New Jersey Real Estate Lawyer
New Jersey Real Estate Purchase Lawyer
Considerations When Purchasing Your New Home
When purchasing your New Home an Inspection is critical to determine the condition of the property. Inspections should be made by competent Home Inspectors of all mechanical units such as the heating and air conditioning system and the water heater as well. If your new home has a wood burning fireplace a chimney inspection is also highly recommended as these can be dangerous and a fire hazard if deteriorated not serviced and cleaned on a periodic basis. If your home contains a swimming pool this should also be inspected as defects may be hidden to the untrained eye and cost thousands to repair later. Structural defects and poor designs must also be identified and addressed by the parties if found to exist. Speak with a New Jersey Real Estate Puchase Lawyer today.
Oil Tank Issues
When purchasing your new home, if it is an older home, it may contain an underground buried oil tank. This creates a number of issues all of which are bad. If you fail to identify the issue and the tank is later found to have leaked it will be the purchaser's responsibility to pay for the clean up costs. This can cost thousands of dollars as the tank and all contaminated soil needs to be removed and disposed of in an environmentally acceptable manner. Even though your home appears to be heated by Gas, at one time in the past it may have been heated by use of an underground oil tank. Speak with a New Jersey Real Estate Puchase Lawyer today.
Call today to discuss you Real Estate Purchase
Steven P. Lombardi, Esq.
In New Jersey some areas contain high levels of Radon gases. These odorless and colorless gases have been proven to be a probable cancer causing agent. The gas occurs naturally from the radioactive decay of granite. The problems areas with radon usually cluster in concentrated areas and can be located in any area. Most of the high concentration areas in New Jersey are located in the Northern part of the state known as the Highlands and Piedmont Areas. Review a map of Radon Areas here. For more information review the NJ DEP Website. Speak with a New Jersey Real Estate Puchase Lawyer today.
Title Searches and Issues with Title Defects
When purchasing your new home a Title Insurance Policy will be required by the Lender. As a precursor to obtaining this insurance a search of the public records will be made. This may discover title defects such as open mortgages and judgments against prior owners of the property not necessarily the current sellers. These defects must be removed before a clean transfer of title can be made. Our Firm is highly experienced in remedying these property issues. As many times the original lenders of Open Mortgages are no longer in business or the banks have merged multiple times solving these issues requires an in depth knowledge of the complex methods to resolve these issues. Sometimes a court action becomes necessary to remove these liens and property encumbrances. Speak with a New Jersey Real Estate Puchase Lawyer today.
Financing in the Modern World
Since the financial crisis hit in 2008 lenders have been increasingly unwilling to make home loans. Gone are the "No Doc" loans and loans to individuals who attempt to flip houses using residential mortgage loans. Banks that took TARP money now have increased Federal Requirements and obligations to support their lending practices. This has resulted in a tightening of the credit market. Today's financing is a difficult, time consuming and frustrating process. Lenders are requiring larger deposits and are unwilling to lend high dollar amounts in Jumbo Loans. We here at the Lombardi Law Firm can assist you through the loan process by steering you to the best lenders and away from the difficult problem lenders. Speak with a New Jersey Real Estate Puchase Lawyer today.
Criteria Banks Use in giving Mortgages vary from lender to lender however most banks use a Debt to Income Formula as their primary criteria. Debt to Income Ratio (DTI) – One of the first factors a lender may consider when deciding how large a mortgage loan you qualify for is your debt to income ratio, or DTI. To calculate your DTI, add up your current monthly debt (credit card payments, car loans, etc.) and divide it by your total monthly pre-tax gross income. This percentage ratio is a simple way of showing how much of your income is available to make a mortgage loan payment after all other continuing debt obligations are met.Lenders often call this the 28/36 qualifying ratio. The first number, 28 percent, indicates the maximum amount of your monthly pre-tax gross income that the lender allows for monthly housing expenses. This amount will include principal and interest of the loan, property taxes, and homeowner’s insurance, or PITI. The second number, 36 percent, refers to the maximum percentage of your monthly pre-tax gross income that the lender allows for all monthly housing expenses plus all recurring debt.If your ratio numbers are higher than 28/36, you may want to consider reducing debt by paying off credit cards or other loans before starting your home search.When calculating and relying on your DTI to determine loan affordability, be confident with your numbers and do not be afraid to stick with them as you shop around. Some lenders may allow higher ratios and be willing to loan you amounts that will take you beyond the traditional qualifying ratio and what you
When purchasing your new home care must be taken in reviewing the contract to avoid any complications if you have to terminate the deal for any reason. In today's challenging economic times many any times real estate purchases cannot occur due to the buyer's inability to obtain financing. Lenders in today's world are closely scrutinizing loan applications and reviewing the financial capabilities of loan applicants before approving loans. Home appraisals also sometimes complicate the financing when the properties fail to appraise high enough to allow for the bank underwriters to approve the loan. Sometimes the condition of the property will also warrant a cancellation of the contract. Consideration must be made to protect the Buyer's Deposit and avoid any future litigation or breach of contract claims if the deal falls through.
Can I afford my new Home ?
Mortgage Payments - Taxes - Homeowners Insurance - Flood Insurance It can all add up quickly and be confusing. A good way to start the process is to use a Mortgage Calculator. Speak with a New Jersey Real Estate Puchase Lawyer today.
Commonly Used Terms
For definitions of some commonly used terms in the Home Purchasing universe click here to discovery what the acronyms mean such as PMI, ARMs, FHA and other commonly used terms. Speak with a New Jersey Real Estate Puchase Lawyer today about your real estate purchase.
Seller's Issues for Real Estate Transactions
New Jersey Real Estate Sale Lawyer
For further discussion of the issues when selling Residential or Commercial Real Estate click into our Seller's Issues Page.
Law Office of
Steven P. Lombardi
318 Main Street
Suite 101 B
Millburn, NJ 07041
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MONMOUTH COUNTY OFFICE
Atlantic Highlands NJ 07716
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