New York is one of the most densely populated states in the United States and the real estate in the central New York area can be very expensive. The amount you need to buy a small place in New York may be enough to buy yourself a mansion in other states.
You have probably already looked online like in https://www.cnyrealtor.com and other websites when searching for CNY homes for sale. If you are planning to buy a home in central New York, be prepared to work hard because it is not an easy task, and so is getting a good deal. It is not, however, impossible.
Here are some tips to guide you in buying your home in CNY and how to get a good deal out of it:
- Clean your financial record.
Saving your money for a down payment is not enough when you are planning to buy a home, especially in New York where buying a home is always competitive. You have to get your finances in order as well. This can be very helpful when you are getting preapproved, too.
Cleaning your financial records means getting your credit score through either of the three main credit-reporting companies. The ideal credit report should be 700 or above. If your credit report is way below the ideal credit score then you should settle your debts first. It could be some unpaid credit card bills, parking tickets, cell phone bills or others. You have to pay as much credit as you have in order to increase your credit score.
- Get preapproved by a lender.
Getting preapproved by a lender means that the lender has reviewed your financial records and they have estimated the amount that you can borrow from them. It is necessary and helpful when planning to buy a home. Here are some reasons:
- You will get a rough estimate of the price range of the houses you can afford, therefore you can focus on looking for houses in those price range.
- Some homeowners prefer prospective buyers who are already preapproved because it means banks are willing to lend them money.
The process of getting preapproved is easy and it does not really cost a lot. You only need to give the requirements to your chosen lender, which usually includes your pay slip, tax records, bank statements, and other financial documents necessary.
The letter that contains the amount you can borrow is only valid for 90 to 120, days but that can easily be solved by a call to the lender if you haven’t found a house by then.
- Know your options.
In New York, you have to choose between a condo and a co-op when picking an apartment. Buying a condo unit is pretty straightforward. Buying into a cooperative housing or co-op, on the other hand, can be very difficult.
When choosing a co-op, you usually have to go through a rigorous financial background check. Different co-ops have different requirements, too. So if you are planning to buy a co-op apartment, it can be tricky because co-ops can turn down a sale for reasons only they know. Financially, it can also be more expensive to get a co-op since the burden of maintaining the building will fall on the shareholders, you, and the other homeowners in the building.
You can also choose to look for options by surveying specific neighborhoods. If you already know the price range of houses to look for, you can search the neighborhoods that have the price range you can afford. You can also look for places that are near your workplace or near good schools for your kids.
Visiting open houses will also give you an initial idea of what it is you are looking for and what your priorities would be in looking for a home. You can even download an app to receive automatic notifications when apartments or homes are open for sale in the neighborhoods you chose.
- Work with a real estate agent and other professionals.
Real estate agents can be very helpful if you already know what you are looking for. They can point you into the right direction and give you really good options of houses that are suited to what you have in mind.
Working with a real estate lawyer can also help you go through the deeds and other legal work involved in buying a house. They can explain to you the process and some terms that may be important, and the implications they have on you as the future homeowner.
Before moving in and closing the sale, it would also be more vigilant for you, as the future homeowner, to get a professional to inspect the house to see if there are hidden issues or things that need fixing before they become huge problems. A professional will know what to look for and can give you a proper assessment of the condition of the house or apartment before you close the deal and buy it.
- Have your cash ready.
Apart from your down payment, there are many other expenses that have to be settled before you can sign the papers and own the house you have set your sights on. Here are the other expenses you have to pay for when buying a house:
- Real estate agent or broker’s commissions
- Mortgage origination fees
- Insurance fees
- Appraisal fees
All these fees fall under the closing cost, which is 2 to 5 percent of the cost of the house you bought. If you hired a lawyer and other professionals to help you in choosing a house, then that means more expenses that you have to pay cash for. However, this can help you save more money because they have prevented you from buying a house that has hidden problems that can cost you more in the future.
- Don’t play favorites.
When looking for houses to buy, it can’t be helped that you find a favorite house with the best view, best kitchen or the like.
However, buying a house is like looking for a partner in life. You would like to get the girl of your dreams, but when it really comes down to it, you would choose the one who is practical, reachable, and really suits you. The girl of your dreams can still break your heart.
Buying homes, especially in central New York, is an arduous task. Some buyers even have to try many times before they get the right one. So be ready, and make sure you have read the important tips before you start looking.