If your ready to buy a home in NYC, there are many things to consider. It could be one of the biggest financial transactions of your life. Taking the proper steps of precaution can save you time, money, and energy down the road. I've put together a list of 5 important things you need to know before buying in NYC.
Location: Location is the most important thing to consider when buying real estate. The location you choose will effect your lifestyle and commute among other things. How long will the commute to work be? Does the neighborhood have good shopping and restaurants? If you have a car, how is the parking in the area? If you ride the subway, what train lines serve the area? If you have children or are planning to, how are the schools? What about the crime rate? Does the neighborhood have access to parks and recreation? These are all important things to consider when buying a home.
Property type: It's important to consider the type of property you plan to purchase. The options can be limited in particular areas. Some suburban areas only have single family homes. Others have multi-family properties and condos. Urban areas typically have a mix of single-family, multi-family, mixed-use, condos, and co-ops. You should research each option to see what property type fits your goals.
Financing plan: How do you plan to pay your home? Are you planning to pay all-cash or take out a mortgage? It's important to determine how you will pay for your home before you start the search. If you plan on obtaining a mortgage, its best to speak with a lender to find out the different financing options. Conventional loans used to purchase property typically require 20-25% down-payment. If you are a first time buyer, a government backed FHA loan may be a good option for you. The down-payment is low for FHA loans, around 3.5%, and can be used to purchase multi-family property. If you are a Veteran, the VA Loan requires no down-payment. Figuring out your financing is an important first-step in the process of buying real estate.
Price range: Determining your price range before you starting looking at potential properties can save you wasted time in the future. After you determine your financing plan, you will have a good idea on what your actual price range is. Maybe you will be surprised on how much you can afford, or surprised that you don't qualify for as much as you expected. Once you determine your price range you will be able to narrow down the options which will also bring more clarity to your search.
Assemble your team: Buying real estate is a complex task. There are a lot of people involved who are working in different capacities. The listing agent is working for the seller, against your best interests. Like sellers, buyers can hire an agent to represent their best interests throughout the buying process. It's smart to hire an agent who knows the local market and how to negotiate with listing agents. This can save you time and money when going through the buying process. A good buyers agent will also be able to provide you with a list of vendors you will need to successfully buy real estate such as attorneys, lenders, home inspectors, appraisers, architects, and contractors. Buying real estate is a complex task, and its important you build a team of competent professionals to help you successfully navigate through the buying process.