BUYER’S GUIDE

Congratulations you’re ready to buy a home! For most people buying a home represents your single most significant investment. The home buying process can be one of the most exciting, but sometimes also stressful, experiences you ever go through. Whether you’ve bought many homes or you’re looking to buy your first, it’s essential to be armed with the up-to-date knowledge of what to expect when purchasing a home in a unique market like New York City.

Finances

The first thing you need to do is take a look at your finances; check your credit score and make sure you have healthy savings. You want to make sure that you’re in the proper position to invest to buy a home. If the time is right, then the next step is to reach out to a bank and get a sense of how much money you will have access to.

Prequalified

Based on the information you provide during your initial conversation with a mortgage broker, you can qualify for a specific loan amount, once you finalize certain documents.

Pre-approved

When you are pre-approved for a mortgage, it means a lender has determined how much you can borrow, the loan programs that you may qualify for, as well as the interest rate you qualify for. This assessment is based on things like credit score, income, debts, and employment history. You’ll generally get a written statement from a lender stating this information, which can be used to give sellers confidence that you’ll be approved for a loan after they accept your offer. Most pre-approval letters are good for 60 to 90 days.

Types of Property

Cooperative Apartment/Co-op

Buyers purchase shares in a cooperative that collectively owns the apartment building. Shareholders have exclusive use of an apartment within the co-op. It is not considered real property.

Condominium/Condo

A residential building in which the apartments are individually owned, but the common parts of the property, including its grounds, are jointly owned. Condos are considered real property because buyers receive deeds for their homes.

Townhouse/Brownstone

A multi-story house which is attached to one or more similar houses by shared walls. 

Timeline

It’s important to manage your expectations of the home buying process; typically, the entire process can range from 2- 9 months from offer to closing depending on the type of property being purchased. Below are some key milestones to be aware of during the process. 

Cost Estimates

It never hurts to have a general sense of the costs you will face when buying a home. Below are some general costs that can occur during the home buying process.

 Reminder: Costs are an estimation, please use this info as a guide.