A condo (short for condominium) is a unit in a multi-unit development similar to an apartment. Condos are individually owned and occupied. Access to common facilities including hallways, heating system, elevators and other exterior areas are shared with the other association owners. Condos can be purchased directly from a developer or from the current condo owner. Purchasing a condo in New Jersey requires financing, a down payment and other requirements. Buying a condo in New Jersey is similar to purchasing a single family home.
Get Pre-Approved for a Loan
Consult with a mortgage lender in New Jersey to get pre-approved for a mortgage loan. The type of loan and the amount of the loan will be determined in the pre-approval process and you a price range with which to work. Most realtors will not begin working on condo listings without a pre-approval letter.
Hire a Realtor
Locate a real estate broker or realtor in New Jersey that specializes in condo sales. Interview the realtor to make sure they are knowledgeable and able to offer what they promise. Getting referrals from friends or co-workers is another way to find a trusted realtor.
Determine Your Needs
Create a search profile with the realtor. The realtor creates a search profile by inputting criteria based on preferred needs including location, number of bedrooms and other condo amenities. Listings of potential condos can quickly be sorted through and eliminated if they don't meet the established search criteria.
Browse the Available Listings
View the condo listings that meet all or most of the search profile. Realtors will arrange for home tours for you to view the condo's interior and find out more information on amenities and the terms of purchase.
Determine Your Terms
Negotiate the terms of the sale. The realtor will provide information on similar condo sale prices in the building, the terms and conditions of the sale, arrange building and unit inspections. A realtor can also negotiate the purchase price and additional conditions of the seller.
Make an Offer
The realtor will contact the owner of the condo and submit a bid for the condo. After the offer is accepted, the realtor prepares the contracts and provides additional details on the closing process.
Utilize a Real Estate Attorney
Have an attorney review all contracts before necessary parties sign. Hiring an attorney with a background in real estate contracts is recommended. After the attorney reviews all parties, sign the necessary documents. You will then be considered to be under contract.
Complete the Mortgage Process
Apply for the mortgage from the New Jersey lending institution that processed the pre-approval. A 30-day window is given in New Jersey to make a mortgage commitment. Payment of additional deposits will also be due.
Get Ready for Closing
Work with the seller, the mortgage lender, the realtor and the attorney/title agency on the closing process. Closing on the New Jersey condo occurs when all parties sign and complete the final transaction. The title and the condo is then transferred from the seller to the buyer. The payment for the condo is processed, the seller is paid and the buyer gets the keys.
- NorthJersey.com: What You Need to Know to Buy a Condo in New Jersey
- NJ Lenders Corp.: Tips for Buying a Condo in New Jersey, With a Market Update
- National Council of State Housing Authorities. "FHA Issues New Review Requirements for Condominium Loans." Accessed May 11, 2020.
- First Heritage Mortgage. "What Is a Non-Warrantable Condo?" Accessed May 11, 2020.
- United States Government. "Code of Federal Regulations: Title 24, Housing and Urban Development. Part 234, Condominium Ownership Mortgage Insurance." Accessed May 11, 2020.
Candace N. Smith is a fashion and business writer in New York. Beginning her writing career in 2007, her work has appeared in various fashion publications including "Kouture Magazine." Graduating cum laude with a Bachelor of Fine Arts in fashion marketing from American InterContinental University, Los Angeles, she's taken her experience in fashion, marketing and brand management, and shares that knowledge in her writing.