brokerage in Newark and although she was the top producer there, she was not happy with the work environment and decided to make a move last fall. She came across John’s name and contacted him to find out if there were any opportunities at CENTURY 21 Cedarcrest.
As someone who has been self-employed since coming to the States, Eugenia said real estate appealed to her because, “You can make your own schedule and develop a business. I enjoy dealing with people and making them happy when they find the right house—and it feels great when that happens. But it’s also a great feeling when those customers refer me to someone else; it means I’ve done a good job.”
Although she’s done some commercial real estate work before, Eugenia prefers residential real estate. “You participate more in the residential transaction and I like guiding the contract process, which I didn’t get to do as much in commercial deals.”
Of her decision to join the Cedarcrest team, she said, “It’s a much nicer workplace; people treat each other well, John respects his team, and there are opportunities to grow here.” She works in our Caldwell office-and we’re glad she’s there!
On the Market for a Home? Here are Five Considerations Before You Buy.
Are you a first-time home buyer? If so, here are five issues into consideration as you engage in your house hunt. Doing so will help avoid surprises that could bog down your transaction.
Is now the right time for you to buy?
This depends somewhat on your career situation. According to the Bureau of Labor Statistics, the median tenure of workers of ages 55 to 64 is 10.1 years, while for workers ages 25 to 34, it is only 2.8 years on average. If a distant job relocation is in the foreseeable future or career advancement is likely to take you out of the area, consider remaining a renter for now. Conventional wisdom is that you need to stay in the home for at least five years in order to recoup the amount of money you spent to purchase it.
Identify your housing criteria
Do you have a “dream home” in mind? Are you willing to modify your dream? After all, no house is totally perfect. We suggest you:
- Create a list of absolute musts and reasons why—such as the town (for the school district, town services, property tax rate, environment), style and size of house, proximity to work, public transportation, etc.
- Be flexible. Cosmetic updates may be needed in an otherwise great house so don’t let those deter you. If you like a house that needs a lot of work but has great bones, ask if the selling price is negotiable enough to make a reasonable offer.
What can you afford—including closing costs?
Set yourself up for success by first developing a budget that includes how much down payment and monthly mortgage payments you can afford. Then, look at the closing fees you’ll have to cover at time of loan settlement. These are fees paid to various third parties as part of expediting and closing the transaction.
As the home buyer, you are expected to cover most of those closing costs (3-4% of the home’s price) compared to what the seller will. Included are:
- Title company closing fee for the representative who supervises the title transfer
- Title search – this ensures there are no liens on the property to prevent you from buying it
- Lender’s title insurance – protects the mortgage lender if something was overlooked in the title search
- Document recording fees (deed and mortgage)
- Loan origination fee – paperwork processing
- Home appraisal
- Home inspection
- Survey fee (single-family homes, townhomes)
- Escrow deposit – usually covers two months of prepaid property taxes and mortgage insurance payments
- Taxes on money you borrowed for your home loan
- Discount/mortgage points – paid to your lender in exchange for a lower interest rate, which has great long-term value
- PMI, or private mortgage insurance, if you put down less than 20 percent of the purchase price
- Other fees include running your credit report, underwriting and assessing your creditworthiness, wire/courier fees, attorney fees, and real estate agent commission
Federal law mandates that mortgage lenders provide borrowers with a loan estimate form in advance of the closing, denoting all the approximate closing costs. You may opt to roll the closing costs into the mortgage, but you’ll be paying interest on that amount for the life of the loan.
NOTE: If buying a condominium, get as much information as you can about the homeowners association fees/common area charges, the regulations regarding home improvements in your unit, and the association’s track record on maintenance and repairs.
Check your credit report
As noted above, the lender will be doing so and so should you. Contact Equifax, Experian and/or TransUnion for your free annual report. You want your credit score (FICO score) to be high enough to qualify you for a favorable rate. Clean up any outdated or incorrect information you find on the report right away. Scores in the 750-850 range are considered excellent, 700-749 is good. Anything below 650 is considered poor, making you a credit risk in lenders’ eyes.
Work with CENTURY 21 Cedarcrest Realty
Searching for a home—whether as a first-time buyer or a seasoned residential real estate owner—is exciting but with all the details, it can be bit daunting and time-consuming. At CENTURY 21 Cedarcrest, our real estate professionals are dedicated to producing the best outcomes for every customer. When you work with our team, you’ll be with people who work tirelessly to help you navigate your real estate experience—with enthusiasm, confidence, and a passion for superior service—all backed by the industry-leading CENTURY 21® system and tools.
Contact us to get started on your journey to home ownership, or to find your next great home. We’re specialists in Essex County and Passaic County, NJ, and represent buyers and sellers from municipalities throughout North Jersey.
