Frequently Asked Questions

You almost certainly don't need 20% down. Conventional loans start at 3% down, FHA at 3.5%, and VA and USDA loans go to zero for buyers who qualify. A smaller down payment means paying mortgage insurance, but on a conventional loan that comes off once you reach 20% equity. Ask your lender to price 3%, 5% and 20% down side by side so you can see the tradeoff in the actual monthly payment — and ask whether you qualify for New Jersey down payment assistance on top of it.

The New Jersey Housing and Mortgage Finance Agency offers Down Payment Assistance of up to $15,000 depending on the county — interest-free, with no monthly payment, and forgiven after five years in the home. The First Generation program adds $7,000 on top for buyers whose parents never owned a home. Both require an NJHMFA first mortgage and carry income and purchase-price limits, so confirm eligibility with an approved lender early. It is one of the most overlooked ways Central Jersey buyers get into a home with less cash out of pocket.

Most lenders want to see a score in at least the low 600s, but the gap between an acceptable score and a strong one is worth real money — a fraction of a percent on a thirty-year loan adds up to tens of thousands of dollars. The levers are slow: get balances under 30% of your limits, dispute any inaccuracies on all three reports, pay every bill on time, and leave your oldest cards open. Because corrections take 30 to 45 days, pull all three credit reports six months before you plan to buy, not six days.

A pre-qualification is a conversation — a rough estimate based on what you tell the lender. A pre-approval means an underwriter has actually reviewed your pay stubs, W-2s, bank statements and credit, and that is the letter a listing agent takes seriously. When a house in Edison or Metuchen draws six offers, the listing agent often calls your lender before the seller decides, so a local lender who answers that call is worth more than a quarter point. Plan on the pre-approval letter expiring in 60 to 90 days.

Once the buyer and seller both sign the contract, New Jersey law starts a three-business-day attorney review period. During that window either side's attorney can disapprove or cancel the contract for any reason, and the deal is not firm until your attorney releases it in writing. This is where a real estate attorney earns the fee — correcting the contract, setting inspection deadlines and protecting your deposit. Choose one who handles New Jersey residential closings every week, and do it before you write your first offer.

As of July 10, 2025, the New Jersey mansion tax on homes of $1,000,000 and up is paid by the seller — it was previously the buyer's cost. If you're buying at that price point, that is one check you no longer write, though all of your other closing costs still apply. For everything a buyer actually brings to the table, ask your lender for a written cash-to-close estimate, and confirm the current treatment with your attorney since tax rules change.

A standard home inspection covers structure, roof, electrical, plumbing, heating and cooling — but it does not cover radon, underground oil tanks, sewer laterals, termites or mold, and in Central Jersey all five are worth checking. Much of this housing stock predates 1975, which is oil-tank territory, and a good part of the state sits in elevated radon zones. A tank sweep costs a couple hundred dollars, while an undiscovered leaking tank can cost tens of thousands to remediate after you own the home. Budget for a radon test and a sewer scope too, especially on older homes.

Your cash to close is more than the down payment. Plan for attorney fees, title insurance and search, lender and appraisal fees, recording fees, and the prepaid property taxes and homeowner's insurance your lender collects to set up escrow — together these commonly run 2% to 4% of the purchase price. In Central Jersey, property taxes are the line that most often reshapes the monthly payment, so have yours calculated on the specific town's actual tax bill rather than a county average. The Central New Jersey Buyer's Checklist walks through each of these line items.

In the strongest Central Jersey towns a well-priced home can go under contract within its first weekend, so being fully pre-approved and having your attorney chosen before you tour matters as much as the offer itself. Price is only one of five things a seller weighs — the closing date, deposit size, contingencies and how solid your financing looks all count, and a clean offer often beats a slightly higher one. None of that means waiving your protections: keep your inspection and financing contingencies and compete on the terms that cost you nothing.

You can renovate a kitchen, but you can't renovate a commute, a tax rate, a school district or a flood map — so shop the town before the house. Highland Park, Edison, Metuchen, New Brunswick and Piscataway sit within a few miles of one another and behave like different markets, and Northeast Corridor train access is already priced into them. Pull the FEMA flood map for any address near the Raritan, since flood insurance can add a few hundred dollars a month to a payment that otherwise worked. Spring brings the deepest inventory, but a prepared buyer can find the right home in any season.