Those who have never purchased a New York City apartment tend to underestimate how long it may take to buy a condo or co-op. Unless you are buying in a new development or townhouse with all cash, you will need to cultivate the virtue of patience. However, you can streamline the buying process below with a knowledgeable buyer’s agent, planning, and foresight, from finding a buyer’s agent, attorney, mortgage pre-approval, financing, viewing properties, and the board application to closing day.
Steps to Buying
Estimating Your Budget
(Estimated timeframe: 1 – 3 days) Before searching for your perfect home, you need to calculate how much your weekly or monthly salary can spend on a mortgage payment. Once you have a budget in mind, you also need to consider how much it will cost to maintain an apartment,..Estimating Your Budget
Mortgage Pre-Approval
(Estimated timeframe: 3 – 7 days) The next step in the purchasing process is to contact a mortgage broker or banker to help you get pre-approved for a mortgage. To prove that you are a serious buyer, get a pre-qualification letter to show your good financial standing, which will enable..Mortgage Pre-Approval
Wish-List, Needs and Wants
(Estimated timeframe: 1 – 2 days) After receiving your mortgage pre-approval, you will need to decide how much you can afford your monthly expenses and down payment. Your wish list is next required. But, first, make a list of your priorities, preferences, and needs. Your wish list will help you..Wish-List, Needs and Wants
Choosing Between a Condo and Co-op
(Estimated timeframe: 1 – 3 days) Condo or. Co-op: What is the difference? To help decide, it is essential to understand the differences between them. In New York, there are two primary apartment options to choose between condo and co-op. Before buying a New York City apartment, you’ll want to..Choosing Between a Condo and Co-op
Hiring a Closing Attorney
(Estimated timeframe: 1 – 3 days) Once the seller has accepted your offer, you will need a real estate attorney to review and negotiate the sales contract and rider details. Real Estate Attorneys in New York City represent both buyers and sellers. The seller’s attorney will put together a sales..Hiring a Closing Attorney
Finding an Apartment to Buy
(Estimated timeframe: 3 weeks to 3 months on average) If you want things to move fast, you have to know what you want while also being realistic. Your budget will be a significant factor. The more cash you have for a down payment, the more options you’ll have and the..Finding an Apartment to Buy
Offer, Negotiation to Acceptance
(Estimated timeframe: 2 days to 1 week) In New York City, submit an offer in writing. When you find an apartment that hits 80% of your wish list, we recommend proceeding with an offer. Your agent will send your offer to the seller’s agent or directly to the seller. If..Offer, Negotiation to Acceptance
Home Inspection
(Estimated timeframe: 1-2 hours) When you find your ideal New York City apartment, it can be hard to see beyond the superb interior design or spacious rooms. However, potential homebuyers must dig deeper to discover possible hidden issues such as structural damage (water damage, bad construction, etc.) A certified home..Home Inspection
Due Diligence, Contract, and Signing
(Estimated timeframe: 5 to 7 days) Once an offer is accepted, a deal sheet is then distributed between the brokers and attorneys. After this, the seller’s attorney will prepare and send a sale contract. Along with the building financials, house rules, and by-laws, to your attorney to review. This due..Due Diligence, Contract, and Signing
Mortgage Application and Commitment
(Estimated timeframe: 45 – 60 days) Mortgage applications cannot be processed before the contract is finalized. However, once the mortgage application is complete, your lender will release a commitment letter. This letter is required to complete your board package/condo application if you are financing an apartment. If you’re financing, now..Mortgage Application and Commitment
Submit the Board Application Package
(Estimated Timeframe: 30-45 Days) Necessary: When buying in a New Development or a Sponsor Sale, please disregard this step. Once your purchase contract is; countersigned, your condo board will give you a complete board application. This application requires to be completed and approved before closing takes place. If there is..Submit the Board Application Package
Board Interview – (Co-op Only)
(Estimated Timeframe: 30 – 60 minutes) Most co-op boards meet once a month, and many do not respond in August. Frequently, meetings are in the evening on a weeknight. Keep in mind that an interview does not guarantee approval. The board will decide up to a few days after the..Board Interview – (Co-op Only)
Schedule the Closing
(Estimated Timeframe: 1 – 2 weeks after approval by the board) The closing date all depends on the parties involved. Assuming that everything is in order and everyone is eager to close, it can take about one to two weeks to schedule a closing. Your attorney needs to coordinate with..Schedule the Closing
Final Walk-Through
(Estimated Timeframe: 30 – 60 minutes) Best to be done the day before or the day of closing. It is essential to inspect the property before the closing date. Verify that the appliances, faucets, light fixtures, plumbing, and outlets are all working. Make sure the seller has left or is preparing to..Final Walk-Through
Closing Day
(Estimated Timeframe: 2 – 3 hours) It will finally be time to hand over the remaining closing cost payment and receive the keys to your new home on closing day. But with so many variables in play, it can sometimes take longer. The average timeframe in New York City from..Closing Day