5 Tips For NYC Couples Buying Their First HomeSeptember 26, 2019 by Sami Boutaleb
When in Rome, do as the Romans do, when in NYC, buy a home! NYC is a great city to live in, lots of different cultures to experience, lots of different food to eat, and plenty of free events to fill up your time.
Choosing a neighborhood can be tricky, but you can narrow it down with these 5 Tips For NYC Couples Buying Their First Home:
1. Save Up
Savings are important in life, that sentence needs no explanation. How much to save however, is the more important of the two statements. Essentially, in life, you’ll eventually want to own property, a home for example, and that usually requires a sizable down payment, either 10 – 20%.
In the absence of such a financial sum, banks may seize your assets as collateral for that down payment, and if you default on your mortgage, you could be left with now. Therefore save up while the opportunity is there, and save yourself the headache of future economic crisis.
2. Get Pre-approved
The approval process is time consuming and involves several parties, such as banks, attorneys, brokers and government. The most important reason to get pre-approved is to have a more realistic pursuit of properties within your affordability. This saves everybody’s time and makes the entire process more efficient.
The pre-approval process is simple, a mortgage broker works with you to get an idea of your assets and liabilities, while running a background credit check, which usually takes up to 48 hours.
3. Be Open Minded
The tip that any professional would give a home buyer is to write down their wants and expectations as well as their realistic options. It’s good to be clear on specifics like neighborhood and home size because that helps narrow the search process to a tailored solution that saves everybody time and effort at the end of the day.
Compromise is everything in these circumstances because not reaching an agreement could mean rates going up and prices going up and paying more for what you initially could’ve been secured for way less.
4. Be Ready For Competition
Finding the right broker may help in this regard as their organization and experience may result in quicker results. However, not all markets have the same level of supply and demand and therefore competition may be higher in certain neighborhoods. For example, Brooklyn and Manhattan are prime Real Estate markets and the race for affordable multi-bedroom condos is highly competitive.
This competition drives up prices and momentarily makes it seem as though the supply of units in the market is drying up. Don’t be fooled, new units are always being built, you just need to find the right one for you!
5. Work With a Buyer’s Broker
Hire a buyer’s broker because they won’t cost you anything. Their commission comes from the split with the seller’s agent, and they usually act as a knowledgeable buffer between you and the seller’s broker.
Their sole duty is to represent your best interests faithfully, and to negotiate on your behalf and to cater their listings to your criteria. They can also have networking connections that could give you an economic advantage in terms of legal representation and financial approval.
Be smart and keep an open mind when it comes to shopping around for a home. A lot of times we get stuck dreaming about our ideal home and we forget to think economically. While you’re in the market, it’s wise to get pre-approved as that significantly reduces the time necessary to close, and could also allow you to see listings that otherwise would not allow your attendance without a pre-approval.