Buyers

Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can be approve for. A pre-approval is not a commitment to lend; it is simply how much your lender is willing to lend to you - pending forthcoming details, such as the value of the home and the specifics of your loan. It allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.

Before you begin looking for a home, talk with your real estate agent about what you want in a home, why you want to buy and where you'd like to live. If you want a condo, co-op, townhome, or single- family home?

Now is the time to start researching. This should be the most enjoyable step of the entire process (other than moving in!). I will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood.

All property transactions in New York City require a real estate attorney. I can assist you in finding experienced attorneys. Once negotiations are complete, the seller’s attorney will begin preparing a contract of sale during which time your attorney will begin his/her due diligence. Your attorney will review the contract, read the co-op or condo’s financial statements and by-laws, review the building’s offering plan, read the board meeting minutes, etc.
Once your attorney feels comfortable with his/her findings, you will be invited to sign the contract and submit a deposit of 10% of the purchase price. The contract is then forwarded to the seller for signature. The 10% deposit is held in the seller’s attorney’s escrow account until closing.

Now is the time to go back to the mortgage lender who pre-approved you and choose your mortgage. You still need to take a few additional steps to officially submit the mortgage application. If you decide to apply for your loan with the same lender that did your pre-approval, they already have some of the documents you’ll need for your application. Likely, you’ll need to provide updated financial statements. If you decide to move forward with another lender, they will tell you the list of documents needed to complete your application.. Work with your mortgage lender to select the option you feel the most comfortable with.

While co-op and condo packages look similar, the process is quite different. For co-ops, once your package is submitted, the Board will review your application. If your application meets initial approval, you will be invited to be interviewed by the Board or by an interviewing committee. This can sometimes take time to schedule; some buildings move more quickly than others. In the case of a condominium, there is generally no formal interview. Your application will be reviewed, and if all required materials are included and in order, an approval is typically granted. The entire process can move quickly in a condominium, and assuming a loan can be secured in a timely
fashion, the process can move from contract to closing in about 60 days.

Buyer and seller attorneys coordinate with the appropriate banks (if you financing) on available dates and times. After closing, you’ve officially purchased your new home. CONGRATULATIONS, YOU ARE A HOMEOWNER!