10 Questions First-Time Buyers Ask NJ Agents

The short answer: First-time buyers in New Jersey tend to ask the same practical questions: how much cash they need, what they must sign, what "attorney review" and "earnest money" mean, whether they should keep renting, and what happens after an inspection. None of those answers is a predicted mortgage rate or a promised sale price. They are process answers, and each one already has a longer guide on this site.

The agent-facing teaching plan is on working with first-time buyers in NJ. This page is the buyer-facing list.

1. How much do I need to put down?

There is no single New Jersey down-payment number. Many conventional loans involve private mortgage insurance when you put down less than 20 percent; see how PMI starts and ends. The New Jersey Housing and Mortgage Finance Agency publishes first-time homebuyer mortgages and down-payment assistance through participating lenders (NJHMFA homebuyers). Amounts and limits change, so read the current fact sheet. A lender's preapproval letter is not a final loan commitment (CFPB).

2. What else will I pay besides the down payment?

Closing costs are separate from the down payment. They can include lender fees, prepaid taxes and insurance, title charges and points. The vocabulary is in closing cost terms for NJ buyers. After you apply, federal rules require a Loan Estimate within three business days and a Closing Disclosure at least three business days before closing (12 CFR 1026.19).

3. Do I have to sign something before you show me houses?

In residential transactions, New Jersey generally requires a written brokerage services agreement before, or as soon as reasonably practical after, a firm starts helping a buyer (P.L.2024, c.32). Compensation is fully negotiable and not set by law. What the agreement must say is on written buyer agreements in NJ. You should also receive the Consumer Information Statement (N.J.A.C. 11:5-6.9; NJREC Bulletin 24-11).

4. What is attorney review?

Most New Jersey residential contracts prepared by licensees include a three-business-day attorney review period. During that window, either party's attorney can disapprove the contract or propose changes. The clock's start date matters; see NJ attorney review. Signing an offer is the beginning of that period, not the finish line.

5. What is earnest money, and can I lose it?

Earnest money is a good-faith deposit that shows you intend to perform. In New Jersey it is typically held in a broker's trust account or by another named escrow holder—not in a salesperson's personal account. Whether you get it back if the deal ends depends on the contract, contingencies and often attorney review. There is no statewide minimum. Details: earnest money deposits in NJ.

6. Should I keep renting instead of buying?

That is a worksheet question, not a slogan. Compare your rent with the full monthly cost of owning—loan payment, taxes, insurance, maintenance and cash at closing—and be honest about how long you expect to stay. Rent vs buy in New Jersey shows how to run the numbers. No article here will predict next year's rates or prices.

7. How do property taxes work on a NJ home?

New Jersey property taxes apply the local tax rate to the assessed value, which is not automatically the price you just agreed to pay. A plain explainer is how NJ property taxes work. Ask your lender how taxes are escrowed, and look up the current assessment with the town—do not treat a listing remark as the official bill.

8. What if the home inspection finds problems?

A home inspection is how you learn about condition after the contract is signed, usually under an inspection contingency. In New Jersey it must be performed by a licensed home inspector (N.J.A.C. 13:40-15.1). The seller's disclosure form is not a warranty. From there, buyers often request repairs or a credit, or they may walk away if the contingency allows it. See contingencies and inspection repair requests.

9. What is PMI, and when does it go away?

Private mortgage insurance protects the lender if you default. It commonly applies to conventional loans with less than 20 percent down. Federal law sets when you may request cancellation and when the servicer must end it. It is not the same as FHA mortgage insurance. See PMI explained.

10. What documents will I actually see?

A New Jersey purchase produces a stack: the Consumer Information Statement and buyer agreement, the contract and attorney-review letters, the seller's disclosure and any lead paperwork, inspection and appraisal reports, the Closing Disclosure, and the papers signed at closing. 12 documents you will see in a NJ home sale names them in order. Comparing a condo or co-op with a house? Start with condos, co-ops and 55+ communities.

If you are still deciding whether to get licensed so you can answer these questions for clients, Business Elementary's 75-hour pre-licensing course is the starting point.

Sources

• P.L.2024, c.32 (written brokerage services agreements): https://pub.njleg.state.nj.us/Bills/2024/PL24/32_.PDF
• N.J.A.C. 11:5-6.9 (Consumer Information Statement): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-9
• NJREC Bulletin 24-11: https://www.nj.gov/dobi/bulletins/blt24_11.pdf
• 12 CFR 1026.19 (Loan Estimate and Closing Disclosure timing): https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
• CFPB, preapproval vs prequalification: https://www.consumerfinance.gov/ask-cfpb/whats-the-difference-between-a-prequalification-letter-and-a-preapproval-letter-en-127/
• N.J.A.C. 13:40-15.1 (licensed home inspectors): https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-13-40-15-1
• NJHMFA homebuyer programs: https://www.nj.gov/dca/hmfa/homebuyers-and-renters/homebuyers/
• CFPB, Buying a House: https://www.consumerfinance.gov/owning-a-home/

Last reviewed: November 8, 2026