Buyer's Guide

The New York City real estate market is extremely competitive. The most desirable and affordable properties can go to contract in a matter of days. The most important factors in getting a deal to closing include the following.

• Annual Income – Generally you can borrow up to about 3X gross annual income. If you have significant liquid assets you may be able to borrow more.
• Financial Statements – should be prepared by an accountant. It should lists net worth including assets, liabilities, salary, bonus, etc. The most qualified buyers are usually the ones whose offers are accepted. Having a complete financial statement is very important when there is an apartment or property with multiple bids.
• Asset Valuation – A down payment alone does not qualify a buyer for a coop or a condo in Manhattan. Usually, a coop board or condo association wants guarantees for mandatory maintenance fees. They want assurances against unexpected loss of income. Many coops require liquid assets totaling 1 year’s worth of maintenance and mortgage payments after closing. Also, some buildings require liquidity up to three years of combined costs. Ask your CENTURY 21 Scope Realty Agent to assist you with specific requirements.

A credit check is generally performed by a mortgage broker and pertains to your credit history. Resolve disputed claims and have them removed immediately from your credit report. Keep all pertinent documentation which illustrates that the issue is resolved. Also, we recommend buyers choose a mortgage broker because mortgage brokers can save time and money. We work with various brokers throughout the New York Area; if you are interested ask your CENTURY 21 Scope Realty Agent for more information.

The terms “pre-qualified” and “pre-approved” are often used interchangeably in the mortgage industry, but they represent two different stages in the homebuying process:

• Pre-Qualified: Pre-qualification is an initial assessment based on information provided by the buyer. It typically involves a quick evaluation of income, assets, and debts to determine the approximate mortgage amount a buyer might qualify for. Pre-qualification is a useful first step for buyers to gauge their purchasing power and start exploring potential homes. However, it’s important to note that pre-qualification does not involve a thorough review of the buyer’s financial documentation, and it’s not a guarantee of loan approval.
• Pre-Approved: Pre-approval is a more formal process that involves a comprehensive review of the buyer’s financial background by a lender. To obtain pre-approval, the buyer must submit detailed financial information, including income verification, employment history, credit report, and asset documentation. The lender then evaluates this information to determine the maximum loan amount the buyer qualifies for and issues a pre-approval letter. Pre-approval demonstrates to sellers that the buyer is a serious and qualified candidate, making their offer more attractive in competitive markets.

In summary, pre-qualification provides a rough estimate of the mortgage amount a buyer might qualify for based on self-reported information, while pre-approval involves a thorough review of the buyer’s financial documentation by a lender to determine their creditworthiness and maximum loan amount. Pre-approval carries more weight in the homebuying process and gives buyers a stronger negotiating position when making an offer on a property.

Having a real estate attorney who specializes in the NYC market is very important. First, they know the intricacies of the laws and regulations. Second, they can respond quickly to any problems that arise and can therefore expedite the closing. Ask your CENTURY 21 Scope Realty Agent to assist you in selecting a qualified real estate attorney.

A closing is where a buyer gives the seller money in exchange for ownership and title to a particular property. This bargained for exchange, or consideration, transfers ownership of the property. The seller also needs to sign different documents including a deed. The place of closing is normally at the bank attorney’s office. The parties present will be: seller, bank attorney, brokers, seller’s attorney, buyer’s attorney and title closer.

For mortgage applications and for coop or condo boards, buyers need to gather relevant financial documentation. Required documentation includes 2 months of most recent bank statements, brokerage statements and any other assets. In addition to current income verification, boards and banks require a minimum of 2 years of federal income tax returns. Self-employed buyers need to provide at least 3 years of federal tax returns and a letter from an accountant verifying income.

New York City is a city of diverse neighborhoods, all with their own unique appeal. Before beginning your search, decide what is important. For example, proximity to public transportation or proximity to your job. Are your preferences for a quiet residential neighborhood or a bustling hub of activity and nightlife? Try to be open to different areas as sometimes neighborhoods other than your first choice are more affordable and offer many of the same features. Visit our detailed neighborhood guide for information on all our neighborhoods. Also, ask your CENTURY 21 Scope Realty Agent to include any recommended, areas as you may not be aware of them and they may best suit your needs.