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Buyer's Guide

A Step-by-Step First Time Buyer's Guide

Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by our team will help reduce the stress of buying a home and help you enjoy the journey as much as possible.

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Step 1: Deciding to Buy

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.

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.

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Step 2: Preparing to buy

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, and 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.;

 

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Step 3: Choose a Real Estate Agent

Buying a property requires making many important financial decisions, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner when undertaking such a large purchase. We can guide you through this process, and also provide you with access to property listings before they hit the general market.

How to Choose a Real Estate Agent When Buying

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.
  • Interview a few agents: Are they familiar with the area in which you are interested?
  • Ask how much time the agent will have for you, and if they are available at night and on weekends.
  • 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.
  • Ask for a list of properties they have sold or a list of references.
  • Choose an agent who listens attentively to your needs and concerns. Pick an agent, with whom you feel comfortable.
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Step 4: Time to Go Shopping

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. Start getting a sense of the properties available in those areas.

Narrow Your Search

Select a few properties that interest you the most and have your real estate agent make appointments to visit them. Ask your real estate agent about the potential long term resale value of the properties you are considering.

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 good agent will investigate the potential costs and expenses associated with the new property. An agent can also help you draft your offer in a way that gives you the advantage over another offer.

Passion & Expertise

Our goal is to provide you with the most personalized service possible, meticulously designed to help you navigate the process of buying your dream home. We are dedicated to understanding your unique needs and preferences, ensuring that every step of the journey is tailored to achieve your ultimate home-buying aspirations.

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Step 5: Escrow Inspections and Appraisals

The Process, Step-by-Step
The Initial Agreement and Deposit

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller.

Some important tips to keep in mind to streamline the process:

  • Keep written records of everything. For the sake of clarity, it will be extremely useful to transcribe all verbal agreements including counter-offers and addendums and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
  • Stick to the schedule. Now that you have chosen your offer, you and the seller will be given a timeline to mark every stage in the process of closing the real estate contract. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. During the process we will keep you constantly updated, so you will always be prepared for the next step.
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The Closing Agent

Either a title company or an attorney will be selected as a closing agent. The closing agent will hold the deposit in escrow and will research the complete recorded history of the property to ensure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities such as building or parking restrictions. There may be recorded easements and encroachments, which limit the rights to use your property.

How to Hold Title

You may wish to consult an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.

Inspections

Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the time frame that was agreed upon in the effective contract to purchase. You may elect to have different inspectors inspect the property, if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). If you are purchasing a commercial property, then you will need to have an environmental audit done on the site for the lending institution. We can recommend several different inspectors.

Depending on the outcome of these inspections, one of two things may happen:

1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or

2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).

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Appraisal and Lending

It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.

Association Approval

If the property that you are purchasing is conditional upon an association approval, request the rules, regulations, and other important documents from the seller as soon as you have an effective agreement to purchase. Make sure that the application documents and processing fees are submitted to the appropriate person at the association by the required time. Fill out all of the information completely and legibly so there is no delay in processing the application. If you are required to meet with the association for your approval, make an appointment as soon as possible for the interview. Most associations require a certificate of approval before move-in. Your closing agent will request that the original copy of this approval letter be brought to the closing, so that it can be recorded with the deed in the county public records.

Property Insurance

If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.

  • Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
  • Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.
  • Insure your house NOT the land under it. After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

We will be happy to recommend experienced knowledgeable insurance agents for every property type.

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Step 8: Moving In

Closing Day

If you have come this far, then this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:

Final Walk-Through Inspection

More of a formality than anything else, the final inspection takes place a day before, or the day of the closing. You will visit the property to verify that all is in working order, everything is the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.

Home Services and Utilities

We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.

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Be Prepared

We are ready to assist you should an unforeseen glitch pop up, even at this last stage. Something at the property breaks down, or some other minor detail – no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manor.

Closing

The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution. If you are unable to attend the scheduled closing, arrangements can be made depending on the circumstances and the notice that we receive. If you are bringing funds to the transaction, you can elect to either have the funds wired electronically into the closing agent’s escrow account, or bring a certified bank check to the closing in the amount specified on the settlement statement. The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items at this time.

Congratulations!

After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams. 

Our Clients Say It Best

Success Stories

Read what our clients have to say about working with us.

"Ten Hoeve Realty Group checks all the boxes and more. We had the pleasure of partnering with DJ and his team, Tiffany, Alicia and Mike, to represent us during the sale of our home. They provided excellent service and advice, all lead with professionalism and knowledge. DJ’s extensive knowledge of the market allowed us to sell our house during an optimal sale-time at a prime price. His client-centric approach was apparent from our first meeting to the final sale. By listening to our needs and goals, DJ created a detailed plan and share a step by step process. The whole team was responsive and communicated clearly and in a timely manner to all our emails, texts, and calls. There were no surpises in what we would expect. They coordinated he open house and viewings effectively and expedited paperwork resulting in a quick sale. We thank DJ for he skilled negotiations skills! We highly recommend Ten Hoeve; you won’t regret hiring them!"
"Ten Hoeve Realty Group checks all the boxes and more. We had the pleasure of partnering with DJ and his team, Tiffany, Alicia and Mike, to represent us during the sale of our home. They provided excellent service and advice, all lead with professionalism and knowledge. DJ’s extensive knowledge of the market allowed us to sell our house during an optimal sale-time at a prime price. His client-centric approach was apparent from our first meeting to the final sale. By listening to our needs and goals, DJ created a detailed plan and share a step by step process. The whole team was responsive and communicated clearly and in a timely manner to all our emails, texts, and calls. There were no surpises in what we would expect. They coordinated he open house and viewings effectively and expedited paperwork resulting in a quick sale. We thank DJ for he skilled negotiations skills! We highly recommend Ten Hoeve; you won’t regret hiring them!"
Marie F.
"Could not be happier working with Amy Neff at Ten Hove! We love our new home and the process was smooth and enjoyable! Highly recommend."
"Could not be happier working with Amy Neff at Ten Hove! We love our new home and the process was smooth and enjoyable! Highly recommend."
Heidi B.
"This was our second time working with AJ - the first time he helped us buy our home, and this time he helped us sell. AJ is the best, and we can't recommend him highly enough. He is incredibly responsive, thorough, and confident in his knowledge of the market; he's efficient, approachable, and does a great job of explaining his thought process and answers to questions we may have; and is always more than willing to go the extra mile to make sure we're comfortable and confident. Nothing throws AJ off his game, he was always available for a call or a meeting, and he did a great job of make sure we were heard and our opinions were valued throughout the process. If you're looking to buy or sell your home, look no further than AJ!"
"This was our second time working with AJ - the first time he helped us buy our home, and this time he helped us sell. AJ is the best, and we can't recommend him highly enough. He is incredibly responsive, thorough, and confident in his knowledge of the market; he's efficient, approachable, and does a great job of explaining his thought process and answers to questions we may have; and is always more than willing to go the extra mile to make sure we're comfortable and confident. Nothing throws AJ off his game, he was always available for a call or a meeting, and he did a great job of make sure we were heard and our opinions were valued throughout the process. If you're looking to buy or sell your home, look no further than AJ!"
Jessica I.
"Buying in today’s market can be a very stressful experience. Mike Ash’s guidance was truly amazing! We had an exceptional experience buying our first property in Hoboken. Mike was extremely patient and responded promptly and thoroughly to all our questions. His expertise knowledge of the real estate industry and the New Jersey real estate market is extensive. Mike’s enthusiasm and personality is incredible. His clients are always priority one for him, striving to meet their expectations and personal needs while becoming friends in the process. He was a pleasure to work with and has not only met but has exceeded our expectations. We highly recommend Mike Ash without hesitation!"
"Buying in today’s market can be a very stressful experience. Mike Ash’s guidance was truly amazing! We had an exceptional experience buying our first property in Hoboken. Mike was extremely patient and responded promptly and thoroughly to all our questions. His expertise knowledge of the real estate industry and the New Jersey real estate market is extensive. Mike’s enthusiasm and personality is incredible. His clients are always priority one for him, striving to meet their expectations and personal needs while becoming friends in the process. He was a pleasure to work with and has not only met but has exceeded our expectations. We highly recommend Mike Ash without hesitation!"
Susan S.
"Sabrina was super helpful and made the whole home-buying process easy and stress-free. She explained each step of the process and made sure we were comfortable with everything. I could not recommend Sabrina enough!"
"Sabrina was super helpful and made the whole home-buying process easy and stress-free. She explained each step of the process and made sure we were comfortable with everything. I could not recommend Sabrina enough!"
FKW IV
"There is no better realtor in the Rumson NJ area, than DJ Ten Hoeve. We were looking for a really specific type of property in a fairly small search area, and initially, the realtor we were working with was not able to find any properties so we let them go. We wound up getting referred to DJ, and instantly it was obvious why DJ was so popular. He not only knows this market better than anyone, but he also has no problem going door to door (literally) to find the right property for his clients. Within days of working with him, we were walking several amazing properties in Rumson. And now, a few months later, we are moving into our dream home! And this is all because DJ found our property super early on, which allowed us to make a super competitive offer. In addition to DJ being an amazing A+ realtor with all the connections, he is also extremely friendly, and professional and just makes you feel comfortable despite going through a pretty stressful process. I am going to recommend DJ and his team to anyone who plans to move to this area. He is a 10/10 easily."
"There is no better realtor in the Rumson NJ area, than DJ Ten Hoeve. We were looking for a really specific type of property in a fairly small search area, and initially, the realtor we were working with was not able to find any properties so we let them go. We wound up getting referred to DJ, and instantly it was obvious why DJ was so popular. He not only knows this market better than anyone, but he also has no problem going door to door (literally) to find the right property for his clients. Within days of working with him, we were walking several amazing properties in Rumson. And now, a few months later, we are moving into our dream home! And this is all because DJ found our property super early on, which allowed us to make a super competitive offer. In addition to DJ being an amazing A+ realtor with all the connections, he is also extremely friendly, and professional and just makes you feel comfortable despite going through a pretty stressful process. I am going to recommend DJ and his team to anyone who plans to move to this area. He is a 10/10 easily."
Mr. Ballen
"This review is long overdue, but it’s been on my list of things to do because AJ really is the best. Early on in our home search, we saw a house we really liked on Zillow that we just had to see in person and made an appointment to do so. AJ ended up being the agent that showed the house to us that day. Things didn’t work out with that initial house we saw, but we ended up sitting down and talking with AJ to figure out what we were hoping to find in a new home and also what to do with our current home. He really put us at ease with his knowledge. AJ has a great sense of the market and really gave expert advice. We ended up listing our home with AJ, while he continued to help us find our new home. We must have looked at a hundred homes in ten different towns. AJ was great throughout the process. He’s always punctual, polite, and quick to respond to all of your questions or concerns. He goes above and beyond to keep his clients happy. After what seemed like forever, AJ finally found a home we fell in love with even though it wasn’t even on the market. We sold our home and purchased the new one, and AJ really did his best to make the process as painless as possible. During the walkthrough, one of the rooms was a different color than we were expecting. AJ went and repainted the room the night before our closing without our knowledge or us asking him to do so. That’s the kind of guy he is. Whether you’re selling or buying a new home, there isn’t a better person to have on your side than AJ."
"This review is long overdue, but it’s been on my list of things to do because AJ really is the best. Early on in our home search, we saw a house we really liked on Zillow that we just had to see in person and made an appointment to do so. AJ ended up being the agent that showed the house to us that day. Things didn’t work out with that initial house we saw, but we ended up sitting down and talking with AJ to figure out what we were hoping to find in a new home and also what to do with our current home. He really put us at ease with his knowledge. AJ has a great sense of the market and really gave expert advice. We ended up listing our home with AJ, while he continued to help us find our new home. We must have looked at a hundred homes in ten different towns. AJ was great throughout the process. He’s always punctual, polite, and quick to respond to all of your questions or concerns. He goes above and beyond to keep his clients happy. After what seemed like forever, AJ finally found a home we fell in love with even though it wasn’t even on the market. We sold our home and purchased the new one, and AJ really did his best to make the process as painless as possible. During the walkthrough, one of the rooms was a different color than we were expecting. AJ went and repainted the room the night before our closing without our knowledge or us asking him to do so. That’s the kind of guy he is. Whether you’re selling or buying a new home, there isn’t a better person to have on your side than AJ."
Eric C.
"DJ sold my house from his hospital bed! true story! I have worked with DJ before and will continue to work with him and his team because he simply comes through. He is extremely hard working and professional, and his team equals him in their dedication, drive for success and client focus. His photography team is top notch, they literally made my house sparkle! The showing agents were timely, knowledgeable and effective. DJ went well above and beyond to work with my buyer and I can’t possibly thank him enough for all the effort he put in to make my home sale as seamless as possible."
"DJ sold my house from his hospital bed! true story! I have worked with DJ before and will continue to work with him and his team because he simply comes through. He is extremely hard working and professional, and his team equals him in their dedication, drive for success and client focus. His photography team is top notch, they literally made my house sparkle! The showing agents were timely, knowledgeable and effective. DJ went well above and beyond to work with my buyer and I can’t possibly thank him enough for all the effort he put in to make my home sale as seamless as possible."
Kristen B.
"AJ was recommended to my wife and I by a reputable contractor. After reaching out to AJ, I quickly saw for myself how knowledgeable and professional he is. After he did such a great job finding us the perfect home and making the home buying process so easy and stress free, we quickly decided to list our home for sale with him as well. This is where we became even more impressed with his skill, knowledge, customer service and social media presence. In a week and a half, we were under contract to sell our home for full asking price because of AJ‘s and his team’s dedication. Throughout the entire buying and selling process, his responsiveness and commitment to us were second to none. Simply put, there is no one better."
"AJ was recommended to my wife and I by a reputable contractor. After reaching out to AJ, I quickly saw for myself how knowledgeable and professional he is. After he did such a great job finding us the perfect home and making the home buying process so easy and stress free, we quickly decided to list our home for sale with him as well. This is where we became even more impressed with his skill, knowledge, customer service and social media presence. In a week and a half, we were under contract to sell our home for full asking price because of AJ‘s and his team’s dedication. Throughout the entire buying and selling process, his responsiveness and commitment to us were second to none. Simply put, there is no one better."
David V.
"Selling my home was the most difficult thing I’ve ever had to do – just sheer volume of information that needed to be processed, things that had to be done, issues that had to be addressed was completely overwhelming, not to mention emotional toll of dismantling the place where I raised my family for 16 years. And that’s why I feel so grateful to have worked with Nici and DJ! From the very first meeting to the last signature on the contract, I felt guided and supported, treated with utmost respect and professionalism, and never left wondering about the next step. I was so impressed with DJ’s through, methodical approach, great instincts, ability to react quickly and respond efficiently. I was also touched by DJ’s and Nici’s willingness to help when help was needed. Thank you!"
"Selling my home was the most difficult thing I’ve ever had to do – just sheer volume of information that needed to be processed, things that had to be done, issues that had to be addressed was completely overwhelming, not to mention emotional toll of dismantling the place where I raised my family for 16 years. And that’s why I feel so grateful to have worked with Nici and DJ! From the very first meeting to the last signature on the contract, I felt guided and supported, treated with utmost respect and professionalism, and never left wondering about the next step. I was so impressed with DJ’s through, methodical approach, great instincts, ability to react quickly and respond efficiently. I was also touched by DJ’s and Nici’s willingness to help when help was needed. Thank you!"
Yelena B.

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