TYPICAL QUESTIONS ANSWERED

What do I need to facilitate the buying process so I do not miss out on a great deal?

The New York City real estate market is extremely competitive. The most desirable and affordable properties can go into contract in a matter of days. The most important factor in getting a deal is to be ready to submit an offer right away (on the spot). For that you need:

-Letter of pre-approval

-REBNY Financial Statement

-Short introduction letter

Luxury Apartments LIC can assist you with the specific requirements.

What does being pre-qualified mean?

Pre-qualified, also called pre-approved, is when a perspective buyer tells a lender their income level, debt and credit information, so the lender can provide an estimated loan amount. Being a pre-qualified buyer will reassure a seller that any offers made are bona fide and that a buyer can actually make the purchase. In fact, most offers submitted by Luxury Apartments LIC are often accompanied by a buyer's pre-qualification letter.

Ask your Luxury Apartments LIC agent to provide you with (a trusted partner's) information about financing, estimated monthly mortgage payments, and any other necessary qualifications. Pre-approval letters make for strong offers because the lender has already pulled a credit report, checked debt/to/income ratio and done an analysis of your finances. Also, it is preferable to be pre-approved so that there will be no surprises when the credit report is received.

Why select a real estate attorney?

The real estate market in NYC is a very dynamic and quite unique. 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 issues that arise and can therefore expedite the closing. Ask your Luxury Apartments LIC agent to assist you in selecting a qualified real estate attorney.

What is a closing?

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, results in a transfer of property ownership. 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.

What are the steps in the application process?

For mortgage applications and for co-op 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.

When do I need to move?

Find a target date for moving. If looking to finance, expect to take about 3 months from purchase to close. Buyers, begin your search 4-6 months before prior to an estimate moving date.

Where do I want to live?

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. Do you prefer 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.

What is the best way to win over sellers?

If you really want to buy a particular property that has generated a lot of interest, sell the seller on the fact that you are a qualified buyer. It doesn't matter whether you plan to buy a studio or a building; chances are that there is a limited number of properties available in your price range. In a competitive market such as NYC, attractive properties can be in contract before they even appear in the classified ads.

Brokers tend to notify serious buyers first. Make sure that you are ready to buy; have all your paperwork in order including financial documentation and pre-qualification for a mortgage. Communicate your needs, budget, timetable, and neighborhood preferences.

Make yourself available to view properties. Workdays are preferable as you avoid weekend shoppers and congested open houses. Also, keep in mind that a lot of the best buildings tend to show properties between 10AM to 3PM, M-F.

How do I make the deal happen?

After finding the property you want, immediately make a verbal offer. Consult your Luxury apartments LIC agent for the best ways to extend an offer to a seller. There are a lot of different reasons, other than money, that influence a seller in choosing the right buyer. If the verbal offer is accepted, have your broker get confirmation of the offer and acceptance in writing. Once the written offer is accepted and signed, your Luxury apartments LIC agent prepares a transaction summary. This is sent to the seller's and to the buyer's attorneys for review. Using the signed offer and acceptance, the seller's attorney then prepares a contract of sale. After the buyer's attorney reviews the contract, negotiates the terms and evaluates the property's financial statements, the buyer then signs the contract and presents the down-payment check. Generally, down-payments range from 10% - 20% of the contract of the sale. This money is often held in the selling attorney's escrow account to be sent to the seller's attorney. The seller then executes the contract.

Note*: Verbal offers are not legally binding. In fact, in the New York City area an offer is legally binding when both the buyer and the seller sign a contract of sale. Sometimes sellers are tempted by higher offers. To avoid problems, be prepared and have your attorney move quickly through reviewing financials and completing the contract.

How much money should I put down?

The amount needed to purchase property varies with the type, size and location of a property. Luxury apartments LIC recommends being prepared to pay about 10-20% of total price. Some properties may accept a smaller percentage for qualification. You will also need to set aside additional monies for closing costs.