What does pre-approval entail?
Getting your finances in place before you begin your search for your new home will definitely save time and help ensure a smoother transaction. It also eliminates being turned down by a seller who has offers from other more buttoned-up buyers.
There are three distinct levels in the loan process.
First is the pre-qualification process, then the pre-approval process, and finally the mortgage approval
process. Pre-qualification means you are likely to
qualify for the asked loan amount assuming every-thing you stated is an accurate, full disclosure of your situation. The pre-approval is a step above
pre-qualification, as the mortgage broker will vet
your qualifications more thoroughly. You'll be asked for more detailed information with background and financial checks (including tax returns, credit check & income history). When all shows that everything is in good order you will receive a letter from the loan officer relaying the amount of your loan. This letter is normally a commitment for an established length of time, 60 days, afer which it expires.
1. Establish your price range.
2. Investigate neighborhoods to decide
where you'd like to live.
3. Speak with your broker or sales agent,
letting them know your criteria; large,
medium, or small building plus the "must
have's" and "wish list" amenities.
4. Once you find a property you want to
call home, be prepared for the
negotiating process. You will be guided
by your broker's knowledge of the
market place and evaluation of the
property itself. Trained negotiating skills
on the part of your broker are
exceedingly important during this
process. Getting the apartment and at
the right price depend upon those
5. After you have an accepted offer, your
attorney will go over the financials of the
building as well as reviewing the board
meeting notes. These notes reveal the
inner tickings of what is taking place with
the building, ie change in staff, building
improvements, and so forth. The attorney
will also go over the contract of sale with
you and the seller's attorney. It is in your
best interest to use a NYC real estate
attorney. Buyers have lost apartments
because attorneys unfamiliar with the
unique ways of maneuvering through the
New York co-ops and condos have not
been able to do the work in an expedited
fashion. A contract is not valid until it is
signed by both buyer and seller and
returned to the office of the buyer's