Here’s How To Buy A New York City Condominium

Posted on January 8, 2010

You’ve found the condo you’ve dreamed about, and now you’re ready to move in and enjoy the sights and sounds of “The City That Never Sleep’s”. Hold everything. To keep from getting stuck with a lemon, you’ve got to do some homework. Here are some of the most important things you need to consider before buying a condo in New York City.

Buying a condo is similar to purchasing a single family home in that you may finance with a mortgage. That’s where most of the similarities end.

The information below is the product of years of experience from a seasoned mortgage professional who knows.

Get A Good Realtor

Preparing an attractive and acceptable board package is one of the most time consuming and important steps in purchasing a co-op. The guidance of a good Realtor [http://www.cashdan.com/_wsn/page11.html] is the key to success here. Some people choose to take on this undertaking themselves; this could be disastrous if not done properly. The slightest mistakes will lead to the board package being rejected.

There are some “red flags” to avoid when putting together the package:

Debt/Income Ratio Over 30

A Debt to Income Ratio above 30% will raise a red flag in the eyes of board members because it increases the risk that the buyer will default on payments in the future.

( maintenance payments are important to the board)

Income Reported on Tax Returns is DecliningDeclining income tells the board that your financial situation is deteriorating and may cause the board to ask more questions or dig deeper into your financial history before considering accepting your application.

Incomplete, Missing, or Poorly Written Reference Letters

Reference letters are an extremely important part of the package. Many Realtors have told me that a lot of condo boards put a lot of weight on this piece of the board package.

Check Out The Association

While they have an obligation to check you out, you also have a right to check them out. This is important, it’s best to know up front what type of people you will have to interact with, or put up with later. If possible try attending a meeting, some of these associations are run by know it alls, busy bodies, and people who have created their own little fiefdoms.

Ask to get a copy of the minutes of the condo association board meetings so that you can read through them. It’s a good idea to see what the owners have discussed or complained about at these meetings. For example if everyone was complaining about plumbing problems or the upkeep of the facilities or grounds, you know that the complex might be having management difficulties.

Even if there aren’t any complaints, a review of the minutes will enlighten you as to what types of things are of importance or major capital projects are under way at the complex.

SELECTING AN ATTORNEY

When selecting an attorney you should look for an experienced, quick-moving lawyer who can move from accepted offer to signed contract smoothly; preferably one who is in New York and whose practice concentrates on real estate transactions. You should also make sure they will be patient enough to explain the process as you move through it.

There are many attorneys who are on condominium boards themselves, represent condo boards, or specialize in condominium transactions, this type of attorney will be well versed in condominium transactions and be able to steer you down the winding road that is a condominium purchase.

FINDING A MORTGAGE LENDER

The New York City mortgage market is particularly unique and can be challenging whether you are a first-time or an experienced buyer.

You may want to review your credit report with your Mortgage Adviser and determine whether there are any errors, outstanding debts to be cleared, balances to reduce, or other items that can be eliminated in order to improve your credit score, thereby improving on the mortgage options available to you.

Many people believe the process starts by finding a property first. The truth is you should start by pre-qualifying yourself with a mortgage broker. Shopping for a home prior to doing this means that you are shopping in the blind without knowing what you can afford.

Be certain you are talking with an adviser who is more interested in telling you the truth, than telling you what you want to hear. Stated differently; don’t make your broker tell you what you want to hear, make them tell you the truth. Understanding what rate & program is best for your situation is the most important aspect of obtaining a mortgage.

Take the time to discuss the different financing options available for your credit & income situation with a Trusted Mortgage Adviser, and you will be light years ahead of where you began.

Author: Dan Harris
Article Source: EzineArticles.com
Provided by: Pressure cooker

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