The Home Buying Process in NJ: 6 Stages From Contract to Closing

Once you and the seller sign a contract on a New Jersey home, your purchase moves through six stages: attorney review, under contract, inspections, appraisal, mortgage commitment, and closing. Here’s what happens at each one if you’re buying in Morris, Sussex, or Warren County.

New here? Start with How to Buy a Home in NJ: 4 Steps for budgeting, pre-approval, and choosing your towns.

1: Attorney Review

During attorney review, your attorney and the seller’s attorney review the contract you both signed and make changes to it. They also settle details like inspection contingencies, deadlines, and the closing date. New Jersey law sets a three-business-day attorney review period. In practice it typically wraps up in 3–7 days, but it can run longer if needed. 

2: Under Contract

Once attorney review is concluded, you are officially under contract. All deadlines, inspection dates, and contingencies have started. It also means the sellers can no longer accept any other bids.

3: Inspections

Typically, the sellers will allow 14 days to complete all inspections and provide requests. The most common inspections on a New Jersey home are a full home inspection, an underground oil tank sweep, radon, termites, and septic (if the home isn’t on sewer). Then we negotiate credits or repairs based on the reports.

4: Appraisal

If you’re buying with a mortgage, the bank orders an appraisal from a third-party company to determine the home’s current market value.  The bank won’t lend based on a price higher than the appraised value, so it protects you from overpaying in the current market. If you’re buying with cash, you can still get an appraisal, but it doesn’t affect the sale unless your contract says otherwise.

5: Mortgage Commitment

Your lender issues a commitment letter stating they will fund your loan as long as you meet the conditions listed on it. Common conditions are updated pay stubs and verification of employment. Have questions about financing? Talk with our recommended lender.

6: Closing

It’s closing time! You’ll do a final walkthrough of the home, then head to your attorney’s office to sign the closing papers and get your keys.
This is a quick run-through of what’s involved. Every purchase is different, so choose a local, experienced Realtor to guide you. Schedule your buyer consultation.

 

Common questions about the NJ home buying process

How long is attorney review in NJ?


New Jersey law sets a three-business-day attorney review period after the contract is signed. In practice it typically wraps up in 3–7 days, but it can run longer if the attorneys need more time.

How long do you have to do home inspections in NJ?

Sellers typically allow 14 days to complete all inspections and submit repair or credit requests.

What inspections should I get when buying a house in NJ?

The most common are a full home inspection, an underground oil tank sweep, radon, termites, and a septic inspection if the home isn’t on sewer.

Do I need an appraisal if I’m paying cash?

No, but you can still get one. With cash, the appraisal doesn’t affect the sale unless your contract says otherwise.

What is a mortgage commitment?

It’s a letter from your lender stating they’ll fund your loan as long as you meet the listed conditions, most often updated pay stubs and verification of employment.

Why buy with Addison Real Estate

Local.

Founded in 2019 by broker/owner Kellene Addison, we're a locally owned brokerage based in Mount Arlington. Our agents specialize in the communities where they live and work.

Honest.

We take the time to understand your goals and give you straight answers, so you can make informed decisions.

With you to closing.

From finding the right home and negotiating your offer to inspections and closing day, you get clear communication and personal attention every step of the way.
We're more than a real estate agency. We're your neighbors.

CONTACT INFO

+1(862) 268-2773

111 Howard Blvd Ste 202, Mt Arlington, NJ 07856

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