Buying your first home in New York is such a huge achievement. No more paying rent! The next payment will be towards your own home. Also, this will be your own home so you will be able to decorate it to your liking and pretty much do whatever you want. It’s all yours. But buying any kind of property is not a joke. There are things you need to know. Luckily – you have us. We will also show you who can help you along the way and relocate to your new home. Get ready, we are about to simplify this.
You will need a lot more than just a down payment, see the process below
Don’t forget about the closing costs! These little things can add up quickly. The closing costs that New York City homebuyers must bear are also substantial. One or even two percent of the purchase cost for co-ops, between two and four percent of the purchase price for condos, and in some cases, it can be even more for new construction condos. These are just examples of these costs. It’s easy to estimate your closing costs using online calculators, so do your homework first. Also, you will need some money for the relocation itself. You need to do some serious research now!
Saving money
Start saving now, because it’s never too early. In addition to being one of the best cities in the country (and perhaps the world), New York City also has some of the most ridiculously priced apartment prices. When you buy a condo or co-op in New York City, you need to save as much money as possible because of the high sales prices and the 20% down payment requirements. Inexperienced buyers often believe that they can get by putting down less money for their first condo. However, this is extremely uncommon in New York City (even a few select condos that accepted 10 percent down payments are less common).
Although most NYC co-ops require a 20% down payment and allow up to 80% financing, some co-ops may require a down payment of 30% or more. No matter what kind of property you’re looking to purchase, you should always keep some money in the bank. In addition to putting money aside for a down payment, be sure to manage your high-interest revolving debts, such as credit cards, responsibly. To determine your ability to afford a co-op or condo, the board of directors and your lender will look at your debt-to-income ratios. Research current prices in NYC and how they changed since the pandemic.
The competition in NYC is huge
In a city with a population of over way 8 million people, finding a place to buy an apartment will be just as difficult as finding a place to rent. So, you need to prepare for this. Even in a slower buyer’s market, a well-priced condo or co-op will likely not last long if you see it. If you have your heart set on a particular apartment, act quickly before someone else does, especially if you are paying in full upfront. NYC is one of the hottest destinations in the world so finding a place is not easy.
Pre-approval
Even if you’ve seen some absolutely gorgeous real estate, you need to know exactly what you can finance in terms of your monthly payments before you begin searching for a home. Pre-approval letters are issued by lenders and mortgage brokers, who will verify your earnings, check your credit rating, and ask for additional financial information about your assets and income as well as your liabilities. SoFi is a popular choice for tech-savvy buyers who prefer online pre-approvals. It is common practice to submit your pre-approval letter with your offer, which not only clarifies how much you will be able to spend on an apartment but also allows you to act quickly when you locate the ideal one.
Zillow is not enough
Zillow.com is a great tool and will be of great help in finding your first home in New York but you can’t rely only on this website. You will need to find a real estate agent/agency as well. As we already said the competition here is thought rough and finding a nice place to live is not easy. Professionals like realtors have more resources, and better listings and you will have more chances to find a nice home for you in NYC. Pack & Go Movers will be able to help you once you find that place. Relying on professionals is always a smart choice.
Additional advice for first-time home buyers
First-time homebuyers, in particular, benefit greatly from the advice of an individual with the best interests at heart when making one of the most significant purchases of your life. A buyer’s broker is the best person to represent you in the transaction. An experienced buyer’s broker can assist you in your search, explain what documents you have to gather, and guide you through the whole negotiation process. They can also be there for you when making an offer and even prepare your board packages, and much more. A buyer’s broker, on the other hand, acts as an advocate for you. The best advice we have for you is to find a place with the lowest crime rate and enjoy a peaceful life in NYC because that is possible.
The last thing you should know when buying your first home in New York
Your real estate agent may be able to reimburse you for some of the fees you paid. Yes, a commission rebate can help you save money on your next real estate purchase, whether it’s a condo, townhouse, or co-op. In New York City, buyers can receive a commission refund of up to 2% of the purchase price thanks to our industry-leading Smart BuyerTM Rebate. Commission rebates can amount to as much as $30,000 for buyers who purchase a $1,500,000 apartment. An apartment in New York City costs a lot of money, so getting a refund (from Prevu which is a real estate technology ) is a welcome relief. Your new apartment’s furnishings, closing costs, and savings will all benefit from this extra cash. So, make sure to research this now.
Lisa Roberts has been engaged in writing blog articles for the last 7 years. Although she started off her career in the moving industry, her experience brought diversification to the content topics she covers. Today, her range of topics spans from moving across the globe to everyday lifestyle tips, marketing, real-estate news, etc. In her spare time, Lisa enjoys running, reading books and spending time with her dogs Lue and Sill. As a great lover of life, she finds something practical and useful in every experience, which contributes to her portfolio as well.
